Unfair "non refundable" deposit contract term

Miss.Twizz

Has anyone had any success getting a salon "non refundable booking fee" refunded?

Long story short I've had to cancel several appointments due to unexpected relocation. Appointments were made months in advance and the first one is still over a week away at the time of cancelling. The salon holds a rolling deposit to cover no shows or late cancellations (fair) however they state in their T&Cs it's "non refundable". However under the guidance of what constitutes a fair/unfair contract term, it is clear that a business is only entitled to keep an amount sufficient to cover their actual losses that directly result from a cancellation. With the popularity of evening appointments and the considerable notice for cancellation, these appointments will easily be filled by other customers. Therefore there will be no loss to justify keeping any deposit amount. According to citizens advice "Typically, a business has no entitlement to keep any amount that can be saved by finding another customer, this would constitute an unfair contract term."

The salon state that because it's "non refundable" they retain this if you cancel within 48 hours (again fair) but only offer a gift voucher for the deposit amount when cancellations are more than 48 hours in advance, even in my case over a week's notice! For me this is just the same as unfairly retaining my deposit because I will be unable to use a voucher due to relocation. This doesn't seem right to me at all. Does anyone have any advice? All help much appreciated! 

the_lunatic_is_in_my_head

Hello OP

This is covered by the Consumer Rights Act:

https://www.legislation.gov.uk/ukpga/2015/15/schedule/2

Consumer contract terms which may be regarded as unfair

A term which has the object or effect of permitting the trader to retain sums paid by the consumer where the consumer decides not to conclude or perform the contract, without providing for the consumer to receive compensation of an equivalent amount from the trader where the trader is the party cancelling the contract.

This is supported by CMA guidance:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/450440/Unfair_Terms_Main_Guidance.pdf

Detailed at 5.13 on page 87

You are correct that they may retain costs or loss of profit and both must be mitigated (lessened) which for profits means finding another customer. 

As with all these things it's a case of showing the trader the law > letter before > small claims and hoping they fold before the last option.  

TELLIT01

How much are they retaining?

Undervalued

Miss.Twizz said:

Has anyone had any success getting a salon "non refundable booking fee" refunded?

Long story short I've had to cancel several appointments due to unexpected relocation. Appointments were made months in advance and the first one is still over a week away at the time of cancelling. The salon holds a rolling deposit to cover no shows or late cancellations (fair) however they state in their T&Cs it's "non refundable". However under the guidance of what constitutes a fair/unfair contract term, it is clear that a business is only entitled to keep an amount sufficient to cover their actual losses that directly result from a cancellation. With the popularity of evening appointments and the considerable notice for cancellation, these appointments will easily be filled by other customers. Therefore there will be no loss to justify keeping any deposit amount. According to citizens advice "Typically, a business has no entitlement to keep any amount that can be saved by finding another customer, this would constitute an unfair contract term."

The salon state that because it's "non refundable" they retain this if you cancel within 48 hours (again fair) but only offer a gift voucher for the deposit amount when cancellations are more than 48 hours in advance, even in my case over a week's notice! For me this is just the same as unfairly retaining my deposit because I will be unable to use a voucher due to relocation. This doesn't seem right to me at all. Does anyone have any advice? All help much appreciated! 

Plus a reasonable amount to cover the admin involved in dealing with the matter (plus any extra advertising etc - probably not relevant here).

Also if you took them to court how are you going to show, on the balance of probabilities, that they did in fact manage to rebook your cancellation?

Miss.Twizz

Undervalued said:

Miss.Twizz said:

Has anyone had any success getting a salon "non refundable booking fee" refunded?

Long story short I've had to cancel several appointments due to unexpected relocation. Appointments were made months in advance and the first one is still over a week away at the time of cancelling. The salon holds a rolling deposit to cover no shows or late cancellations (fair) however they state in their T&Cs it's "non refundable". However under the guidance of what constitutes a fair/unfair contract term, it is clear that a business is only entitled to keep an amount sufficient to cover their actual losses that directly result from a cancellation. With the popularity of evening appointments and the considerable notice for cancellation, these appointments will easily be filled by other customers. Therefore there will be no loss to justify keeping any deposit amount. According to citizens advice "Typically, a business has no entitlement to keep any amount that can be saved by finding another customer, this would constitute an unfair contract term."

The salon state that because it's "non refundable" they retain this if you cancel within 48 hours (again fair) but only offer a gift voucher for the deposit amount when cancellations are more than 48 hours in advance, even in my case over a week's notice! For me this is just the same as unfairly retaining my deposit because I will be unable to use a voucher due to relocation. This doesn't seem right to me at all. Does anyone have any advice? All help much appreciated! 

Plus a reasonable amount to cover the admin involved in dealing with the matter (plus any extra advertising etc - probably not relevant here).

Also if you took them to court how are you going to show, on the balance of probabilities, that they did in fact manage to rebook your cancellation?

No admin involved, all booked via a booking app and cancelled in a click of a button, 30 seconds at most. No advertising, there would be no need for additional advertising, evening appointments are snapped up. As for proof they're filled, that could be done easily with their own online booking app showing no free appointments available because they'd be filled in a shot by other customers. I can see the one I cancelled next week is already unavailable, someone else has already booked it. 

Miss.Twizz

TELLIT01 said:

How much are they retaining?

They should have a £20 rolling deposit. However due to some confusion the have ended up with £40 from me and are trying to tell me it's "non-refundable" and they will only return it with more than 48 hours notice of cancellation in the form of a gift voucher. Useless to me due to relocation and tantamount to retaining it. 

Alderbank

How did you pay the £40?

TELLIT01

Miss.Twizz said:

Undervalued said:

Miss.Twizz said:

Has anyone had any success getting a salon "non refundable booking fee" refunded?

Long story short I've had to cancel several appointments due to unexpected relocation. Appointments were made months in advance and the first one is still over a week away at the time of cancelling. The salon holds a rolling deposit to cover no shows or late cancellations (fair) however they state in their T&Cs it's "non refundable". However under the guidance of what constitutes a fair/unfair contract term, it is clear that a business is only entitled to keep an amount sufficient to cover their actual losses that directly result from a cancellation. With the popularity of evening appointments and the considerable notice for cancellation, these appointments will easily be filled by other customers. Therefore there will be no loss to justify keeping any deposit amount. According to citizens advice "Typically, a business has no entitlement to keep any amount that can be saved by finding another customer, this would constitute an unfair contract term."

The salon state that because it's "non refundable" they retain this if you cancel within 48 hours (again fair) but only offer a gift voucher for the deposit amount when cancellations are more than 48 hours in advance, even in my case over a week's notice! For me this is just the same as unfairly retaining my deposit because I will be unable to use a voucher due to relocation. This doesn't seem right to me at all. Does anyone have any advice? All help much appreciated! 

Plus a reasonable amount to cover the admin involved in dealing with the matter (plus any extra advertising etc - probably not relevant here).

Also if you took them to court how are you going to show, on the balance of probabilities, that they did in fact manage to rebook your cancellation?

No admin involved, all booked via a booking app and cancelled in a click of a button, 30 seconds at most. No advertising, there would be no need for additional advertising, evening appointments are snapped up. As for proof they're filled, that could be done easily with their own online booking app showing no free appointments available because they'd be filled in a shot by other customers. I can see the one I cancelled next week is already unavailable, someone else has already booked it. 

Even with electronic booking systems there is an admin/overheads cost.  £20 doesn't sound unreasonable, but the OP needs to get to the bottom of why more than one charge of £20 has been applied.

born_again

Miss.Twizz said:

Undervalued said:

Miss.Twizz said:

Has anyone had any success getting a salon "non refundable booking fee" refunded?

Long story short I've had to cancel several appointments due to unexpected relocation. Appointments were made months in advance and the first one is still over a week away at the time of cancelling. The salon holds a rolling deposit to cover no shows or late cancellations (fair) however they state in their T&Cs it's "non refundable". However under the guidance of what constitutes a fair/unfair contract term, it is clear that a business is only entitled to keep an amount sufficient to cover their actual losses that directly result from a cancellation. With the popularity of evening appointments and the considerable notice for cancellation, these appointments will easily be filled by other customers. Therefore there will be no loss to justify keeping any deposit amount. According to citizens advice "Typically, a business has no entitlement to keep any amount that can be saved by finding another customer, this would constitute an unfair contract term."

The salon state that because it's "non refundable" they retain this if you cancel within 48 hours (again fair) but only offer a gift voucher for the deposit amount when cancellations are more than 48 hours in advance, even in my case over a week's notice! For me this is just the same as unfairly retaining my deposit because I will be unable to use a voucher due to relocation. This doesn't seem right to me at all. Does anyone have any advice? All help much appreciated! 

Plus a reasonable amount to cover the admin involved in dealing with the matter (plus any extra advertising etc - probably not relevant here).

Also if you took them to court how are you going to show, on the balance of probabilities, that they did in fact manage to rebook your cancellation?

No admin involved, all booked via a booking app and cancelled in a click of a button, 30 seconds at most. No advertising, there would be no need for additional advertising, evening appointments are snapped up. As for proof they're filled, that could be done easily with their own online booking app showing no free appointments available because they'd be filled in a shot by other customers. I can see the one I cancelled next week is already unavailable, someone else has already booked it. 

You are missing the cost of the APP, the fact someone has to check & change schedules at their end. There has to be human interaction at some point.

Miss.Twizz

Alderbank said:

How did you pay the £40?

Card payment at time of booking via the app

Miss.Twizz

born_again said:

Miss.Twizz said:

Undervalued said:

Miss.Twizz said:

Has anyone had any success getting a salon "non refundable booking fee" refunded?

Long story short I've had to cancel several appointments due to unexpected relocation. Appointments were made months in advance and the first one is still over a week away at the time of cancelling. The salon holds a rolling deposit to cover no shows or late cancellations (fair) however they state in their T&Cs it's "non refundable". However under the guidance of what constitutes a fair/unfair contract term, it is clear that a business is only entitled to keep an amount sufficient to cover their actual losses that directly result from a cancellation. With the popularity of evening appointments and the considerable notice for cancellation, these appointments will easily be filled by other customers. Therefore there will be no loss to justify keeping any deposit amount. According to citizens advice "Typically, a business has no entitlement to keep any amount that can be saved by finding another customer, this would constitute an unfair contract term."

The salon state that because it's "non refundable" they retain this if you cancel within 48 hours (again fair) but only offer a gift voucher for the deposit amount when cancellations are more than 48 hours in advance, even in my case over a week's notice! For me this is just the same as unfairly retaining my deposit because I will be unable to use a voucher due to relocation. This doesn't seem right to me at all. Does anyone have any advice? All help much appreciated! 

Plus a reasonable amount to cover the admin involved in dealing with the matter (plus any extra advertising etc - probably not relevant here).

Also if you took them to court how are you going to show, on the balance of probabilities, that they did in fact manage to rebook your cancellation?

No admin involved, all booked via a booking app and cancelled in a click of a button, 30 seconds at most. No advertising, there would be no need for additional advertising, evening appointments are snapped up. As for proof they're filled, that could be done easily with their own online booking app showing no free appointments available because they'd be filled in a shot by other customers. I can see the one I cancelled next week is already unavailable, someone else has already booked it. 

You are missing the cost of the APP, the fact someone has to check & change schedules at their end. There has to be human interaction at some point.

Customers can book and cancel appointments themselves via the app. Once cancelled it's available again on the app for another customer to book themselves into.