How do you know when a customer is owed a refund?

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How do you know when a customer is owed a refund?

We did a transmission overhaul on a customer’s transmission. We have been trying to resolve a computer problem also. They feel we have had their car long enough and want their deposit back. We are willing to not collect the money still owed on their invoice, which is a considerable amount but they want their money back. We did not know there was a computer problem with the vehicle when we started the job and we have put out more money on their vehicle than they have paid us. Do we owe legally owe them a refund?

Asked on March 29, 2012 under Business Law, Oregon

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Whether you an a mechanic legally owe the customer a refund with respect to the work dfone on his/her car is best determined from the presumed written estimate that you submitted before work on the vehicle was ever started. I suggest that you carefully read the estimate in that it controls the obligations owed between you to the customer and vice versa.

From a customer relations protocol, you might consider refunding all money paid by the customer and move forward. You might end up with a happy customer saying good things about you and your business in the community.

 


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