You paid a deposit. The deal died. The deposit didn't come back.
A deposit is money paid towards something. When the something never happens — the car is sold to someone else, the room falls through, the seller changes their mind — the deposit is usually repayable. A letter before action asks for it by a date. Written free, today.
Alongside the money itself, courts may award simple interest on money you have been kept out of — commonly 8% a year under the County Courts Act 1984 — and the court fee is typically added to a successful claim. Interest is discretionary. The letter sets this out so the other side can see what ignoring it costs.
How people describe it when they reach us
The sorts of things people tell us. Illustrative, based on patterns in the cases that reach us.
Your legal rights when a private deposit isn't returned
In England and Wales a deposit is money paid under a contract, and what happens to it depends on what was agreed and who failed to go through with the deal. Where the person who took the deposit is the one who pulled out, it is normally repayable; where the payer withdrew, the law still limits what can be kept.
Case lawContract law — breach of contractFailing to do what was paid for may amount to breach of contract.
A job, a purchase or a loan is typically analysed as a contract. If one side does not perform a central promise — work not done, money not repaid, goods not handed over — a court may find a breach and will then consider what loss flowed from it. The measure is normally the money you are out of pocket, proved with evidence.
ActConsumer Rights Act 2015, s.62An unfair term in a consumer contract is generally not binding on the consumer.
Section 62 usually provides that a term is unfair if, contrary to good faith, it causes a significant imbalance in the parties' rights to the consumer's detriment. Non-refundable deposits, cancellation charges and one-sided small print may be examined against this test; courts typically look at how prominent the term was and whether the consumer had a real chance to see it.
Read it on legislation.gov.uk ↗This is general information about the law in England and Wales, not advice about your case. Which provisions apply, and how, depends on the facts.
Four things you'll hear. None of them end it.
Not when they're the one who pulled out. A deposit secures a deal; if the other side cancels or sells to someone else, keeping it is rarely justified. Even where the buyer withdraws, a court can look at whether forfeiting the whole sum is fair.
Then the question is what was agreed, and whether the amount is a fair pre-estimate of their loss. A deposit that far exceeds any loss they suffered may be recoverable in part.
Contract law applies to everyone. A deposit paid under an agreement is governed by that agreement and by the general law on deposits and penalties.
That is not a defence. The letter asks for the sum by a date, or a plan.
Five things worth gathering now
The letter first. Court only if they ignore it.
Your side, your words
What happened, what was agreed, what you are out of pocket. We ask what a court would ask, so the letter says what a court would need to hear.
Written for you, free
A formal letter before action with a 14-day deadline, setting out what is owed and why. You see it at no charge. Posting it by tracked mail and watching the deadline is £15.
Court claim, prepared
If the deadline passes: one tap turns the letter into a small claim, drafted, checked and filed. The £15 comes off our fee. The decision is the court's.
What JustClaim is: we prepare and file the paperwork for your claim, for a fixed price shown before you pay. We're not a law firm, this isn't legal advice, and no outcome is ever guaranteed — what you get is the strongest honest version of your case, properly made.
Questions people in this exact spot ask
Can I get a deposit back if the seller pulled out?
Usually, yes. A deposit secures the deal; if the seller cancels or sells to someone else, keeping your money is rarely justified. The letter asks for it by a date.
I pulled out. Can I still claim any of it?
Sometimes. What was agreed matters, and so does whether the amount kept is a fair pre-estimate of their loss rather than a penalty. A large deposit against a small loss may be partly recoverable.
They said 'non-refundable' in the message.
That wording is a term, and terms can be examined. It carries most weight where you were the one who withdrew; it carries little where they were.
I paid by bank transfer and they've blocked me.
The transfer is your proof of payment and often gives a name. The letter goes to their address; tell us what you have.
How much does it cost if it goes further?
If the letter is ignored, a court claim has a court fee set by the amount: £35 up to £300, £50 up to £500, £70 up to £1,000, £115 up to £3,000. If you win, the fee is normally added to what the other side is ordered to pay. Our fixed price is shown before you pay anything.
Is the letter really free?
Yes. Tell us what happened and the letter before action is written and shown to you at no charge. If you want us to post it by tracked mail and watch the 14-day deadline, that is £15, shown before you pay — and it comes off our fee if it later becomes a court claim.
Deposit gone, deal gone?
Tell us what happened. The letter before action is written free and shown to you today; posting it and watching the deadline is £15.
Write the letter — free →