Refund of deposit

[Karen108]

Hi can you help ,I was selling a caravan ,a lady from other end of country wanted to buy asked her to view ,but she said it's ok spoke on phone ,also did video call showing caravan all her idea, agreed a price and she paid £400 deposit by PayPal, this was yesterday I send a message to confirm deposit received, she know messaged to say she didn't want caravan has she says her car won't be big enough ,how do I stand ,thanks 

[sharpiemarker · Accepted solution]

@Karen108

If there was no previous agreement that the deposit is non-refundable (I don't think the buyer would have paid the deposit if it was the case), then refund the money. Put yourself in the other person's shoes and do the right thing. You can relist and sell to someone else.

If the person files a dispute to get their deposit back, where you stand depends on the reason dispute is filed.

For Item Not Received, you won't be protected as there is no tracking number and vehicles are not eligible for seller protection coverage, nor is buyer protection cover for vehicles.

For Significantly Not as Described, again, you won't be generally covered as sellers have to accept a return before refunding but If there is nothing to return, that is another way PayPal may not rule for the buyer. Since the reason is buyers remorse related (changed mind), its possible PayPal may not rule in their favor.

If the buyer decides to file a chargeback with their card issuer instead, there is every chance you're forced to refund this money plus charged an extra fee for PayPal to handle chargeback. Or take you to small claims court.

All this is speculative but you will have to work to keep this money as I don't think the person will just give you that money for nothing.