Non-paying Buyer, DROS is done, what now?

[Colonel Monk]

We have a customer who is an acquaintance and we broke our rules and DROS'd the firearm without full payment.

He wanted some gunsmithing done, so we signed it out to him, then logged it back in to our gunsmith safe for safekeeping while we ordered non-existent parts and awaited payment in full.

He wants us to wait for him to scrape up the rest of the cash but we are 60 days into this deal and with the shortage of guns we are ready to pull the plug and have many other buyers clambering for this firearm.

So, can we cancel the DROS after the fact and send him a refund check?

What claim does he have to the firearm now that the paperwork is done?

Thanks,

CM

[Colonel Monk]

Additional info, he has paid less than half in down payment.

And yeah, we have learned our lesson, seems friends and acquaintances are the most likely to abuse your trust.

CM

[StuckInTheP.R.O.Ca]

I always thought the purchaser had to receive the firearm within 30 days after the 10 day wait or they would have to start the whole process over.

[M1NM]

Mechanics lien for the gunsmith work?

[Colonel Monk]

I always thought the purchaser had to receive the firearm within 30 days after the 10 day wait or they would have to start the whole process over.

Technically, he did "receive" it when he came and signed the paperwork. But as we were doing muzzle brake, trigger, optics, etc, it was logged back in our book anyway. And so it has remained while we wait for the SOB to come up with the money, and for parts to come in.

I suppose there is no limit on how long you have a rifle for gunsmithing. We are busy and it often takes a few months to get it done.

For example, we sent a Colt Revolver back to Colt to have the blueing restored, and they have had it for 8 months. It's logged into and out of our book, and will be once more. No limit on that.

Regardless, this is a lousy situation and it seems there should be a way out of it.

[kemasa]

You can send in a form to cancel a DROS, but I don't think that would be correct in this case since it was delivered. As others have said, you can keep it since you have a lien on the firearm. There could be an issue, such as having to follow the secondhand dealer aspects, FDAS.

[SDGUNS]

I would contact DOJ. If it is past 30 days he must do another dros. The gun should show in his name from the first dros. I would consider the money he paid, his lost. Use the money for storage fees and services rendered. Next time pay in full before anything gets done.

[Colonel Monk]

Yeah, rookie mistake we knew was a bad idea, but it was a friend of my partner.

Easiest thing to do is try again to resolve with customer. See if we can get him to pay, or offer a refund to PPT it to someone else and order him another when he's got the money. If that fails I'll call DOJ and pursue that.

Thanks guys,

CM