# Refundable Deposits... is there such a thing or a scam?



## creative4art (May 3, 2011)

Its quite annoying when an institution asks for a deposit that is seemingly "refundable" but when the time comes they some how shy away from actually refunding the amount as promised in full, hassle free with no arguments whatsoever cash or check. 
They always have some kind of fine script hidden away in the last few pages of the terms and agreement on how actually the so called refundable amount will be refunded. 

I mostly am referring to private bodies/companies. Dont get me wrong, DEWA does a great job of refunding the deposit as promised. The rest of them, its just a way to get more payment down initially. 

Here are my main issues... 
1. Play school Deposit: taken during the time of registration with a big smile on their face saying it will be returned to you upon cancellation. One named playschool, whose ads appear often in Gulf news, and I fortunately only sent my daughter for barely a month, denies that there is even such a thing as refundable deposit. AED 800... GONE! 

2. Play school num 2: Refundable deposit amount collected AED 1500. This one had more reputable standard than the former and so I did not ask any further questions because they seem to be doing a great job with the kids. Fine print on document handed over in Term 2: Refundable deposit will not be returned as cash or check but can be negated from the fees, provided prior notice of one month is given. Fees are collected termly, and with the one month notice, I should be well aware atleast 4 months that I would be discontinuing their service inorder to get my deposit subtracted from the term fees. Is that the norm around here or even possible? What if I have to take her to a real school and not continue the next term... Then I will not get the deposit back? How lame is that? 

3. AED 5000 Caution deposit collected for a Business Office. AED 4000 paid back on cancellation and 1000 retained for 2 months. Reason: Saying there will be any unpaid phone bills during that period and it will be used to repay that. I have paid 150/m for phone and 150/m for internet already every month. Still they have the need to hold back an amount incase there are unclaimed bills? Du and Etisalat are quite punctual when it comes to sending bills on time, so isn't this too an excuse to slowly dissolve some amount into the abyss? 

Regardless of the amount value, why isn't there anyone decent enough to stand up to what they have promised upon? Are people really that cheap? Apologies if its harsh. Its just frustrating. 

Names of institutions or companies have been omitted, but if necessary I can disclose it so that others will not have the same issues and can shoot it right on their faces.


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## Tropicana (Apr 29, 2010)

creative4art said:


> Its quite annoying when an institution asks for a deposit that is seemingly "refundable" but when the time comes they some how shy away from actually refunding the amount as promised in full, hassle free with no arguments whatsoever cash or check.
> 
> * Are people really that cheap*? Apologies if its harsh. Its just frustrating.
> 
> ...


To answer your question, yes. 

We can use stronger words than "cheap" but no point as they wont change. In almost all cases, getting a refund will involve a number of steps, mostly inconvenient. 

Among some of these cases, a refundable deposit is as good as non refundable. In others you will get you rmoney back but after going through the "steps"

The ironic thing, which makes me want to smack the person implying so, is that some pretend_ you _are the one being cheap when you want a deposit back ; "_its just a small amount, why go through so much hassle for this_?"

Last time i went to get a deposit of 200 dhs back, the person just blankly stared and said it cant be returned because its "so many years back"


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## Gavtek (Aug 23, 2009)

They do it because they get away with it. They know most people will meekly accept it, perhaps complaining about it on the internet.

If you go down there and make them realise that you're not just going to walk away without your money, their attitude usually changes very quickly.

Jebel Ali Free Zone were the worst, they demand deposits from you if you want to get anything done, and when it comes to getting them back you get "it'll take 3 months to process because it's such a large amount." No it won't, you just do a bank transfer.


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## creative4art (May 3, 2011)

You would think they would have some liquid cash lying around even after having several business many people through rent or fees or whatever is the situation... they receive payments with a big smile, but when it comes down to doing their part, its just disappointing. 

I can make my piece if its a few hundred bucks, but once it crosses the 4 digit zone and they act unprofessional, then I always give them a piece of my mind.


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