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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 50161
Experience:  Qualified Solicitor
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july2013 I paid £500 deposit on a new car from skoda it would

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july2013 I paid £500 deposit on a new car from skoda it would not be available to me until November 2013 unfortunatley during this time I was taken ill and had to have a pacemaker fitted and was advised not to drive for a while so I cancelled the order but the garage wont give me my deposit back they have not even replied to the letter I sent nowhere in the terms and conditions does it state a refund cannot be given due to ill health.

Ben Jones :

Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today. What does the agreement say about cancellations and deposit refunds in general?


it states that if the car is not collected and paid for in 28 days then it will be cancelled and any deposit will be kept but I informed them of the situation before the 28 days in fact they were informed before the car arrived at the garage.

Ben Jones :

Generally, when a person places an order for something and pays a deposit they enter into a legally enforceable contract with the seller. It is implied that the seller has accepted the deposit as security and as proof that the buyer wants to proceed with the contract.


Unless the seller subsequently commits a serious breach of contract, or there was a cancellation clause, the buyer would have no legal right to cancel the agreement and if they do so they will be acting in breach of contract and risk losing their deposit. This is especially true if the deposit was described as non-refundable.


If this was a business seller, they will be subject to certain consumer rules and regulations. For example, you will have some protection under Schedule 2, Regulation 1(d) of the Unfair Terms in Consumer Contracts Regulations 1999. It states that if the contract has been cancelled after a deposit has been placed you are entitled to have the deposit returned in full, unless the seller has spent time, effort and money, in which case they can deduct reasonable expenses. Even if some expenses have been incurred, if these are subsequently recovered, for example by selling the item to someone else, the deposit should still be returned in full. It follows that a blanket non-refundable clause that entitles the seller to keep the deposit in all circumstances is most likely going to be unfair and unlawful.


If you are having difficulties in recovering the deposit when you believe you are entitled to have it returned, advise the seller that you will not hesitate reporting them to the Office of Fair Trading and, if necessary, pursue the matter further through the county court. Exerting such pressure could often work in changing the seller's position in this matter.


Ben Jones :

Before you try and exit chat can you please let me know if your original query has been answered or if you need me to clarify anything else in relation to it before I close this at my end?


Thankyou for your advice I will write to them again explaining what you have told me and see if that works

Ben Jones :

You are most welcome and best of luck. Please take a second to leave a positive rating for the advice I have provided as that is an important part of our process. Thank you and feel free to bookmark my profile for future help:

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