Legal re: hotel deposit
Author
Discussion

AngryApples

Original Poster:

5,449 posts

295 months

Saturday 30th January 2010
quotequote all
Hi all,

anyone know what the situation regards a hotel refusing to refund a (quite large!) deposit is?

Granted, they stated "non refundable" at booking, but due to personal reasons I'm unable to use the booking so I have cancelled (giving some 7 months notice, I might add!)

Have they any valid legal reason to hold the deposit?

Seems to me I could state anything when selling something but it wouldnt make it legal

I feel they have plenty of time to re sell the room,and just think they are being unreasonable and possibly "on the make"

Nickyboy

6,825 posts

264 months

Saturday 30th January 2010
quotequote all
They dont need a legal reason, it states in the terms "non refundable"

AngryApples

Original Poster:

5,449 posts

295 months

Saturday 30th January 2010
quotequote all
Thats the point, just because its in the terms it doesnt always make it legal

If, as I suspect, they have already re let the room they are making what I believe may be an unlawful gain

Nickyboy

6,825 posts

264 months

Saturday 30th January 2010
quotequote all
It would depend on how binding their terms are, booking will mean agreeing to the terms.

I'm sure if you persued it you may get it back but chances are it would cost you more to do so

robinhood21

31,145 posts

262 months

Saturday 30th January 2010
quotequote all
Do they not have to make a reasonable attempt at reselling the booking.

SJobson

13,851 posts

294 months

Saturday 30th January 2010
quotequote all
Nickyboy said:
They dont need a legal reason, it states in the terms "non refundable"
Doesn't mean it's a valid term - if there's no consideration on the part of the hotel then the contract may be considered void ab initio and they will have no right to retain the deposit.

Got a friendly solicitor who can advise based on all the facts, and write them a letter?

Wildsea

1,855 posts

240 months

Saturday 30th January 2010
quotequote all
Can't you claim on your travel insurance?

AngryApples

Original Poster:

5,449 posts

295 months

Saturday 30th January 2010
quotequote all
I believe penalty law comes in here, they can only charge a penalty as great as their loss and I dont think they have lost anything

VetteG

3,236 posts

274 months

Saturday 30th January 2010
quotequote all
All are presuming its a UK hotel, is it?
Seems to me that you were aware of the terms of the contract you entered into i.e. that the deposit was non-refundable and the size of that deposit, the cancelation was also an option that you took up despite knowing the terms you had agreed.

G

AngryApples

Original Poster:

5,449 posts

295 months

Saturday 30th January 2010
quotequote all
Any penalty in a contract may be found unlawful if not a genuine estimate of loss

"A sum specified in a contract as payable on its breach but not constituting a genuine estimate of the likely loss. Case: Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [ 1915 ] AC 79 (HL)"

Spudler

3,985 posts

226 months

Saturday 30th January 2010
quotequote all
Worth pursuing, but i think its unlikely. For the small extra cost of taking out the cancellation option, i always cover myself.

anonymous-user

84 months

Saturday 30th January 2010
quotequote all
Did you get the room cheaper by chosing the non-refundable option? If so that could be regarded as consideration, ie you have already had something for the money that you have paid, the right to have the room at a cheaper than standard price, you have chosen not to exercise that option.

NDA

25,659 posts

255 months

Saturday 30th January 2010
quotequote all

As already mentioned, if something in the contract is, essentially, unfair, you might have a chance. I had something similar a few years ago and won... Is this a major hotel chain or a small independent? Credit card booking/deposit?


voyds9

8,490 posts

313 months

Saturday 30th January 2010
quotequote all
Suck it up. You were aware of the terms and happy enough to book the room when it suited you, don't get all whiny now you want to change something.

SJobson

13,851 posts

294 months

Saturday 30th January 2010
quotequote all
AngryApples said:
I believe penalty law comes in here, they can only charge a penalty as great as their loss and I dont think they have lost anything
Don't think it's a penalty - it's a principal sum.

Busamav

2,954 posts

238 months

Saturday 30th January 2010
quotequote all
What hotel chain is it ?

GKP

15,099 posts

271 months

Saturday 30th January 2010
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Can't you 'sub-let' your booking and try and punt the deposit/booking onto a friend etc?

AngryApples

Original Poster:

5,449 posts

295 months

Saturday 30th January 2010
quotequote all
Hi,

not a chain its an independant

And the reason I'm so miffed is I believe they have now relet the room at the full price (in any case, they had 8 months notice!)

There was no discount for it being non refundable, that was due to the fact it was a very popular time on the area calendar, hence why they appear to have re let the room so quickly

Mojooo

13,291 posts

210 months

Saturday 30th January 2010
quotequote all
I dont think the consideration part comes into it

OP promised money and Hotel promised room.


It might be an unfair contract term thoo

see 4.6
http://www.oft.gov.uk/shared_oft/reports/unfair_co...

annexe:

http://www.oft.gov.uk/shared_oft/reports/unfair_co...

C O Jones

1,233 posts

297 months

Sunday 31st January 2010
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You are unlikely to get your deposit back, the only way to get even is to contact them a couple of days beforehand and let them know that you will be taking up the room (as they have kept yopur deposit). If they have re-let your room then you have a good chance of getting your deposit back.

Russ