Legal Question in Consumer Law in California

Does a contract need to specify that a deposit is non-refundable?

I was in process of obtaining a loan for a commercial vehicle and after approval was asked for a deposit equal to two months payment pluse document and inspection fees for a total of $3500. The loan did not fund after additional conditons were required and our plans changed and now the broker is stating the deposit is non-refundable although nothing presented to me stated that at the time I signed. I have asked the broker for a copy of the contract where it specifies and is acknowledged by me that the deposit would not be refunded if the loan did not fund but no requests have been responded to. I would like to know my options at this time and if the contract needs to state non refundable then I would like to proceed with litigaton or official letters being sent to the broker.


Asked on 6/03/06, 11:31 pm

1 Answer from Attorneys
Phillip Cooke Law offices of Phillip A. cooke

Re: Does a contract need to specify that a deposit is non-refundable?

I would be concerned that the company or party you were dealing with may be involved with fraud.

I recommend that you contact your local District Attorney promptly if you do not get cooperation and your money back. (Do not threaten to do that as such a threat is against the law). If your local district attorney is not interested, I would contact the state Attorney General.

You can also bring a claim in small claims court, and if you want your money back, the sooner you process this the better chance you have.

Phillip A. Cooke

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Answered on 6/05/06, 12:37 pm


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