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Is "non-refundable" allowed where company had no intentions of shipping?

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dra1967pool

Junior Member
We live in Illinois and the contract states that it would abide by California and Los Angeles County laws. This involves a broker hiring a shipper to ship our vehicle from California to Illinois.
According to this contract it states that a $299 non-refundable administration fee would be charged in the event of cancellation. It also states that there are no set dates. Now, it was the company spoke person who specifically told us that we might receive our vehicle next year or never. To me "never" means that this company is a sham. Now I did find a California State law but it is a real estate law that states that "non-refundable" only applies when punitive damages can be proven. So, then how can this company get away with this? We have tried going through my bank and this company has done this under a previous name. The bank gave him back the money due to his "non-refundable" clause. We have found over 28 complaints across 6 websites and across 11 states. The m.o. is the same everytime that the company never delivers the vehicle. So, how can a company legitimately keep a non-refundable fee if no services were provided? And we were not the ones who cancelled the contract, the company is the one who stated that they would not deliver the vehicle! And we have tried to contact the BBB, California States Attorney, Illinois States Attorney. Also, I have found numerous other complaints with other shipping companies doing the same thing. Also, how does someone go about enacting a law to stop this from happening again? Because if this is legal then I am becoming a broker who will never deliver!:confused:
 


FlyingRon

Senior Member
Why do you think real estate law applies to shipping transactions?

The BBB is completely useless. It presumes the business CHOOSES to participate. The states attorneys aren't likely to get involved in most civil disputes.
Sue the guy in small claims. For practical matters, you will have to do so in the state where they are located if you want a prayer of collecting.
 

Zigner

Senior Member, Non-Attorney
For practical matters, you will have to do so in the state where they are located if you want a prayer of collecting.
And since that is where the contract was entered in to and also where the contract requires it.

I suggest that the OP go get his car.
 

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