laws in the states on cash deposits for merchandise

[lightening800]

does anyone know the laws in the us for returning a cash deposit in the us for any reason? our company lawyer said in canada you CANNOT keep a cash deposit for anything if the consumer changes his/her mind for any reason, it must be returned, it there was services rendered then that portion can be kept, i just need the states laws before i can go any further with this. our guys are looking into it also up here. any info would be appreciated. thanks

 

[dan8485]

I think it depends on the state here in the US. I am pretty sure that in Minnesota it must be returned as well....... Don't quote me on this but I am virtually positive that if you put money down at a dealer and then back out they have to refund your money by law. Now of course most people probably don't know this so they assume it is lost and of course the seller is not going to tell them. I would check into the state law your working within and go from there!!!

 

[Little Eddy]

As a consumer you are putting a deposit toward the purchase of an item or service to secure yourself so that the retailer of the item is legally bound to provide the item or service for the agreed price and conditions set out in the agreement at the time. If the consumer can change his mind for any reason and get his money back, why would the retailer ever bother with the hassle of taking a deposit. If the retailer fails to deliver as agreed, then he should be bound by the terms of the agreement as the deposit was to secure both his sale and your purchase and the deposit should be returned .
From what I remember of trying to collect money owed from the USA is that by the time you pay the legal fees to get anything done beyond a letter from a lawyer, it will be cheaper to give up the deposit. Unfortunately some of the more unscrupulous retailers may just count on that to keep the deposit.
Good luck !!

 

[TIM]

it depends on if the items is a stocked item or a special order. Alot of retailers have a restocking fee. Especially on items that are not stocked.

 

[winter brew]

Generally they do not have to refund the deposit....but they can if they choose to.
That is the whole reason for making/accepting a deposit, it shows you are a serious buyer. Also, the seller may have passed up other buyers because he already had a deposit, so that deposit is his compensation for the missed sale. Otherwise, why bother with a deposit?

 

[milehighassassin]

I think in Colorado it is also illegal to keep a "deposit".

 

[tukernater]

Shop local if possible.

 

[lightening800]

as in our company a large dodge dealership it is a fact that by law you may not keep a deposit, it is the risk you take as a salesperson or whatever to hopefully secure the product your selling but if the buyer changes their mind we must return any money kept for the purchase of a product. i have gave many deposits back because of the buyers backing out for some reason or another and i may have possably passed up other sales but whatever at least i didnt p$ss off anyone and life goes on. yes i changed my mind on the product i had a deposit on because i wanted to buy here instead because of the age and prce of the product i was going to buy there wasent worth me not having any warranty and i wanted to keep what i had ordered up here. also it was in the middle of summer wo buys any snow related things in the dead of summer, we all know your going to sell it in the fall anyway so why be a jerk and not return my money, if the times arethat tough there im sorry but dont drag me into it too. i even asked for the supplier to send me something of way lesser value and lets call it even but no way. i really believe in karma so we will se.

 

[FreeAgent]

does anyone know the laws in the us for returning a cash deposit in the us for any reason? our company lawyer said in canada you CANNOT keep a cash deposit for anything if the consumer changes his/her mind for any reason, it must be returned, it there was services rendered then that portion can be kept, i just need the states laws before i can go any further with this. our guys are looking into it also up here. any info would be appreciated. thanks

Ok here's my 2 cents...

Pretty much anyone who has done business with me knows I am about as honest as the day is long so here's how I see it.....

If it is a NEW item that the dealer stocks on a regular basis then yes you would have a good case for getting your deposit back.

If said dealer special ordered the model with your specs then no it would be Non refundable.

Now heres where it gets FUN........

IF it is a PRIVATE party sale and said seller removed it from sale or purchase for any given time and you then purchased another unit from someone else then ABSOLUTEY NOT are you in titled to your deposit back.

Private party sellers who are not operating under a dealer resale lic do not have to follow the same rules that us dealers do.

There has been a few times I have not returned a deposit is few and far between and it has to be pretty dire circumstances before I won't. But honestly what were the reasons and did you BUY something somewhere else?


Shell

 

[Himark]

I went down this road and went head to head with a lawyer years back. He wanted a car and asked me to hold it for 60 days with a 700.00 deposit. He also asked for both front and rear bumpers to be painted. At the end of 60 days he wanted his deposit back and we kept it. ONLY reason was the additional work done. If we had not shot those covers he was entitled to 100% refund. UNLESS a contract is written to the contrary to address the deposit than the language of the contract overides.

 

[NorthMNSledder]

What did the contract that you signed when you gave your deposit say?

If you signed a contract that said "deposits are non-refundable" then you are are of luck.

I have seen contracts worded both ways but a lot of them now say "non-refundable deposit" in them.