Can a Nursery keep my money?

[Monadami]

Hi,

Is anyone here clued up on Consumer Rights, as I would appreciate some advice?

Last week we went to see a nursery seeking a place for our 18 month old. When we finished viewing I wasn't really sure but my Partner agreed to pay £100 deposit for a place. The deal was if you paid on the day of viewing, the refundable deposit would be reduced by £100.

Anyway, the following day we viewed another Nursery, which we both preferred and decided to go with that one. When I called the first Nursery to say we'd changed our minds and enquired about the Deposit, I was told it was not refundable.

I called Consumer Direct today and they seem to think what the Nursery has done is wrong and sent me a Template letter, which states they re in breach of contract. However, we did not sign any contract at that point, but looking at their Terms & Conditions, they do state if a place is not taken up, the Deposit is non refundable. Regardless of this, is this actually legal for them to state this and just take £100 from us, even though they have not provided any kind of service?

Thanks

If they told you at the time it was refundable then it matters not what is in their written terms. The problem is proving it. Is there time to stop the cheque?

But surely you had a verbal contract and I'm sure the same 7 day cooling off period applies.

Where does the 7 day cooling off period come from?

The deposit will be to cover them for people who do not take up the place (like you have not). It might be worth finding out if there is something legal about cooling off periods though.

I know there are cooling off periods for distance selling but I've never heard of them for something like this.

I am not aware of any statutory provision for a cooling off period in this case.

It is sometimes possible to challenge the terms relating to a deposit under the Unfair Terms in Consumer Contracts Regulations, but this is only usually successful if the terms say 'the deposit will not be refunded under any circumstances' or some such: if the terms say 'if the place is not taken up the deposit will not be refunded' then in general the term is not unfair within the meaning of the regulations.

You should have read the terms and conditions before handing over your money. Sorry to be harsh, but it is clearly stated. That you were told something different will be hard to prove.

You did not sign a written contract with the non refundable clause attached, so are not bound by it.

The binding contract is the verbal one under which the deposit is refundable.

Send a letter pointing this out.

It would even be worth pursuing this in Small Claims if they won't cooperate as the threat of a CCJ against the business would cause them problems. Would not be worth it to them for £100 I would have thought.

A "cooling off" period won't apply as you were on their premises.

But I found your account of what they said confusing. Is the usual deposit £200 (reduced to £100)? Or was this some other payment (registration fee) which would reduce a future deposit (payable on acceptance of place) by £100?

And what were the T&C of the refundable deposit? Normally, they are refundable against the last billing period (and forfeit if the place is not taken up). Registration fees are usually non-refundable.

As OP didnt sign a written contract saying the deposit was non refundable cooling off periods etc don't apply.

The Op had a verbal assurance that the deposit was refundable and so it should be repaid.

A verbal contract to refund the money is legally binding. It would have been easier to prove if it had been in writing and signed. I learned that lesson a long time ago -everything in writing!

Thank you everyone for your input. My Partner paid the £100 and doesn't seem too bothered it won't be returned, so I probably won't take things further. But yes I should have read the T&A's

It might be worth asking anyway as a refund was verbally promised.

Probably not worth pursuing if they get difficult.