Asking for Deposit

[NathanCk]

Hi,

Recently a customer cancelled a booking which is wanted to still go ahead with just last Thursday. The booking was taken in January and was due to start in March but she postponed due to the Covid situation.

She asked for her deposit back as it was "only to secure the booking" now it does state on my terms and conditions that deposits are none refundable. But at the bottom of the email I sent I said a deposit is required to secure your booking.

So my question is do I have to put at the bottom its a non-refundable deposit or is it enough to have just in the terms and conditions.

Also, I have my cancellation policy on the terms & conditions page on the site but do I need to put that on the invoice too?

TIA
Nathan

 

[kulture]

I would return the deposit.

 

[NathanCk]

The customer has accepted a credit balance to use at the later date.

I am asking about the wording, I can't get a definitive answer from google.

 

[billybob99]

Point people to the terms and conditions and next time state you'll require a non-refundable deposit.

 

[NathanCk]

Does that mean I should say a non-refundable deposit is required instead of a deposit is required?

That probably sounds daft, but I do have it in the T&C's its non-refundable.

 

[billybob99]

If you're going to mention it by dropping it into an email, then yes, make it clear its a non-refundable deposit - otherwise don't mention it at all and if someone kicks up a fuss, you can point them to your T&Cs.

 

[NathanCk]

Thanks for the advice, I usually hear the saying "the less said the easier mended" this situation reminds me of that.

Most of my sales are online but for a service so how would I ask for a deposit in this case? Or am I being stupid?

 

[billybob99]

I ask for a deposit for a service (software development) - I usually put the amount required for the deposit in the proposal, along with other payments and their dates.

 

[NathanCk]

See I use Wave Apps for my invoices so I have to write in the notes at bottom of the Invoice about the deposit. I feel it scares customers away when they see non-refundable.

 

[billybob99]

See I use Wave Apps for my invoices so I have to write in the notes at bottom of the Invoice about the deposit. I feel it scares customers away when they see non-refundable.

Yeah it would scare most away for sure - but what that implies is, the only way you can get business is by suggesting its a refundable deposit and if anyone kicks up a fuss, show them your T&Cs showing it says its non-refundable - and possibly get a pain in the ass saga that follows.

The question here is, why is it non-refundable and can you offer refundable deposits of any sort, i.e. if you cancelled within 1 week of starting you get a full refund, would it increase sales and conversions.

Without knowing what service you offer, hard to tell.

 

[2020Lawyer2020]

It is a difficult balance. Lawyers will always say make sure customer see the terms ideally again and again and again so a customer cannot see I never saw them, I never agreed to them, they don't apply.

It would be better if on your email you also say it is non-refundable for the future (if it is so) although even then trading standards prefer deposits are refundable depending on when a booking of something is cancelled eg lost 10% if cancel within first month, 50% after x months and a lot more if someone cancels something at the last minute. There is government guidance on Deposits and Advance Payments you can download from here - https://www.gov.uk/guidance/how-to-...sits-advance-payment-and-cancellation-charges. If terms are unfair under the Consumer Rights Act (where you are a business selling to a consumer) they may not be valid (even if you can prove the terms are the contract with the customer and were drawn to the customer's attention). The problem with this area of law is it is not always particularly clear.

 

[NathanCk]

Sorry for my late reply to this,

The customer opted for a Gift Voucher for future use.

I do offer the usually 14 days cooling-off period and my usual lead time is 12 weeks. But I don't do refunds at all outside the cooling-off period.

But my problem seems sorted now. Thanks for your advice and input.

 

[The Resolver]

On a wider general point, if the deposit was for a service that cannot be provided under lockdown, eg holiday home let, then whatever the contract terms, state the deposit (or payment in full) must be refunded due to the inability to provide the service on the dates booked (frustration of contract) . Credit notes can be offered, eg for a later booking, but cannot be forced on the customer. Any Force Majeure clause would at best , if effective and not all are, only protect the home owner/agency against claims for consequential damage not the return of monies paid.

 

[NathanCk]

Hi The Resolver,

It was for a Home Improvement Service, which could have been carried out. I should have mentioned she contacted me on Thursday 30th April to ask when we could get her booked in again for, I give her 2 dates we could do it. I never got a reply then on Monday 4th May she just sent a message "I am just going to cancel" now bear in mind I held the booking from January for what was supposed to be Work commencing 23rd March and she postponed already which I understood given the circumstances.

I do have a force majeure in my T&Cs thankfully.

 

[MBE2017]

I would also recommend you include something along the line of Any cancellation is subject to these terms or at the discretion of the company in exceptional circumstances. There might be times you will wish to allow cancellation even though your terms might not necessarily permit them.

Courts these days tend to use the idea any terms and conditions have to be clear, and obvious. So burying such terms amongst minute writing on the back of a contract in amongst loads of others might be overruled, no matter how fair they are.

I used to use it as a helpful close, asking for a signature to show that the cancellation policy had been clearly explained and they were happy to proceed. It used to help identify anyone wobbling in advance, and help overcome any concerns. Little point signing someone up for them to cancel the next day for instance. Worth getting a solicitor to draw up proper t+c’s for the future.