The consumer’s issue:
“I placed an order to purchase a new 22-plate hybrid from a dealership in May 2022, and put down a £1,000 deposit. Due to issues providing payslips for proof of income to the business due to Coronavirus, the retailer advised me to cancel the order, and the salesperson explained that their manager would organise the £1,000 refund. However, after trying to contact both of these individuals, I am still waiting to get my money back one month later. I am therefore requesting a full refund of my deposit to settle my complaint.”
The accredited business’ response:
- As per the signed order form, the consumer put the deposit down for us to order a new vehicle. In the meantime, the finance provider declined the application because the consumer could not provide them with the information that they required.
- Another finance provider was sourced, and the application was accepted, under the same terms as the previous deal.
- We have tried to speak to the consumer on several occasions, but they have proved to be unreachable.
- The consumer is aware that they are not entitled to get their deposit back, as stated on their receipt.
- We still have their vehicle in stock if they want to make contact to organise the handover and to sign the finance agreement.
The adjudication outcome:
- The adjudicator reminded the dealership that, in line with The Motor Ombudsman’s Vehicle Sales Code, when a deposit is required, the terms and conditions of the deposit should be made available to the consumer.
- The adjudicator noted that there was no evidence submitted by the dealership which showed the consumer had been supplied with any documentation about the terms and conditions of the deposit, that it was non-refundable or that the consumer had signed any documentation stating that this was the case.
- In the absence of any such evidence which demonstrated the dealership had fulfilled their obligations, the complaint was upheld in the consumer’s favour, as a breach of the Vehicle Sales Code had been identified.
- Therefore, the adjudicator recommended that the business awarded the consumer a full refund of £1,000 to put this matter right.
Conclusion
- Both parties agreed with the adjudication outcome. The business agreed to pay the consumer £1,000 as recommended by the adjudicator, and the case was closed.
