Ask Me Help Desk - Refundable Deposit Law

I recently phoned a car dealership and arranged to go and see a car I was interested in. They told me it was their policy to take a deposit over the phone, and that they would then hold the car for me and not sell it to anyone else. I was a bit sceptical, but they assured me I'd get the money back if I didn't buy the car.

I went to see the car and wasn't happy with it, so they said they'd refund me within 5 days. I didn't get the money back, so called them and they said there had been a problem and that they'd refund it and I'd receive it in the next 3 days. It has now been 3 days and I still don't have the money in my account.

Please could you tell me where I stand with this legally - I gave them my card details over the phone but didn't sign anything...

Thank you.

Sorry you have been cheated,

No a deposit to "hold" something is seldom refundable, and of course over the phone you don't have one bit of proof, When they could not give it back, did you get a receipt in writing saying they would give it.

The obviously figured you did not know better and that they could take advantage of you for not knowing better.

Credit card over the phone is done all the time,
Call the credit card company NOW, and dispute the charges ASAP.

The only thing I can say at this point is that you are lucky they did not take more out since they have your numbers

Hello want:

File a claim in small claims court. It's cheap, quick and easy.

excon

Quote:

Originally Posted by want my money

I recently phoned a car dealership and arranged to go and see a car I was interested in. They told me it was their policy to take a deposit over the phone, and that they would then hold the car for me and not sell it to anyone else. I was a bit sceptical, but they assured me I'd get the money back if I didn't buy the car.

I went to see the car and wasn't happy with it, so they said they'd refund me within 5 days. I didn't get the money back, so called them and they said there had been a problem and that they'd refund it and I'd receive it in the next 3 days. It has now been 3 days and I still don't have the money in my account.

Please could you tell me where I stand with this legally - I gave them my card details over the phone but didn't sign anything...

Thank you.

I don't know about over the phone deposits but the whole "deposit" thing must be something new in the auto business.

I went in to test drive a new car I had seen on the lot. Was interested primarily in a summer car and this was a nifty convertible, two seater, great car. I have an earlier model which I was intending to trade.

Before I could take it on a test drive they wanted a "good faith deposit" to - as they put it - "discourage people with nothing better to do" from testing driving the car. I never got into the refund details because I absolutely couldn't believe it! I was leaving MY car there while I test drove THEIR car! I had parked at the far end of the lot so they didn't see or recognize my car - as if that's the only car they ever sold anyone and it would be familiar to them.

I will mention that my husband had purchased at least 10 cars from this same dealership but they never asked my name and didn't know me.

Needless to say - no deposit and I left. The salesman said he would ask the sales manager if they could to outside the policy "for me."

The head of the dealership later called me, all apologies, attempting to explain the policy which, according to him, is in place to separate the people who can actually afford the car from the people who cannot.

I obviously - in the eyes of the salesman and, perhaps, my banker - could not afford the car. I most definitely was in jeans, t-shirt, ponytail and baseball cap because I was coming home from working the road.

If I was furious before I got the phone call, I was livid afterwards!

Now it's funny - it was most definitely not funny then. And they possibly lost a sale.

I'm truly amazed at the scams car dealers come up with lately. This one is sure a dilly.

Quote:

Originally Posted by Fr_Chuck

sorry you have been cheated,

no a deposit to "hold" something is seldom refundable, and of course over the phone you don't have one bit of proof, When they could not give it back, did you get a reciept in writing saying they would give it.

The obviously figured you did not know better and that they could take advantage of you for not knowing better.

credit card over the phone is done all the time,
Call the credit card company NOW, and dispute the charges ASAP.

The only thing I can say at this point is that you are lucky they did not take more out since they have your numbers

The most frustrating thing is that when he was on the phone, he could hear that I was really dubious about it, and kept reassuring me that I'd get it back.

No, I haven't got anything in writing at all. I asked him to email me to tell me that he was going to issue the refund, but he hasn't done - which to me is a massive sign that he isn't planning to.

I guess you're right - I should just think myself lucky that it's not more... I'll see if the credit card company can do anything about it, but I think they'll just tell me I was a fool!

No they won't. You acted in good faith. The credit card company should, at the very least investigate. There is a good likelihood they will credit your account. This is one of the advantages of using credit cards. If this dealership has been pulling this on others, the card issuer could pull their merchant agreement. As soon as they missed the first deadline I would have called the card company.

I had a similar situation where my card was used for admission to an event. For reasons I won't go into, the operator of the event told us we shouldn't have been charged and would refund the money. After waiting a bit and the money not being refunded I called the card issuer, explained the circumstances and asked for a refund. They put a hold on the charge and 30 days later I had my refund.

I absolutely agree to call the credit card company ASAP!

Also, I know it doesn't feel like it's doing much, but PLEASE call the Better Business Bureau, Chamber of Commerce, etc. File a report against these shady characters. If it helps prevent someone in the future from being "taken for a ride" (no pun intended) it would be worth it. Plus if they happen to be members of those organizations they'll get called out right quick, and I can say with a fair amount of confidence that your chances of getting your refund would go up.