G
GRATHAL
New Member
Just to relate my experience of losing approx £5,000 (euro 7,000) after using Homes Dubai, a Manchester-based property agent and the currency broker, HIFX.
In January, I reserved a £30k studio apartment in the Al Salam City development close to Dubai in the UAE. The salesperson had me fill-out a reservation form and promised the actual purchase agreement from the developer would be issued within 30 working days. I immediately paid a non-refundable deposit and the first installment payment.
The first installment payment was in Dirhams and had to be sent to an account in Dubai, so the salesperson repeatedly recommended that I use the services of HIFX, a currency broker, even providing a reference number to quote. On that advice, I called HIFX to arrange the first installment payment. Although I repeatedly told their dealer that I had not received the formal purchase agreement containing the exact amounts and dates of payments, he still offered to enter me into a legal contract to purchase, in advance, the entire estimated total purchase price in AED using estimated installment payment dates. Trusting his judgement, I foolishly agreed. As well as the initial installment, I was then obliged to transfer a large deposit for future payments.
Later the same day, I informed the dealer again by e-mail that I had not received the sales contract from the seller so the amounts and dates would need to be modified sometime in the future. He promptly called me to say that he was "very concerned" to hear that. However, a short time later he again called, stating that he had spoken with his superior and that it would all be arranged "in my favour" (direct quote).
Now the bad part. By August I had still not received the sales contract from Homes Dubai. It was difficult to get any information from them, I was told that the salesperon I had dealt with had left. I was reluctant to send any more money to an account in Dubai without any contract, so I wrote to cancel my reservation and request a refund. Their MD refused any refund.
Simultaneously, I attempted to contact the dealer in HIFX to cancel that contract but he too was now working elsewhere. His replacement informed me that I had legally committed to buy the entire estimated purchase price in AED and to close the contract, the AED would need to be sold back to HIFX - with a loss of several thousand euro on my part given the intervening fall in the value of the US dollar (to which I learned the AED is linked).
I complained to HIFX on the basis that the dealer should not have offered me the initial deal, having being repeatedly informed that I was neither in possession of a sales contract, actual purchase price nor actual payment dates. Secondly, a loss could not reasonably be interpreted as an arrangement "in my favour". Thirdly, the dealer had again contacted me in June 2007 yet still failed to warn me of the mounting losses; even at that stage the losses could have been limited. Finally, HIFX have informed me that Homes Dubai are one of "their agents", a clear conflict of interest which Homes Dubai did not reveal to me.
In October, HIFX made a "final" offer to withhold my initial deposit and bear the additional loss, threatening further action if I did not agree within 24 hours. Desperate to limit my losses and fearful of their actions, I was compelled to accept their offer under protest. The loss borne by HIFX amounts to a paltry 100 euro...
As well as refusing a refund, Homes Dubai deny all liability regarding the currency loss and their advice to use HIFX's financial services.
So I now face a combined loss of approximately £5,000 or euro 7,500.
Please learn from my experience!
In January, I reserved a £30k studio apartment in the Al Salam City development close to Dubai in the UAE. The salesperson had me fill-out a reservation form and promised the actual purchase agreement from the developer would be issued within 30 working days. I immediately paid a non-refundable deposit and the first installment payment.
The first installment payment was in Dirhams and had to be sent to an account in Dubai, so the salesperson repeatedly recommended that I use the services of HIFX, a currency broker, even providing a reference number to quote. On that advice, I called HIFX to arrange the first installment payment. Although I repeatedly told their dealer that I had not received the formal purchase agreement containing the exact amounts and dates of payments, he still offered to enter me into a legal contract to purchase, in advance, the entire estimated total purchase price in AED using estimated installment payment dates. Trusting his judgement, I foolishly agreed. As well as the initial installment, I was then obliged to transfer a large deposit for future payments.
Later the same day, I informed the dealer again by e-mail that I had not received the sales contract from the seller so the amounts and dates would need to be modified sometime in the future. He promptly called me to say that he was "very concerned" to hear that. However, a short time later he again called, stating that he had spoken with his superior and that it would all be arranged "in my favour" (direct quote).
Now the bad part. By August I had still not received the sales contract from Homes Dubai. It was difficult to get any information from them, I was told that the salesperon I had dealt with had left. I was reluctant to send any more money to an account in Dubai without any contract, so I wrote to cancel my reservation and request a refund. Their MD refused any refund.
Simultaneously, I attempted to contact the dealer in HIFX to cancel that contract but he too was now working elsewhere. His replacement informed me that I had legally committed to buy the entire estimated purchase price in AED and to close the contract, the AED would need to be sold back to HIFX - with a loss of several thousand euro on my part given the intervening fall in the value of the US dollar (to which I learned the AED is linked).
I complained to HIFX on the basis that the dealer should not have offered me the initial deal, having being repeatedly informed that I was neither in possession of a sales contract, actual purchase price nor actual payment dates. Secondly, a loss could not reasonably be interpreted as an arrangement "in my favour". Thirdly, the dealer had again contacted me in June 2007 yet still failed to warn me of the mounting losses; even at that stage the losses could have been limited. Finally, HIFX have informed me that Homes Dubai are one of "their agents", a clear conflict of interest which Homes Dubai did not reveal to me.
In October, HIFX made a "final" offer to withhold my initial deposit and bear the additional loss, threatening further action if I did not agree within 24 hours. Desperate to limit my losses and fearful of their actions, I was compelled to accept their offer under protest. The loss borne by HIFX amounts to a paltry 100 euro...
As well as refusing a refund, Homes Dubai deny all liability regarding the currency loss and their advice to use HIFX's financial services.
So I now face a combined loss of approximately £5,000 or euro 7,500.
Please learn from my experience!
