SG
Sizwe G

1 reviews | Active since Aug 2019

18 Oct 2021, 16:23

************ Business Tactics

Clearance Warehouse is staffed with people who feel they are above law and who have no regard for the rights of the customers despite the fact that the ConsumerProtection Act 68 of 2008 for has been in existence for more than 10 years now.

I lay byed a dining room suite that is worth R16950 from Clearance Warehouse in Centurion on 28 August 2021 and paid an initial deposit of R9000. A month later, on 2 October 2021, I paid a further R4200 towards my lay bye. Shortly after this, the deal for the property that I was intending moving into fell through and I sent an email to Clearance Warehouse canceling my lay bye and requesting a refund of the R13200 that I had already paid minus the prescribed 1% penalty for cancelation as stated in section 62(6) read with Regulation 34(1) of the Consumer Protection Act.

I then received a reply from Clearance Warehouse that the cancelation fee is 10% and that they will subtract the 10% and refund an amount of R11800.

I responded to their email and drew attention to the above-mentioned section of Consumer Protection Act and they are acting in voilation of the Act since the Act says they can't charge a penalty of more than 1%. They responded and said the 1% is the penalty and the 9% is for the admin fees.

Retailers like Clearance Warehouse use tactics to avoid complying with the law. The Act is explicit in that a penalty for canceling a debit order can not be more than 1%

0
Replies (4)
Clearance Warehouse Africa
Clearance Warehouse Africa's reply18 Oct 2021, 16:52
Official
Good day Sizwe, this was a Lay-By contract undersigned by Thandeka Skhosana stating very clearly on page 2 that she agrees to make payments on specific dates and that she agreed to the amount being paid she also undersigned and initialed that a 10% handling fee of the full purchase price paid to date will be charged should this Lay-By contract be cancelled. By law 1% penalty is charged, but 9% is for all admin/handling fees charged by CWA. This amounts to 10% which have been approved by high empowered Attorneys. Please refrain from bringing our company's name in disrepute or legal action will be taken.
SG
Sizwe G's update18 Oct 2021, 18:14
Reviewer Update
Im not bringing any company into disrepute, I' m stating facts. What justifies your company charging 9% admin fee, when the prescribed cancelation fee is 1%. You charged R1300 for you to pay back money I paid to you. Its not like couches start getting made before the full purchase price is paid. I suppose threaten cu
SG
Sizwe G's update18 Oct 2021, 18:17
Reviewer Update
I suppose threatening your customers is what you prefer to do rather than complying with the law and treating customers fairly. Your contract does not supersede the law but well let the Ombudsman decide if your contract is legal.
SG
Sizwe G's update18 Oct 2021, 18:23
Reviewer Update
I don't know who Thandeka Skhosana is that you are referring to but you are more than welcome to institute legal action.