Paying a deposit

A deposit is a payment you make to show that you intend to buy a product or service. When you pay a deposit, you enter into a contract with the supplier. It's easier to know what your rights and responsibilities are if you have the contract in writing, but a verbal contract is also enforceable.

You and the supplier agree the amount of the deposit, when the balance has to be paid and when the product will be available. So make sure you are clear about all the details.

Retailer obligations
Be clear about the seller’s obligations, such as when the product will be delivered. If a seller informs you that a delivery will be delayed, you should try to agree a new, reasonable date for delivery.

If you cannot agree a new date, or the date they propose is way off what you originally agreed or they fail to meet the new agreed delivery date, you have a right to ask for your deposit back. If the seller refuses, you may have to take legal action to try to get the deposit back.

Remember, deposits are usually non-refundable. If you pay a deposit and then change your mind about the product or service, the supplier or seller may not have to return your deposit.

If the shop goes out of business
Remember, if you pay a deposit and the shop or seller goes out of business, it may be very difficult to get the goods or your money back. Your needs will not be a priority for the business if it goes into liquidation or receivership.

If you paid for the goods by credit or debit card, your card provider can reverse the transaction. This is called a chargeback. Contact your provider immediately and give them details of your transaction.