Bensons for Beds (Return of Deposit)

Tony_Soprano_2020

Any advice on this would be useful - it’s a Bensons for Beds query...

Basically my son and girlfriend were pressurised into ordering a bed from Bensons for Beds store on Saturday 4th July 2020. Due to a change in their circumstances they now don’t want to continue with the order and cancelled in writing on the 7th July 2020. This cancellation has been acknowledged by the store manager - But he is refusing to refund the £260 deposit!

Not anywhere in their provided written T&Cs (that was given with the order, or anywhere on their website) does it say that the deposit is non-refundable. When you speak to them (customer services, sales rep, manager etc.) they verbally quote that it is their policy to charge 20% of the order if cancelled after 24 hours!

My argument is that this subsequent info was not provided in writing at the time of order - and they are deliberately missing this crucial piece of information to customers.

My son will undoubtedly have to take this higher as a complaint, write to CEO or dispute it with his bank, but this company sound very dodgy and untrustworthy.

Has anyone had similar experiences with Benson for Beds (or similar outlets)?

Any advice on how to get the deposit back would be appreciated as Bensons for Beds conduct seems unlawful to me?

DoaM

In law there is no right to cancellation for a contract engaged on the seller's premises. (Unless the contract T&Cs allow for cancellation). By the same token they can't charge an arbitrary amount (e.g. 20%) for the consumer's breach of contract ... they can only charge either their incurred costs up to the time of cancellation, or (possibly) the loss of profit from the contract.

But I believe you (they) are being disingenuous when you say they were "pressurised" into making the order ... they always had the option to say No. This is buyer's remorse and looking for a loophole.

Sandtree

DoaM said:

 they can only charge either their incurred costs up to the time of cancellation, or (possibly) the loss of profit from the contract.

They cannot claim the loss of profit from the contract but I imagine some companies would try to claim a more global type figure (if the sales guy hadn't spent time with you he'd have secured a sale with someone else) but they'd have to use a fairly pessimistic figure as clearly not all sales people are busy 100% of the time and if they are its not the OP's fault they are short staffed.

I certainly believe however it is possible to charge an average loss fee rather than working it out for each and every case just as long as you can show how its appropriate (similar to insurers charging a flat cancellation fee - have had to submit our justification before to the FSA as it was at the time). 

I am struggling a little to understand how the value of the bed impacts their costs though, unless they are paying on money to their suppliers at point of order as a deposit themselves. I guess higher value beds may have more options, customers take more time deciding given the commitment but still feels a bit weak. 

Fully agree however, there is no automatic right to cancel a contract signed anywhere other than online or from a cold door step caller and no need to tell you this as you could read the contract and see the terms before signing. A sensible company will take a deposit that is damned closed to the cost of early termination so that they aren't the ones chasing if the customer reneges on the agreement 

Tony_Soprano_2020

Thanks for the responses.
I hope it is at least a lesson learned for them both from this experience?
I do know that they were not advised about this 20% non-refundable deposit policy and if it is not provided in writing. The sales rep cant claim that she 'verbalised' it at the time, as their is no evidence of it.
From what I am reading from the replies, it appears that there is slim chance of him getting the deposit back.
Is it as simple as that?

DoaM

@sandtree Any cost of selling is pre-contract thus forms no part of the actual contract itself. So whether a salesperson spent 15 minutes or 3 hours securing the sale is irrelevant to the consumer contract. A loss of profit claim would apply to the specific contract, not in general. However companies tend not to pursue this avenue as it potentially opens up their books to their competitors ... court claims are a public record and the consumer can require the company to prove their loss of profit claim - this could open up their supply chain costs and be very useful info for a competitor. That's why they would err on claiming costs instead (if they can't get away with their unlawful cancellation charges).

@Tony_Soprano_2020 You misunderstand ... there is every chance of getting the deposit back, less any reasonable and provable costs incurred by the company. But they'll have to be firm with the company and not back down - perhaps even going as far as a Letter Before Claim and raising an MCOL claim.

Sandtree

DoaM said:

@sandtree Any cost of selling is pre-contract thus forms no part of the actual contract itself. So whether a salesperson spent 15 minutes or 3 hours securing the sale is irrelevant to the consumer contract. A loss of profit claim would apply to the specific contract, not in general. However companies tend not to pursue this avenue as it potentially opens up their books to their competitors ... court claims are a public record and the consumer can require the company to prove their loss of profit claim - this could open up their supply chain costs and be very useful info for a competitor. That's why they would err on claiming costs instead (if they can't get away with their unlawful cancellation charges).

I can say from first hand experience that the courts (and financial services regulators) do allow cost of selling as a legitimate expense when claiming for termination of contract when there is a direct link to the contract (eg PPC/Affiliate marketing).

I am not saying they form "part of the contract" but it is a sunk cost which has happened because the contract was formed and is now a pure loss because the contract has been terminated.

Loss of profit on the specific contract is on even weaker grounds... for example if we take a holiday cottage that someone rents for a week in 11 months time. They then cancel their booking 1 month later; to say the company can claim for loss of profit clearly doesn't make sense as there is a fairly high chance of that slot being rebooked by someone else, potentially at a higher rate, in which case the owners would have made double profit. The recovery process however cannot be frustrated by having to wait 10 months to "see what actually happens".  Similarly in fatal motor accidents we use Ogdon tables to calculate loss of earnings over a lifetime than wait to see when the widow(er) dies.

Similarly the bed the OP had intended to buy has potentially already been sold to someone else now hence a "cost of sale" approach is much fairer to all involved than a "loss in profit" model which would often result in an overall benefit to the merchant.

Tony_Soprano_2020

What would be the recommendation here for the next steps required in order to try and obtain the deposit refund...
Would it be a formal complaint letter to Head Office / CEO / the store manager?
A complaint letter to the Furniture Ombudsman?
Raise a dispute with his bank (chargeback)?
All of the above?

Sandtree

Most of those are mutually exclusive and so no harm in doing them at the same time.

I suspect a chargeback will be hard to get a bank to do, no harm in asking though, and even if it is successful it doesn't discharge their liability... just means the money is in their account and its for Bensons to get a CCJ against them to get it back -v- at present it being in Benson's account and for you to try and get it back.