Hiring school hall for classes but lost money

Tim_B_2

I was hiring a school hall to run classes, and the school used a company called School Lettings Solutions to hire out their facilities and take payments from hirers like myself. SLS took payments monthly via my business visa debit card. In mid-March when schools were closed I had just paid for the upcoming month and SLS wasn't replying to any messages. Then a few weeks ago we were told it had gone into administration. Now that schools are open and they are hiring their facilities again I asked the school if they can give us a few free weeks to make up for the lost payments. They said that the financial loss is mine to bear, not the school's. Am I right in thinking that SLS was the school's chosen representative and was no different than if the school had hired the hall to my business directly, and I've paid the hire fee in good faith to their agent, and so the school should be liable for this?

Annisele

If you are right to say SLS was merely the school's agent, then I think you are also right to say the situation should be no different to if the school had hired the hall to you directly. (Though I don't know what that situation would be - sounds like a frustrated contract, but I don't know the legal position.)

But I think my first question is whether you are in fact right to consider SLS the school's agent - the school doesn't appear to see it that way. If, say, SLS hired the hall from the school, then you hired the hall from SLS, then SLS would have been acting independently and the school (probably) wouldn't be liable for SLS's actions. There's also a third option, where you contracted with both SLS and the school and their responsibilities are split according to that contract.

Who is named on your contract, and what did that person contract to do?

Tim_B_2

Thanks for your reply, Annisele. I don't recall being asked to sign a contract with either the school or SLS. I believe the school just sent me a copy of their terms & conditions, which state "Payment of invoices are to be made via the hirer’s online account by one of our preferred online payment methods."

This gave me the impression that SLS was just a payment collector on their behalf.

jon81uk

This article states that they would pass a share of the earnings on to the school
https://schoolsweek.co.uk/school-facilities-hire-firm-goes-into-administration/
If the school never received the final payment you made then I'm guessing they don't owe you anything, but you may have a claim from SLS administrators, although I doubt there is any money to refund you.

Sandtree

Have you asked your bank about doing a chargeback? I honestly don't know if the card scheme rules limit chargebacks only to personal cardholders or include small businesses too.

Tim_B_2

Sandtree said:

Have you asked your bank about doing a chargeback? I honestly don't know if the card scheme rules limit chargebacks only to personal cardholders or include small businesses too.

Thank you for the suggestion. I didn't think so as it's a business debit card. I was under the impression that it was just credit cards that offered such protections. But I'll ask them.

Tim_B_2

jon81uk said:

This article states that they would pass a share of the earnings on to the school
https://schoolsweek.co.uk/school-facilities-hire-firm-goes-into-administration/
If the school never received the final payment you made then I'm guessing they don't owe you anything, but you may have a claim from SLS administrators, although I doubt there is any money to refund you.

My understanding is that the school didn't receive the payment from SLS.

Yes I have a feeling that there won't be any money to pay us back.

Sandtree

Tim_B_2 said:

Sandtree said:

Have you asked your bank about doing a chargeback? I honestly don't know if the card scheme rules limit chargebacks only to personal cardholders or include small businesses too.

Thank you for the suggestion. I didn't think so as it's a business debit card. I was under the impression that it was just credit cards that offered such protections. But I'll ask them.

Credit cards offer S75 protection, S75 wouldnt apply to business cards in most cases as its the Consumer Credit Act but chargeback applies to both credit and debit cards and the rules come from Visa and Mastercard and not a piece of consumer protection legislation.... it could be it does only apply to consumers though some consumer protection does also apply to vSME business too (eg able to use FOS)

Tim_B_2

@Sandtree, I didn't know that chargebacks and S75 protection were two separate things. I spoke with my bank and they sent me a form to complete and refunded it. Thank you so much for the advice.

Sandtree

Tim_B_2 said:

@Sandtree, I didn't know that chargebacks and S75 protection were two separate things. I spoke with my bank and they sent me a form to complete and refunded it. Thank you so much for the advice.

No worries, banks prefer chargebacks because its not money out of their pocket, they claim it from the other bank, but the merchant does get a window in which to dispute the chargeback; your bank may have warned that the money could be taken back in X days. 

S75 is more comprehensive cover but as its a claim from your bank's own pocket they aren't as keen and often will attempt a chargeback first if its applicable even if you ask to make a S75 claim.