Supplier terminating contract but keeping our deposit?

AdamMoneySaver

I've searched high and low for this scenario, but cannot seem to find anyone who has experienced this.

We instructed a design agent to complete some Building regulations plans for us on 7th March with a schedule stating that the work would be completed in 5 - 7 workings days.

Two full weeks later (10 working days) I emailed for an update to be told he was 'well into the drafts, will have something for you next week'.. Another week after that I rang and got nothing and then chased via email later that week - 28th March now.. The email in reply: Andrew is unwell and self isolating. In light of this we have closed down for a few days.

18th April: I emailed asking for an update which was responded to by apparently another member of the company stating that they couldn't complete the work due to the lock-down, with very sarcastic comments like "You will be glad to know should you be wondering at all that Andrew is recovering well".

Now apparently "due to my attitude" - (asking for work that has been paid for to be completed) "[we] will not be undertaking the rest of the work on your project.... The deposit is non returnable as per my terms and conditions that you agreed to on my original quote."

This feels like fraudulent theft and they had no intention of ever doing any work at all!
Do I have any rights as a consumer to demand my deposit is returned?

dj1471

Yes, of course you do. If you paid by card you can contact your card issuer for a chargeback, otherwise send a letter before action and continue with small claims court as necessary.

Supersonos

They've terminated the contract early so they're in breach of contract.  Unless you've in any way given them a deadline or said you don't want them to continue with the work, they need to return the deposit to you or complete the work agreed in the contract.

What do their Ts and Cs say?  "We can take your money and then not bother doing the work but keep the deposit"?!

AdamMoneySaver

Haha, thanks both, that's very reassuring. I emailed back with the below this morning:

<EMAIL>
If you are terminating our contract, you must return our deposit, otherwise you are in breach of contract.

I will give you until 10:00 on 14 May 2020 to consider your position and reply stating you wish to do one of the following options; 

1: You are terminating our contract and returning our deposit, or 

2: You are completing the work as contracted.

If you fail to reply by this point (10:00 on 14 May 2020), I will unfortunately be forced into starting the process towards small claims court action for you to return our deposit. This will involve you also paying our court costs.

<EMAIL>

AdamMoneySaver

dj1471 said:

If you paid by card you can contact your card issuer for a chargeback, 

Unfortunately I sent the deposit by Bank Transfer as there was no alternative.... lesson learned

Supersonos

AdamMoneySaver said:

dj1471 said:

If you paid by card you can contact your card issuer for a chargeback, 

Unfortunately I sent the deposit by Bank Transfer as there was no alternative.... lesson learned

Keep us updated.  I suspect they'll pay once they get the paperwork from the court.

AdamMoneySaver

Supersonos said:

Keep us updated.  I suspect they'll pay once they get the paperwork from the court.

Cheers - will do

unholyangel

Remember to send a letter before claim/action OP, in order to comply with the civil procedure rules. 

You should also give a minimum of 14 days for a resolution/response (the minimum specified by the civil procedure rules). 

waamo

unholyangel said:

Remember to send a letter before claim/action OP, in order to comply with the civil procedure rules. 

You should also give a minimum of 14 days for a resolution/response (the minimum specified by the civil procedure rules). 

Just to add this should be by old fashioned post. An email isn't a valid letter before claim. Send it first class and get free proof of posting.

nyermen

+1 for proof of posting rather than signed for which can be refused.
One point - for small claims, I dont believe legal costs are awarded. (from Quote: "This will involve you also paying our court costs")

waamo

nyermen said:

+1 for proof of posting rather than signed for which can be refused.
One point - for small claims, I dont believe legal costs are awarded. (from Quote: "This will involve you also paying our court costs")

If you win you get the fees you've paid (initial filing fee plus hearing fee if applicable) added to your award. You can claim a flat £50 to get a solicitor to file the claim for you but it would probably cost more than that to get one to do it.

You might get other expenses paid depending on the mood of the judge but it isn't guaranteed. It depends on how reasonably both parties have acted. The bar for unreasonable behaviour is pretty high though.