Are deposits refundable by law?
Asked by: Mr. Arely Ullrich DVM | Last update: October 31, 2025Score: 4.5/5 (64 votes)
Yes. For a non-refundable deposit (or a
Can a deposit be refundable?
If you decide to cancel something you paid a deposit for, the seller is usually not required to give your money back. In some cases, the seller might allow cancellations if you change your mind, depending on the terms and conditions (see above).
Can a company not refund a deposit?
With the exception of a few scenarios, such as nonrefundable retainers and real estate security deposits, non-refundable deposits are valid so long as they are explicitly stated within the contract and reasonable under the circumstances that existed at the time the contract was signed.
Can a bank refund a deposit?
A teller is not allowed to 'refund' money YOU deposited into someone else's account. A teller cannot legally give you money out of another person's account. You may go to that person (whose account you deposited money) and ask for the money back.
How do you tell someone their deposit is non-refundable?
Send your contract.
In the meantime, remind them of your agreement. You can say, "Here's what we agreed to. You'll see that the deposit is non-refundable."
Is A Security Deposit Refundable? - CountyOffice.org
Can you fight a non-refundable deposit?
Is it possible to recover non-refundable deposits even if you agreed to pay it in a written contract? Yes. For a non-refundable deposit (or a liquidated damages clause) to be valid, it needs to be reasonable and proportional to the damage suffered by the party at the time of the contract.
How to ask for a refund of a deposit?
You'll need to contact your landlord at the end of your tenancy and ask them for your deposit. If your home is managed by a letting agency, you'll need to contact them instead. It's best to write or email when you ask for your deposit back - if you do, you'll have a record of when you asked for it.
Can a bank refuse to refund money?
While banks are generally obligated to refund money lost to fraud, they may deny the refund if you were negligent or involved in the scam.
Is a deposit a legally binding contract?
A more thorough explanation:
A deposit contract is a type of contract that creates obligations between two or more parties. These obligations are legally enforceable.
Can deposited money be taken back?
Yes. The bank or credit union can take the money back if the check you deposited was fraudulent, even if it made the money available to you and you withdrew the funds. If taking the money back makes your account overdrawn, you should contact your bank or credit union to learn about how to fix the situation.
What to do if a company won't refund your deposit?
You can notify the consumer protection division of your local district attorney's office of any violations, or file a complaint with our office using our online complaint form.
What happens if a company refuses a refund?
Contact your state attorney general or state consumer protection office. These government agencies might mediate complaints, conduct investigations, and take other action against those who break consumer protection laws.
Can you sue a company for not refunding your money?
In conclusion, it is possible to sue a company for not refunding your money if they have breached their contract or violated consumer protection laws. Seeking legal advice and understanding your rights as a consumer is crucial in determining the best course of action in such situations.
What makes a deposit non-refundable?
While a deposit is, by definition, is refundable, the term non-refundable deposit is typically referring to a surcharge or fee on top of the initial security deposit. In some cases, this can include a portion of the security deposit or all of it.
Can deposits be reversed?
A reversal request may be made by the paying agency for an erroneous direct deposit payment that has been transmitted to the automated clearing house (ACH) network. A reversal is an attempt to retrieve the funds; it is not a guarantee the funds will be recovered.
Do all deposits have to be protected?
Your deposit has to be protected even if someone else paid it for you, for example your parents or a friend. Your deposit doesn't have to be protected if you're a lodger or a student in halls. It also doesn't have to be protected if you rent privately and have an assured or protected tenancy.
Can I get my deposit back if I change my mind?
If you haven't formed a contract with the business for the services you won't have to pay anything. If you've paid up front for the service or made a deposit you're entitled to get all of it back.
Is the deposit refundable?
In summary, a deposit is security for the buyer's performance of the contract. It is generally not refundable unless the contract expressly states otherwise. In contrast, a part-payment is refundable, subject to any losses that the innocent party may have as a result of the breach.
Can I cancel a contract after paying a deposit?
Don't just accept the business can keep your deposit and advance payments or ask you to pay a cancellation charge if you cancel the contract. The business can only do this if the contract term is fair. A cancellation charge is not fair just because it's in the contract you signed – it needs to be reasonable.
Is it legal to decline a refund?
Under U.S. federal law, businesses can refuse a refund request unless: Different state laws apply which enable customers to seek a refund. A cooling off period applies. The product is defective, broken, or damaged, or.
Can I sue if my bank won't release my money?
Failure to Release Funds
If the bank will not release funds that are legally yours, you might have a valid legal claim.
Can you ask bank to refund money?
Contact your bank or payment provider straight away. Let them know what happened and ask if you can get a refund. It's important to help them while they look at your claim - make sure you give them any information they ask for.
Can I get back a non-refundable deposit?
A deposit, in a similar way to a part payment, makes up part of the whole purchase price and is not a guarantee of the seller's fulfilment of the contract. This suggests that if the payment is made as a deposit (in this situation), the money will not be recoverable if the contract is not fulfilled by either party.
How to kindly ask for a deposit back?
Sample Letter Demanding Security Deposit
When I moved out, after giving you 30 days' written notice, I left the apartment cleaner than it was when I moved in. I was also paid up in my rent and I gave you my new address. Under California law, you had 21 days after I vacated the apartment to return my security deposit.
How do you politely decline a refund?
Be firm and courteous
Start by acknowledging the refund request and your steps in determining if it was valid. Then explain your decision to deny the refund. Use active language like, "I looked into your situation and our refund policy does not allow one in this case."