Deposit Refund BS
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- ItTango
Client wants refund from over 5 years ago! March, 2004.
They were never able to get their business up and running, but kept assuring me that it would happen. Fail! I created a coming soon page using some Flash animation and they never moved one step beyond that. Never provided any content. Nothing.
A few hours ago I get a call from one of the partners asking for a refund of their deposit... WTF? I didn't even remember her at first.
"We're gonna take you to court" she says. I can't wait.
- iCanHasQBN0
Hahahaha! It's YOUR fault that their business tanked....... 5 years later? What a joke. Imagine if all design business was like that and clients wanted their money back if their product failed. There would be no design business.
- Yes! If only I had written their business plan, loaned them money and never taken a deposit. I'm a real bastard!ItTango
- It was your Flash intro that ruined them! lol..... redonkulous.iCanHasQBN
- You know, now that you mention it... I don't think I cared for it very much. Hmmm.ItTango
- monospaced0
FUCKING LOL.
- iCanHasQBN0
they must be desperately in need of cash for basically threatening to sue you. people like that are pure scum.
- noneck0
Pffft. Suing you over $1800? Never happen unless you live in the US...
Have you considered being a Nice Guy™ and offering to honor the deposit?
BTW, in the future try referring to it as an up-front payment instead of a deposit. Deposit implies that you're just going to hold on to the money, and there's a chance they could get it back.
- harlequino0
They've probably all become junkies and desperately need to score. Going through the Roladex with its opiate-stained contact cards.
- Ha! Crusty lips and gnarly fingers fervently flipping through an ancient relic. Nice visual.ItTango
- sporktine0
I was going to say, isn't the point of a deposit that they DO get it back? Advance payment sounds a lot more like you keep it.
- I actually refer to it as a percentage of the project cost, or a retainer.ItTango
- well which one is it?randommail
- because if you say retainer, that is incorrect as well.randommail
- Then yeah, if the language doesn't say anything about terms of repayment, they are high.sporktine
- Retainer for on going, ever changing gigs. % of cost for jobs with a clear start and finish. Theirs was %.ItTango
- its a deposit if you do no work. did you do work?Iggyboo
- ItTango0
So, it appears that you all (including the hookers outside my building) agree that this refund shit is whack. Thank you, and goodnight!
- wait.. did you do work or not? if you did nothing, and by nothing i mean no concepts, no sketching, no creative rough drafts to show for it... deposit means deposit you should give it back but thats my opinion.Iggyboo
- well than yea you should refund them you should have done it 5 years ago. If you did work at all keep it though.Iggyboo
- mydo0
give them the phone number for a lawyer.
- i_monk0
Counter-sue them for failing to provide you with more work.
- meffid0
There's some literature about this around somewhere, generally it's only valid for a year I would have thought.
Ask to see what paperwork they have/emails.
If I threw a party and put a deposit / up front payment for 10 kegs, they delivered 10 paper cups because I didn't tell them where to deliver it, I would think I was still in credit with their firm and want to shift the credit to something else, I would expect this to be valid for about 5 days because I changed my mind or failed to provide details. 5 years is a fucking joke.
In my contractual terms of service agreement I clearly state the deposit is forfeited if they don't hold up their end; completing content requirements etc, and at any stage if the contract is void by either parties the deposit is mine regardless, and this is for me 40% for clients I've never worked with. It gets signed everytime before I start work.
- lambsy0
why was this payment of $1800 specified as a 'deposit'
did both of you have an understanding that the money would go towards a full website design?
did you charge them for the flash holding page or was that a freebie?
- airey0
fuck 'em. if they honestly think they have a chance in court let them try. it wouldn't go anywhere.
- Josev0
Does your contract state that it is non-refundable? Was it tied to a specific date?
- Josev0
ehh, as airey said, I wouldnt worry about it. It would probably go to small claims court and the worst thing that could happen (I think) is that you'd have to give some of it back if the contract was ruled non-binding. You did do some work and set aside your time. Wait to see what they plan on doing. It's not worth it to invest the time and effort to go to court over $1800. I think their thinking that you'll just turn it over because they asked.
- utopian0
Fight them douche bags if they take you to court, they can not collect on a service rendered 5 years ago, I am surprised they have enough money to send you an email...
- monNom0
You should just give it back to them... minus of course the time spent on the flash page, administering their account over 5 years. etc. Itemize and account for all the unbilled time they've wasted in the past 5 years. Offer to refund them the difference. If that's not good enough, tell them to sue.
Plus, if it does go to that far, your attempt to settle will be looked upon favourably in small claims court.
BTW don't forget to include the taxes you probably paid on that deposit... I'm not sure but 5 years ago seems like you wouldn't be able to revise your past earnings and carry that loss forward. check with an accountant.
- this is a great point. once you itemise the costs, the tax etc, you might just send them $15 and a thank-you.airey
- cuke4260
ha awesome please keep us updated