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evans88

Are Deposits Protected

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I posted this question on a vehicle forum but on reflection it is more appropriate to a general consumer forum as it concerns the way in which deposits are held by retailers and the protection afforded to consumers.

 

 

In October I ordered a new motorhome from a major motorhome dealer. The vehicle will not be available until May 2010. I paid a deposit of £2000 but also early part exchanged my existing motorhome valued at £17000.

 

It was my understanding that the total of £19000 was protected under consumer legislation in the event of the Company going into liquidation but I've recently come across something suggesting that deposits of this nature have no protection whatsoever.

 

Can anyone advise.

1. Whether there is any protection afforded to deposits in the event of a Company ceasing to trade and;

 

2. Am I entitled to the value of the motorhome I have traded in (valued at £17000) returned until my new vehicle is available for collection.

 

Many thanks.

.

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No - they are not protected. Additionally, how can you expect protection for the value of your existing 'van when you still own it? Your deposit of £2k confirms your order, in the absence of them offering to protect the amount, you could use a credit card to protect your financial interest.

 

As a trade in, your vehicle HAS no value in the transaction until the agreement is arranged - when you take delivery of the new one. Also, your delar will certainly juggle the figures, dropping the trade in value bt £2k (at least), whilst doing the same to the agreed purchase price of the replacement 'van. The amount owed then remains the same. You talk in the past tense of having traded it in, you haven't - it is still yours and much could prevent you going so, a theft/accident etc prior to the deal being formally completed.=, therefore you have no rights to any value within it until the new takeover day.

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Thanks. I probably did not make the position sufficiently clear. I have already handed the vehicle over; it is no longer in my ownership. It has been sold by the dealer. The money is with the dealer; hence my question although the dealer is one of the largest in the UK and I'm not overly concerned.

 

But it seems to me that if there is no protection for deposits then something should be done about it as many people must have lost money when firms have gone into liquidation.

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Ah - if they had pre-sold your old van, that makes sense for them, but do watch for the recalculation (and find out what they actually did SELL it for!).

 

You'll still be exposed to risk - but with M/H dealers they're normally pretty stable, but never say never. Only licenced deposit takers are required to have protection, anything is a commercial arrangement - and you could certainly ask them what protection you have as you have concerns, they may have the funds ringfenced as part of a local initiative, but it certainly isn't mandatory.

 

Hope the new vwhicle doesn;t have too many snags.... and won't leak! :)

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sometimes there are schemed in place. I think (but am not sure) that there is some sort of motor dealer ombudsman type scheme that might give you some protection, like the OFT codes of practice. Worth checking. Sometimes there is the odd weird scheme in place, for eg abta, qualitas furnishing standards etc. These can give some protection.

 

You'll probably be ok. Always worth using the credit card, though.

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