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Land of Leather: cancellation rights?


Angryguy2007
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Can anyone help?

I have ordered a suite from LOL at a cost of £699 + £160 5 yr gold cover

Total £859

I have paid £500 deposit even though i was only asked to pay 10% as i fully intended to purchase the suite and thought i might as well pay while i had the cash? (looking back it was a mistake).

I have recently been made redundant and cannot afford the £359 + £59 delivery, i could also do with the £500 back.

I rang LOL and told my story and they said i must pay 20% of the total which works out at £171.80. (The suite is still 4 weeks away from delivery)

So just a couple of questions:

Can they charge me this much?

Can they charge me anything for the 5 yrs cover when im cancelling the damn suite?

help please! :(

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You are in breach of contract so they are able to charge you reasonable damages to cover their losses; however 20% seems too steep and I would argue this with them if I were you.

 

Sorry don't have time to detail more just now but will do so when I am online properly.

Please note I'm not insured in this capacity, so if you need to, do get official legal advice.

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This is exactly the bank charges penalties issue.

 

As Rosie says, they are only entitled to cover their losses which you have caused.

 

Was the suite which you ordered anyhing different to their standard repertoire? If it wasn't then it is clear that if they have started making it already, they will be able to sell it to someone else and so no losses will have been incurred there.

They want 20% of the total including the cost of insurance cover?

Definitely not.

There are no losses as there is no insurable risk to be covered as yet.

 

I can fully imagine that absolutely no work has been started on the construction of the suite so far - in which case no losses have been incurred other than some very marginal adminsitrative costs of completing paperwork and so forth.

 

I would suggest writing to them asking them if they can explain what their actual losses amount to, how many days before delivery to they actually commence production of the suite and also in what way have they incurred a 20% loss of a non-existent insurable risk.

You won't get answer or at least you won't get any explanation. In your letter, give them 14 days and tell them that after that you will be sending them a 7 day LBA.

Use some of the wording from our preliminary bank charges letter to help you.

Then send your promised 7 LBA and then sue them.

Only make these threats if you intend to carry them out.

Otherwise don't bother.

 

On the insurance issue, this is an outright swindle in my view and I would write a letter of complaint to the Financial Ombudsman who will be pleased to have something to take his mind off bank charges

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Bear in mind though that this differs from bank penalty charges slightly in that they can include an element for loss of profit.

 

Many companies charge 10% cancellation fees, this is based on OFT guidelines but is still challengeable in court and I know of several consumers who have successfully done so and had their damages reduced to less than 10% or on occasion had a full refund.

 

However this will not apply to the insurance - they should not be charging you for insuring something that does not exist.

Please note I'm not insured in this capacity, so if you need to, do get official legal advice.

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Bear in mind though that this differs from bank penalty charges slightly in that they can include an element for loss of profit.

 

Sorry. I disagree

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I had to deal with LOL on behalf of my mother who is 63. She ordered a suite from them and the next day wanted to cancel. She had no cancellation rights according to the agreement she had signed as this was a 0% finance deal if paid off withing 12 months. Anyway she was asked about credit protection and she said she did not want this, my sister witnessed this. I did not even call their store, I went direct to their HQ, think it was in Kent. Anyway I told them my mother wished to cancel and was told by customer services person that she could not. I asked to speak immediately to their compliance manager, what a change of attitude from them, they S*** a brick. I spoke to their compliance Mgr who was actually very polite and also very helpful. I explained that I am qualified to sell insurance and finance products in my own job and that I am FSA registered and accredited. I told her that my mother had been mis-sold credit protection that she would never ever be able to make a claim on as she is not working. I stated that I would make a formal complaint to the FSA directly if this matter was not resolved and her £800 deposit returned. Their comp mgr said a full investigation would take place and that she would inform the regional mgr scotland. I asked for her email addy and then i confirmed everything in writing and gave LOL 7 days to respond. They did not. I called them 8 days later and was told the investigation was ongoing. I told them that their internal investigation was none of my concern and that it was upto them to deal with any member of staff accused of mis-selling financial products. I also stated that if their sales rep called my mother once more then I would personally go and speak with him at their store. (hint hint, he would not have enjoyed this!) I also told them that I was working to my timescale and not theirs and that the seven days had expired and that I had already drafted a formal complaint to FSA. I was told I would be called back later that day. I was called at 4pm and informed, order cancelled, staff member disciplinary procedures invoked and full refund of £800 would be sent out. Deposit cheque arrived two days later. Maybe this is an option for you if you genuinely believe you have been mis-sold 5 years gold cover.

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Excellent.

 

That is what I would call Consumer Action in action.

 

Don't worry about cancellation rights. The idea is that you breach the contract by not going ahead with it and then restrict their remedy to their actual costs.

 

People should understand that they cannot trust these stores and these schemes.

If they want to know what rights they have then they should come here.

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my 2p worth regarding land of leather:

 

I got my suite delivered a day late beginning of december. Found a fault with one of the reclining mechanisms, phoned LOL to repair it, they duly sent out a repairman (1 day off work) to fix... "a scuff on the leather." this was the week before xmas, so I phoned them again and they said, "we'll have to wait for the paperwork to come back from the repair agents." I left it about 4 weeks then gave them another call, "they then stated that the parts were "on backorder from italy" so I waited a further 5/6 weeks, phoned them again and after much to-do got through to the store manager. Basically told him he had a week to sort it out, as I had had enough of them messing me about. Lo and behold 2 HOURS later, a repair firm were on the phone booking a date with me to come out and fix it! All sorted now.

 

Matt

Power tends to corrupt; absolute power corrupts absolutely - Lord Acton.

 

Advice offered by MattyH is without predjudice and is for your judgement as to whether to take it. You should seek the assistance or hire of a solicitor or other paid professional if in doubt. Please research any information I have offered, as I will not be held liable for any incorrect advice i've given you.

 

<--------- If my advice has helped, please tip my scales. 8)

 

For Further advice come into the Chat Room: http://www.consumeractiongroup.co.uk/forum/chat/flashchat.php

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Bear in mind though that this differs from bank penalty charges slightly in that they can include an element for loss of profit.

Are you sure about that? I'm not expert but I think that they can only charge for quantifiable losses.

 

I think loss of profit might be appropriate if they could show that they had lost another sale because of the breach of contract - as could be the case if there was a single item which had been removed from sale once the deal had been made - but I don't see how it can apply in this case

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No, they can claim for loss of profits and I have seen several cases where this has been awarded.

 

However it is usually kept to a minimum and is dependant on the individual case circumstances. I've seen one person get their money back in full. The others tended to be around £300 awarded as costs on a c. £8000 contract, on average.

Please note I'm not insured in this capacity, so if you need to, do get official legal advice.

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I can only say that in that case the claim/defence was not argued on the basis of a penalty.

 

I agree with bed32 that if there was a demonstrable loss of a sale, there could be a basis of some colnsequential award. On the other hand if the item is subsequently sold and the profit is made later then there is a betterment which would be repugnant to the court.

 

Maybe the claim in this thread will allow us to see what happens if the issue of penalties is raised.

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No absolutely; if they resell the same suite then you could argue that there were no losses as they cannot profit twice, however their argument would probably be that if the suite was sold to someone else, that person would have ordered another one anyway (if you see what I mean) so they have still effectively lost a sale.

 

It would ultimately depend on the judge on the day regarding what is awarded, judges can differ in their opinions on this matter. In any case, there is no way they would get away with claiming 20% or for the insurance.

Please note I'm not insured in this capacity, so if you need to, do get official legal advice.

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I'm going to write a letter hand it in at the store and see what they say?

i'm also gonna ask them to remove the £160 for the insurance as i have not even recieved the certificate yet?

thanks to everyone for there help..... fingers crossed.

 

also the suite was £699 so if they resell it now they will make more profit as the suite now retails at £1199?

 

i'm hoping to get them down to 5% but even 10% will do :)

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also the suite was £699 so if they resell it now they will make more profit as the suite now retails at £1199?

 

i'm hoping to get them down to 5% but even 10% will do :)

I'm no expert - I am sure there are people here who are better able to respond but FWIW:

 

I think you should ask them to detail the actual losses/costs they think they have incurred. If they can't then I don't think they can charge you.

 

I would think they could charge you a reasonable amount for the administrative costs - plus potentially a re-stocking cost if they can show that they've ordered materials for the job (e.g. an unusual fabric) that they cannot cancel or reuse. Should they actually have started work it would be more complex but 4 weeks before delivery it seems unlikely.

 

I don't think in this case they can charge you for loss of profit - but there are more experienced people here who suggest that they may be able to. However by asking for the breakdown of the costs you are forcing them to tell you.

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