Daddy's Junky Music Layaway Refunds

From the GE Capital Website:

Starting immediately, GE Capital's Commercial Distribution Finance business (known as CDF) will, of its own accord, begin refunding monies that customers paid to place instruments on layaway at stores operated by Daddy's Junky Music, Inc. (known as Daddy's), based in Manchester, N.H.

CLICK HERE FOR LINK TO REFUND FORM

Since this unfortunate situation began to unfold, CDF has committed to developing a feasible resolution for Daddy's customers who had placed items on layaway. CDF has decided to offer cash refunds to Daddy's layaway customers as a goodwill gesture. This gesture is specific to the situation with Daddy's. It is a one-time-only solution, and will not be part of CDF's standard business practices in the future.    

Instructions for completing the layaway refund application are below. Please note: Applications must be submitted to CDF by June 1, 2012.

The layaway instruments comprise part of CDF's collateral for loans made to Daddy's. This collateral was repossessed from Daddy's due to nonpayment of those loans. Under U.S. law and Daddy's contractual obligations, CDF was entitled to sell the collateral to recover the amount of monies we were owed by Daddy's on the outstanding obligations.

For answers to specific questions, please see below.

1. What was CDF's relationship with Daddy's Junky Music?
CDF provided inventory financing that allowed Daddy's to stock merchandise in its stores from a wide variety of manufacturers. After months of negotiations regarding Daddy's failure to pay us according to our renegotiated financing agreement, we repossessed more than 40,000 pieces of merchandise that had been pledged by Daddy's as collateral to secure the loans.

We do not control Daddy's bank accounts, nor do we have access to them.

CDF did not provide financing to Daddy's customers.

2. Who is eligible for a cash refund on layaway payments made to Daddy's?
Any Daddy's layaway customer who has a record from Daddy's of an item or items placed on layaway at Daddy's in 2011 is eligible for a cash refund, assuming that customer's information is included in the records that Daddy's provided to CDF. In the case of a discrepancy, the lesser amount will be refunded. All layaway refund applications are due by June 1, 2012.

3. How can I apply for a refund on the layaway payments I made to Daddy's?
Daddy's layaway customers should complete the information request form in full, and return it with a scanned copy of their identification as well as scanned copies of payment records. The form can be downloaded here. Additional instructions are contained within the form.

Only complete applications will be processed.

4. How will CDF protect my personal information?
We are collecting the information requested by the layaway refund application form in an attempt to confirm, using Daddy's records, that you have participated in the Daddy's layaway program. We will also use this information to communicate with you and for other reasons related to your refund request. We may share this information with our affiliates and suppliers, but only to assist us in support of or related to your request and we will not use, or share this information to be used, for other purposes. While no set of safeguards is perfect, we have in place administrative, physical and technical safeguards designed to maintain the confidentiality of the information you provide us and we will retain the information only for as long as we have a reasonable business need to do so, consistent with our records retention program.

5. When will I obtain my layaway refund?
Individual refunds will be mailed via the U.S. Postal Service within 8-12 weeks after a complete application has been received.

6. Can I opt to pay the balance and claim the layaway instrument instead of receiving cash?
No. CDF has sold the inventory to a third party in order to apply the proceeds toward Daddy's outstanding balance.

7. How can I retrieve an instrument that was left with Daddy's for repairs?
CDF has returned to Daddy's the remaining instruments that were identified as customer repairs. Those customers were then contacted by Daddy's to arrange for the pick-up of their instruments. To our knowledge, there are no instrument repairs left in our possession.

8. How will Daddy's customers be compensated if they paid money toward purchases shipped between Daddy's stores as well as eBay purchases and special orders from manufacturers that were shipped to Daddy's stores?
All prior financing arrangements that customers made with Daddy's are Daddy's sole responsibility. Like CDF, these customers are creditors of Daddy's and may choose to legally pursue those claims against Daddy's.

9. I sold my used instrument to Daddy's, and received a store credit in return. Can I obtain that instrument?
No. All prior financing arrangements that customers made with Daddy's are Daddy's sole responsibility. Items that were in Daddy's inventory, including used instruments purchased from customers, were repossessed due to Daddy's failure to pay CDF according to the agreed terms. Like CDF, these customers are also creditors of Daddy's and may choose to legally pursue those claims against Daddy's.

10. Can I obtain a cash refund for unused Daddy's store credits, gift cards, gift certificates or repair deposits?
No. CDF will only provide cash refunds for layaway items. All prior financing arrangements that customers made with Daddy's are Daddy's sole responsibility. Customers should contact Daddy's directly regarding store credits, gift card redemptions, repair deposits or any other cash refunds.

11. How can I contact Daddy's?
Daddy's can be contacted through its Facebook page.

12. How can I get more information?
If you still have questions related to layaway claims, please email us at gecacontactus@ge.com. For questions relating to any other matters, please contact Daddy's directly.