Is it legal for a company to withhold a refund if the employee who sold the product is under investigation for fraud? | Lawhive - Solicitors & Lawyers Online
Is it legal for a company to withhold a refund if the employee who sold the product is under investigation for fraud?
Hi, I was hoping for some legal advice please. In May 2021 my husband and I paid a deposit for a kitchen. In October I contacted the company regarding some changes I wanted to make. I then found out that the person who sold us the kitchen no longer worked there but they would sort the refund. After months of being fobbed off we are still waiting. I've contacted Trading Standards and await their reply, HOWEVER, I finally received a message today from one of the owners. She has said that the employee who sold us the kitchen is under investigation by the police for fraud, theft and deception against the company and other customers. She says because of this she cannot refund the money until February, HOWEVER, the company is being dissolved in February due to debts etc. I feel like she's fobbing me off so that the company and its debts are wiped and we'll never see our deposit again. Does our deposit even have anything to do with a police investigation? Any help is appreciated. Thanks

Marion Searchwell

29th March 2022

Top Answer
NQ - this sounds suspicious and could be trying to avoid refunding you before the company is declared insolvent. Is the company still trading? If so the declaration the company will be getting dissolved is potentially illegal trading. How was your deposit paid? If debit card try to get a charge back and if credit card then s75 Consumer Credit Act should protect you. While I don't believe fraud by the employee on the company should affect you then they should if not just a fob off give you sufficient information to confirm with the police as they are claiming you are a victim of this fraud.

Karen Primm

29th March 2022

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