Designer Exchange Consignment

Review: The business is holding onto their customer's money. This is unethical and possibly illegal. They are able to gain interest off of money that does not belong to them. Firstly, they restricted the day of the week to Wednesdays only for pay outs. Secondly, I went in on a Wednesday and was told that due to the new year beginning, they could not give me cash, only a store credit. This information was not given to me prior to me placing my items with them for consignment. I believe the people in our community need to be made aware of this unethical practical. Social media is a great way to get this information out to thousands of people in a very short time frame. I have spoke with my attorney who agrees that this is an unethical practice.Desired Settlement: I would like a cash payment owed to me. I would like this business to end their practice of holding onto monies that is not theirs. Customers who sell items on consignment at your store should be able to claim their money on a daily basis. This business should not be allowed to set restrictions on their customers for their own financial gain.

Business

Response:

I am responding to the complaint on Designers Exchange. The consigner filing the complaint signed a contract with Designers Exchange on May 20, 2014. The contract states that items placed in consignment will remain in inventory for 90 days at which time they may be picked up or they will be donated at the end of the season. The contract also states that consigner may collect money once each month on Wednesdays. In addition, the contract states that money must be picked up before start of a new year, it will not carry over. A store credit will be issued if you do not pick up your cash payment. All consigners are made aware of the policies and sign the contract prior to receiving a consigner number.Per the contract, this consigner's remaining items that had not been sold were donated and the consigner was entitled a store credit beginning the new fiscal year 2015. The consigner entered my store in February 2016 and requested a cash payment for items that had been placed in consignment in 2014. I reminded the consigner of the policies per the contract signed and explained any remaining items had been donated and she had a store credit. The consigner insisted she wanted a cash payment. Even though the consigner was not entitled a cash payment, I agreed to research the account to get her a cash/check payment. There has been a check payment in the store waiting for her since February 3, 2016. The consigner never returned to pick up the payment. Upon receiving the complaint, I contacted the consigner on February 17, 2016 and told her there was a check here for her and had been since February 3, 2016. The consigner's mother then got on the phone and refused her daughter to pick up the check and requested the check be mailed to her. I sent the check via certified mail on February 17, 2016. I am attaching a copy of the contract and the certified mail. I have went above and beyond to appease this consigner. I hope this resolves the issue.

Consumer

Response:

The Designer's Exchange Consignment Shop owner called me after she received information from you regarding my complaint. She was very rude making threats to have her lawyer "send me papers". Due to this reaction and response, I did not feel comfortable going back to her store to pick up a check. My main complaint is the business's practice of withholding payouts to customer on a particular day. This is an unethical practice as the business is benefiting by gaining interest on custormer's monies. To date, I have not received payment.

Regards,