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Emergency

Getting your deposit back when the contract falls through

Deposits are common, for example for furniture, kitchens or tradesperson services. If the contract falls through or is reversed, you are in many cases entitled to the deposit back. It depends on why the contract is not carried out.

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Your chances of getting your money back

If a contract is reversed, for example after withdrawal, the performances received are to be returned; the deposit must be repaid (§ 346 BGB). If no valid contract comes about at all, there is no legal basis and the deposit must be refunded.
If the non-performance lies in your sphere, for example in the case of a groundless withdrawal on your part, the seller may under certain circumstances demand compensation for disadvantages incurred. The exact situation depends on the reason.

What you should do now

  1. 1

    1. Clarify the reason

    Clarify why the contract is not being carried out and who is responsible for it.

  2. 2

    2. Demand repayment

    Demand the deposit back in writing and set a deadline.

  3. 3

    3. Secure evidence

    Secure proof of payment and the correspondence.

  4. 4

    4. Enforce

    If repayment fails to appear, pursue the claim further.

How to spot the scam

  • The deposit is to be withheld as a blanket 'processing fee'.
  • There is no proof of the payment made.
  • The provider cannot be reached or is insolvent.

Frequently asked questions

Do I get my deposit back if the contract falls through?

Often yes. If the contract is reversed or no valid contract comes about, there is no legal basis for the deposit and it must be repaid (§ 346 BGB or the law of unjust enrichment). But it depends on why the contract is not carried out.

May the provider withhold something?

That depends on the reason. If the non-performance lies with the provider, the deposit generally has to be refunded in full. If you withdraw without grounds, the provider may under certain circumstances demand compensation for concrete disadvantages. A blanket retention without a basis is, however, not permitted.

How do I demand the deposit back?

Demand repayment in writing, set a deadline and enclose your proof of payment. If the provider does not respond, you can pursue the claim further, for example through dunning proceedings. In the event of insolvency you have to register the claim with the insolvency administrator.

Take action now

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.