Khalid Issam J.
Formal Complaint and Statement of…
Formal Complaint and Statement of Dissatisfaction – Ritchie Bros. Dubai We are extremely dissatisfied with our experience with Ritchie Bros. Dubai regarding the sale of our equipment through your auction process. We decided to sell one of our machines through your auction, and the equipment was successfully sold in the first auction. However, after waiting for approximately three months, we were informed that the buyer who won the auction had failed to complete the purchase. What is particularly disappointing is that the buyer was allowed to participate in the auction after paying the required security deposit, reportedly at a minimum of 20% of the expected purchase value. After the auction was concluded and the equipment was awarded to this buyer, the buyer did not complete the transaction. Despite this, we were informed only after approximately three months of waiting that the sale had not been completed, and that Ritchie Bros. would not compensate us with the 20% security deposit paid by the buyer. We reluctantly agreed, based on our trust in Ritchie Bros., to place the same equipment in the following auction. Unfortunately, the equipment was then sold for a significantly lower price than the price achieved in the first auction. In addition, we were informed that 10% of the final sale amount would be deducted as auction fees. This situation has caused us a significant financial loss and, more importantly, has raised serious concerns regarding the protection of sellers' interests throughout your auction process. To summarize our concerns: The equipment was successfully sold in the first auction. The winning buyer failed to complete the purchase. We were kept waiting for approximately three months before being informed that the transaction had failed. Despite the buyer having paid a substantial security deposit, we were informed that we were not entitled to receive or benefit from that amount. We then agreed to re-enter the equipment in a second auction based on our trust in Ritchie Bros. The equipment was subsequently sold at a significantly lower price. A 10% fee was also deducted from the second sale. To date, we have still not received adequate compensation for the financial loss resulting from the failure of the first transaction. We find this entire process extremely disappointing and unfair from a seller's perspective. When a buyer fails to complete a transaction after winning an auction, the seller should not be left to bear the consequences of the buyer's failure, particularly after waiting for several months. We expected Ritchie Bros. to have a clear mechanism to protect sellers in such circumstances. We therefore request a formal review of this case, including an explanation of how the buyer's security deposit was handled, why we were not compensated following the failed first transaction, and what responsibility Ritchie Bros. accepts for the resulting financial loss. This experience has seriously affected our confidence in using Ritchie Bros. for future equipment sales.