Haverty's Furniture Company ..FRAUD; BREACH OF CONTRACT

I disagree with a lot of the comments on this page......

The issue of whether this person's credit is good or poor is not the factor... They told this person they were approved, had this person sign a contract, and took this persons money.... the same way they done me and the only thing on my credit is deferred student loans....

On May 10, 2009 I entered Haverty's to purchase a Sleeper sofa, I completed an application for financing through Haverty's (you can either get financed through Citi Financial or Haverty's and they submitted me through Haverty's).

I completed the credit application, as requested and answered all questions concerning delievery, and completed the directions to my home to deliver the item. The salesman submitted my information and Drivers License to a lady at a desk in the back of the store, after telling me that she would submit my information for approval and if all goes well, this lady would let me know and the sales lady walked away. This lady that is entering my information requested my DL which she already had, after entering my information, the printer began to spit out a document. And she asked me for a down payment which was already explained to me that it would be 25% of my purchase, so that amount was $263.50, which included a $69 delivery fee, she then had me to sign a contract agreement that I agree to the terms offered and would make the monthly payments as agreed. I did that and she put my invoice which contained details and my contract in a holder and gave it to me and said that the furniture would be delivered on Tuesday. The sales lady said bye to me as I exited the store. I was given copies of the contract and a invoice receipt for the requested downpayment and the remianing balance that would be due over the 12 month period contained in this contract.

Approximately an hour and a half or twoo hours later, the lady that had done all this call me on my cell phone and tells me that I was denied financing and that the other option I could take was to do something that is not lay-a-way but kind of like it. Where they would keep the down payment and I pay the balance within 30 days. I told her I didn't want to do that, and that I would be by to see her. I went back to the store to this lady and told her that I was there to get my money back (which I had given her cash) and then tells me that they will be mailing me a check which would take about 3 days. She then tells me that if I want it back quicker to call their an 800# and they may send me an emergency refund. I asked why was I not told any of this before they took my money that this is how it works. My options were to pay cash or give them a credit card and I paid in cash as down payment.

On my way out of the store a salesman stops me and asks what is the matter, I am fuming at this point and I tell him that I got a call that my application was denied so I came back to get my money and this woman tells me that I have to wait 3 days for them to send me a check for my money.

My question is whay do I have to wait when I gave you cash, open the drawer and give me back that cash I just gave you 2 and a half hours ago.

My next question is, why take my money, give me a contract agreement for payments and terms, and financing; take my money than call me later and tell me I am denied, and then back that up with we will send your refund by check in the mail which can take 3 days?

This is a breach of contract with scam tendancies written all over it.

I have read another person's rebuttal on here from a few years ago about the same thing. And there were a lot of responses to that person that showed that none of you truly had any knowledge of what you were talking about.

So with that said, I read all the little writing on the back of the contract and it says nothing about, we take your money before you are approved and if you are not approved will mail you a check for your refund if you are denied financing. So save the read the small print bull on this one.

Haverty's contract agreements for term payments are just that and once signed and money taken on them, they should be honored, not breached.

As far as I know you sign one contract to open a line of credit and one contract to purchase furniture. You put money down on the purchase, for whatever reason, and it lowers the balance. The balance you hope will be covered by the line of credit.

If you cannot come up with the balance it has nothing to do with the furniture company, it's the finance company who isn't fronting you the money. The finance company doesn't sell furniture and the furniture company isn't going to deliver furniture unpaid. Havertys is over 100 stores if you are on fence with credit for whatever reason and someone needs to physically look at it it's going to take some time. Some systems do spit out pending or conditionally approved as answers to make time for review. They want to make the sale. The salesperson, unless they are a manager, is working on straight commission.

They may and often stretch the truth which may make it hard for some delivery drivers, but that's the price they pay for being able to work. If salepeople don't push it out the door then nothing gets delivered nobody gets paid.

Eight weeks is a normal turn around time for special order furniture. It will always take months to do customer service for any special order issues. It's a price paid for original and personal pieces.

Retailers will often not tell you who manufactures their furniture so they will have the exclusive on it. If Rooms to Go tells you Lazboy makes a sofa for them you may go to Lazboy to find out whatelse is available in that fabric. Rooms doesn't want that to happen.

The key to this complaint is the contract terms and conditions. I'm sure the contract that the complaintant signed included a lot of small print on the back, much like a credit contract for the purchase of a vehicle. The contract most likely included a clause that allowed the seller to terminate the contract within 3 days. If it did not, then it's a legal and binding contract and the seller must deliver the goods per the terms of the contract and the buyer must make payment per the terms of the contract. It's what is in writing that matters if this issue were taken to court. Caveat emptor!

Unfortunately for you and people that have been in your situation this is not fraud. Haverty's and any other company you would buy something from has the right (as you do) to back out of any agreement verbal, contractual or other wise "before the merchandise has been taken delivery of" If they had not delivered it the contractual agreement you made with them had not been (for lack of a better term) consumated.

As a default for backing out of the contract / agreement they do however have to give back your money since you are recieving no goods or services.

In the future never put money down, and if you have to be sure to get the approval in writing from the finance manager. If you want to be a real pest take the furniture(or item) with you then you can force there hand. Hope this clears up some information for you. My personal opinion is that yeah that was a pretty wrotten thing to do, but it was definitely not fraud.

Some people are missing the point regarding the original poster's complaint. They TOOK HIS DOWN PAYMENT, and APPROVED A SIGNED CONTRACT. You may know your credit is poor, but that doesn't mean you can't be granted credit. The fact that they had him sign a contract and accepted his hard earned money seems like a pretty confident sign that his credit was accepted. If there was a problem, they should not have wasted his or their time with contracts and exchange of funds. People all have problems, and credit gets damaged. That doesn't mean that they are worthless. Judge the facts here. They took his money, approved a contract and sent him home with a delivery date for his purchase. The contract should be binding. As for his creditworthiness, he's not asking for anything from ME, so I can't be the JUDGE.

Some people are missing the point regarding the original poster's complaint. They TOOK HIS DOWN PAYMENT, and APPROVED A SIGNED CONTRACT. You may know your credit is poor, but that doesn't mean you can't be granted credit. The fact that they had him sign a contract and accepted his hard earned money seems like a pretty confident sign that his credit was accepted. If there was a problem, they should not have wasted his or their time with contracts and exchange of funds. People all have problems, and credit gets damaged. That doesn't mean that they are worthless. Judge the facts here. They took his money, approved a contract and sent him home with a delivery date for his purchase. The contract should be binding. As for his creditworthiness, he's not asking for anything from ME, so I can't be the JUDGE.

Some people are missing the point regarding the original poster's complaint. They TOOK HIS DOWN PAYMENT, and APPROVED A SIGNED CONTRACT. You may know your credit is poor, but that doesn't mean you can't be granted credit. The fact that they had him sign a contract and accepted his hard earned money seems like a pretty confident sign that his credit was accepted. If there was a problem, they should not have wasted his or their time with contracts and exchange of funds. People all have problems, and credit gets damaged. That doesn't mean that they are worthless. Judge the facts here. They took his money, approved a contract and sent him home with a delivery date for his purchase. The contract should be binding. As for his creditworthiness, he's not asking for anything from ME, so I can't be the JUDGE.

Some people are missing the point regarding the original poster's complaint. They TOOK HIS DOWN PAYMENT, and APPROVED A SIGNED CONTRACT. You may know your credit is poor, but that doesn't mean you can't be granted credit. The fact that they had him sign a contract and accepted his hard earned money seems like a pretty confident sign that his credit was accepted. If there was a problem, they should not have wasted his or their time with contracts and exchange of funds. People all have problems, and credit gets damaged. That doesn't mean that they are worthless. Judge the facts here. They took his money, approved a contract and sent him home with a delivery date for his purchase. The contract should be binding. As for his creditworthiness, he's not asking for anything from ME, so I can't be the JUDGE.

Furniture Financing:

Hi,

My background is in finance, and I also work for a large furniture store.

When applying for financing at furniture stores, they usually want to collect the tax up-front. Of course, in the above person's situation, the salesperson was obviously trying to "secure" their customer and commission, but no money should have been collected until there was a credit approval. Even if the customer qualified for a furniture purchase, they may have not qualified for the full amount they wanted, so the taxes paid would be dependent on the amount of furniture they were actually able to purchase after the "High Credit Limit" was determined.

When purchasing furniture, the purchase of additional warranties may or may not be good, but the amount of the warranty will often take up part of the qualified balance. Sometimes when purchasing an additional warranty, finance companies will "up the balance" so the customer can have it.

Furniture Quality: Regardless of where you shop for furniture these days, there are complaints everywhere. Think about it...In today's world the population is in the Billions. People are also changing furniture out more often. With this the furniture manufacturers are struggling to keep up production levels. They must put furniture out much faster, there happens to be fewer natural resources, and the inability to have time or proper facilities to properly age wood before use, and they want to minimize wage expense, and maximize profits. Materials and manufacturing quality have suffered greatly as a result.

Have you been purchasing shoes or clothes lately ?
Finding size and quality consistency ? No.

Same with furniture. Long gone are the days of the handmade furniture of our grandparents, or even the better furniture our parents had. Should we take less quality ? We can consider starting our own furniture companies, or becoming the controlling force in the manufacturing firms.

Does more money mean better furniture ? Not necessarily. Quality and Price don't always go hand in hand. Make sure you inspect the furniture well before you buy. Don't just buy on "impulse" as customers usually do. "Oh, I like the color", or "I like the style".
Did you inspect the wood, the framing, the sewing, the type of fabric, the type of dyes ? Did you find out the name of the manufacturer and do some research ?

And Please, Please, measure your walls, the distance between windows, doors, and other construction elements, and know your room dimensions before buying. Take a map of the room with the measurements with you and consider how much floor space will be taken up by that sectinoal, that giant ottoman, or coffee table.

Furniture Financing:

Hi,

My background is in finance, and I also work for a large furniture store.

When applying for financing at furniture stores, they usually want to collect the tax up-front. Of course, in the above person's situation, the salesperson was obviously trying to "secure" their customer and commission, but no money should have been collected until there was a credit approval. Even if the customer qualified for a furniture purchase, they may have not qualified for the full amount they wanted, so the taxes paid would be dependent on the amount of furniture they were actually able to purchase after the "High Credit Limit" was determined.

When purchasing furniture, the purchase of additional warranties may or may not be good, but the amount of the warranty will often take up part of the qualified balance. Sometimes when purchasing an additional warranty, finance companies will "up the balance" so the customer can have it.

Furniture Quality: Regardless of where you shop for furniture these days, there are complaints everywhere. Think about it...In today's world the population is in the Billions. People are also changing furniture out more often. With this the furniture manufacturers are struggling to keep up production levels. They must put furniture out much faster, there happens to be fewer natural resources, and the inability to have time or proper facilities to properly age wood before use, and they want to minimize wage expense, and maximize profits. Materials and manufacturing quality have suffered greatly as a result.

Have you been purchasing shoes or clothes lately ?
Finding size and quality consistency ? No.

Same with furniture. Long gone are the days of the handmade furniture of our grandparents, or even the better furniture our parents had. Should we take less quality ? We can consider starting our own furniture companies, or becoming the controlling force in the manufacturing firms.

Does more money mean better furniture ? Not necessarily. Quality and Price don't always go hand in hand. Make sure you inspect the furniture well before you buy. Don't just buy on "impulse" as customers usually do. "Oh, I like the color", or "I like the style".
Did you inspect the wood, the framing, the sewing, the type of fabric, the type of dyes ? Did you find out the name of the manufacturer and do some research ?

And Please, Please, measure your walls, the distance between windows, doors, and other construction elements, and know your room dimensions before buying. Take a map of the room with the measurements with you and consider how much floor space will be taken up by that sectinoal, that giant ottoman, or coffee table.

Furniture Financing:

Hi,

My background is in finance, and I also work for a large furniture store.

When applying for financing at furniture stores, they usually want to collect the tax up-front. Of course, in the above person's situation, the salesperson was obviously trying to "secure" their customer and commission, but no money should have been collected until there was a credit approval. Even if the customer qualified for a furniture purchase, they may have not qualified for the full amount they wanted, so the taxes paid would be dependent on the amount of furniture they were actually able to purchase after the "High Credit Limit" was determined.

When purchasing furniture, the purchase of additional warranties may or may not be good, but the amount of the warranty will often take up part of the qualified balance. Sometimes when purchasing an additional warranty, finance companies will "up the balance" so the customer can have it.

Furniture Quality: Regardless of where you shop for furniture these days, there are complaints everywhere. Think about it...In today's world the population is in the Billions. People are also changing furniture out more often. With this the furniture manufacturers are struggling to keep up production levels. They must put furniture out much faster, there happens to be fewer natural resources, and the inability to have time or proper facilities to properly age wood before use, and they want to minimize wage expense, and maximize profits. Materials and manufacturing quality have suffered greatly as a result.

Have you been purchasing shoes or clothes lately ?
Finding size and quality consistency ? No.

Same with furniture. Long gone are the days of the handmade furniture of our grandparents, or even the better furniture our parents had. Should we take less quality ? We can consider starting our own furniture companies, or becoming the controlling force in the manufacturing firms.

Does more money mean better furniture ? Not necessarily. Quality and Price don't always go hand in hand. Make sure you inspect the furniture well before you buy. Don't just buy on "impulse" as customers usually do. "Oh, I like the color", or "I like the style".
Did you inspect the wood, the framing, the sewing, the type of fabric, the type of dyes ? Did you find out the name of the manufacturer and do some research ?

And Please, Please, measure your walls, the distance between windows, doors, and other construction elements, and know your room dimensions before buying. Take a map of the room with the measurements with you and consider how much floor space will be taken up by that sectinoal, that giant ottoman, or coffee table.

I was employed at Haverty's for about two years in the office. I can tell you from first hand experience this happens every day. It takes so long for some people to get approved the salesperson tells them anything to get them out of the store so that they can go on to other customers. I questioned this procedure of letting the customer out of the store without telling them that their application was still pending. Even office personel are not privy to why the customer was denied. Also, we were the ones to call them and tell them they were denied and try to explain why they had to sign the contract. On several occasions I told the customer they were still pending and they would have to wait untill they were approved before they signed any paperwork. Needless to say I was reprimanded the following day or on the spot for taking up too much of the buyer's time. Let me inform you that this is how Haverty's is. Regardless of the lady's credit, she shouldn't have been led to believe that she was approved. If you are thiking of buying at Haverty's don't let this stop you, just make sure you are approved before you walk out the door. if you are unsure, ask them how much your credit limit is. if they say they don't know, you are not approved yet.

I have been selling furniture for 10 years and am currently working at Dillard's Department Store. I have heard several complaints regarding Haverty's . In one instance a lady had ordered a Bernhardt sofa in a custom fabric. When it was delivered it had several problems including cushions that were so overstuffed the lady's feet wouldn't touch the floor. It took her months to get the problem resolved. Another involved poor service concerning a twin sleeper.

I have never heard of a custamer being told their credit was approved and a deposit being taken and then the store backing out. In this day and age of instant access to a person's credit this treatment should never have happened. Their deposit check certainly should not have been cashed. They need to talk to an attorney.

This weekend my wife and I decided to buy a bedroom set from Haverty's costing $7400. After reading some of the careless responses from Haverty employee's we must withdraw our offer.

If the contracts were sign and a deposit was given, that's that. The person may have credit problems, but you guy's approved him. Not to mention, you took some of his money. If you had no intention of going thru with the contract then why did you process his deposit. An to say you can turn someone down because you have a gut feeling. You should consider yourselfs luck it was not I.

The sales people at Havertys lie to the customers with whatever they want to hear in order to make their commissions. How do I know this? My boyfriend delivers furniture for them and constantly hears customers say they were told some ridiculous lie or another about the piece of overpriced furniture they have ordered.

As a person I understand your feelings and what your expectations where. I read the other comments, it appears they just don't get the point. The point is in the world inwhich we live technolgy is great. When a consumers application is taken, your credit score is given to the STORE i.e Haverty's, it is the credit departments responsiblity 'before' having the customer sign any contracts to ensure his or her credit score is acceptable. Clearly this was not done. I would be fit to be tide, having the knowledge this company has used my money for however many days only to say you were denied. Also it depends on who's working and how they are feeling whether or not they allow your credit scores to go threw. None of the other comments asked about your credit, they all suggested that you have bad credit! I apologise for that and would suggest that you pull your credit reports to find out for yourself what's on them Depending on what state you're in they should be free twice a year. Correct anything that isn't suppose to be there! Good Luck and Oh by the way if you don't get your money back soon. . .May I suggest that you get a lawyer and sue the heck out of them. I bet they'd get it together then. Customer service should always be right the frist time every time. World class service! and yes I work in customer service and have for the past 22 years! Good Luck!

The salesperson from Haverty's would have no way of knowing your credit problems due to the Cramm-Leach-Bliley Act and 16 C.F.R. Part 313, which both protect us and in your case hurt. You know whether you paid you accounts as agreed or not. In the future if you still are not paying on time don't assume an approval if your down payment is accepted. If it was refused based on nothing other than a gut feeling by the salesperson you would raise cain and want to know why. If you have not kept your word on other contracts this company or any other cannot be held liable for assuming you do. Would you rather all companies treated the consumer as a threat rather than an honest individual. Think about your responsibilities before you complain about the actions of another.

I have visited Haverty's a couple of times & have been very politely greeted. I find the Sales help very friendly and helpful.

After reading another bad customer purchase from Savon\Kanes Furniture, I don't think I will be buying my sofa from Savon. I am worried that all the stores are lieing about that new Manmade Micro-Fiber including Haverty's. Can I trust Haverty's that this micro-fiber is best over Rooms To Go and Savon?

For the purpose of the approved application of this lady, I feel Haverty's should of accepted their error. I have taked a friend to Rooms To Go and they were denied within 10-minutes. Why can't Haverty's do the same Honest Credit check. We all can't always afford what we can't really afford but their are times we really manage to pay for things.

My last comment which has nothing to do with the last paragraph is, why is it that Rooms To Go never has the Manufacturer Tag on any of their furniture. Only this weekend did I see a Tag by Richards on one of their Micro-Fiber sofa's. I know for a fact that in Costa Rica Rooms To Go, the furniture has tags that state, Made by Lazy-Boy. It would be nice knowing from Rooms To Go who manufactures their furniture.

Thank you for letting me tell about my feelsing about shopping, I shop a lot, but don't buy much.

We are employee's and also you as a customer must work together as a team. We can not read your mind. Employees's/salepeople are given guidelines that must be adhered to. It is also your responsibility to tell the saleperson if there might be a problem. Do not blame your credit problems on the saleperson.

Also, if there was a possible way of getting you approved, I can guarantee you, "We want your business".

Customer's must understand that we have rules, we must abide by them. If we do not, are you willing to make our mortgage payment, feed our children. I try must hardest to be upfront, and honest. But you should be too.

I read about your experience after shopping on the Haverty's web site. I'm sure you were very embarassed and very disappointed but as I've always said, " Bad credit is EARNED not given to people." Maybe it's a blessing in disguise that they didn't give you the credit to purchase one more item that you probably can't afford. Good Luck in the futur

After reading this complaint I find 2 problems. First the customer needs to go take care of his credit worthyness regardless of how this contract came into existance.

Secondly Haverty's should never have accepted any deposit without first confirming the credit. Now after saying that I think Haverty's should honor the contract as the customer had been told he was approved. I think it's bad business to take somebody's money telling them the've been approved for a purchase only to find out later that the credit should have been denied! I don't see how the contract can be voided because of credit worthyness after Haverty's told the customer he was approved.

I will say this I shop at Rhodes, Ethan Allen and Freedman's and if any of thoughs stores turned me down for credit worthyness after accepting me as worthy would put a very negative taste in my mouth and I would make sure everybody within ear shot heard about it.