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JolliBee

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Hi Y'all,

I just needed to vent. I sent in an acceptance fee to the school of my choice thinking "This is where I want to go!" but then had buyer's remorse when I started thinking about the $200K debt upon graduation. So I decided to go to a school with cheaper tuition. I stopped payment on the check and sent the school a check to cover any penalty fees incurred.

Now I've received several nasty, threatening letters stating that I still owe them $1000 because the fee is NONREFUNDABLE and furthermore, they've withdrawn my seat even if I send them $1000. If the fee was more reasonable, I'd just suck it up but $1000 is too much for my student budget.

Should I just let them send me to a collections agency? What other legal actions can they take against me? Will that ruin my credit rating? It's just so frustrating.

J.
 
I think a letter of appology is in order. The school is probably angry at the way you dealt with stopping your payment. Perhaps if you gave them a call ahead of time, they would have been more cooperative.
You should call them and explain your intentions, and at the very least, admit that you were at fault. I don't think it is their intention to screw you financially, they will eventually get that same $1000 from the person who fills your spot. Plus, it costs them more money, work, and bad publicity to send you to collections.
 
Originally posted by JolliBee
Should I just let them send me to a collections agency? What other legal actions can they take against me? Will that ruin my credit rating? It's just so frustrating.

J.
Click to expand...

Indeed I agree with you that the deposit fees at some schools are unacceptable. However, you decided to send that check in (and later on decided to stop payment on that check). So the question is, what can they do?

well ... collection agency is one option for them. It might also be reflected in your credit history ... which means taking out extra loans might be harder or you might end up w/ higher interest rates. Depending on your bank, your credit card interest rates might go up if you receive a negative statement on your credit history. Also remember, you will be borrowing money for school and might have to resort to private sources in addition to Stafford loans, and also think about residency/fellowship if you ever want to buy a house

They can also take you to civil court for breach of contract. Depending on the laws of the state, if they win, you might have pay the $1000 along with court cost AND attorney fees (theirs and yours)

In some state (and depending on the local district attorney), this might be interpreted as fraud and if the local DA decides to press charges, might result in fine and jail time (and the school still has legal venue in civil court)


All these possibilities are the extreme. But you asked what other legal actions they can take against you. Will this happen? Probably not. But if the school decide to make an example of you (to prevent others from doing the same thing) - watch out!!!

Disclaimer:
Of course, I AM NOT AN ATTORNEY nor do I work in the legal field. For proper legal advice, please consult an attorney.
 
I did send them a letter of apology with a fee to cover any penalties and they in turn responded with a copy out of their handbook explaining that the fee was nonrefundable and that I still owe them $1000. Then they sent me another letter withdrawing my seat. I'll try calling to soothe things over but from what other people have posted, they are pretty strict about the nonrefundable part.
 
Send them the $1000.

You had a binding contract when you issued the $1000 check in the first place. The fee is non-refundable and you were aware of this fact prior to writing the check, correct?

$1000 now is a lot of money. But it will be a whole lot more next year when you apply for private loans to cover living expenses and can't seem to find a lender.

Unfortunately you decided too late. You need to bite the bullet on this one and cough up the $1000.
 
Jollibee:

Don't send in the $1000. It is easy for others to comment on what is a lot of money. The school is suffering no damages b/c of your check. Of course, they are filling the MSI spot w/ another applicant. All they are looking for is an extra $1000 to help their bottom line.

These $1000 first deposits are too much. I understand the problems DO schools have as some students use them as backups to MD schools, but wouldn't a $500 deposit like DMU and WVSOM (in-state) be more reasonable?

With the adding of new DO schools in FL and NV, plus these outrageous deposits, I often wonder about the AOA and DO schools true intentions.
 
Yikes, this is a bind. But I have to agree with JPHazelton, you sent in a binding non-refundable deposit and under any law you are obligated to follow through. In a court of law you would lose.

It is rough and a whole lot of money, but this may come back to haunt you. What if they put a lien on something you own, or even worse.... what if they contact the school you are going to go to. It isn't worth $1000 to have this hanging over your head. Sorry
 
I haven't gone through the process yet, but when you first notified the school that you would be attending, did you have to sign a form in agreeance with all rules and regulations? Or do you just call and confirm that you will be attending? Your signature makes all the difference.
 
The school will incur no damages b/c they are going to fill your spot w/ someone else and his or her tuition. I do not feel you are liable for the fee. Spend your hard earned dollars elsewhere.
 
No, I didn't sign any contract with rules and regulations.

Hey, I feel truly bad about this. I really did not mean to cause any inconvenience to the school and sent in whatever fees that were incurred because of my bad decision. More importantly, I'm sure that the seat will not go unfilled and another person will have the opportunity to be a physician and the school will get their tuition.

I had good intentions from the start and I love the osteopathic philosophy. I'm still set on osteopathic medical school and I hope that the above bad scenarios don't take place, i.e. forcing another DO school to expel me, etc.

I will just keep my fingers crossed and hope that this can be worked out in a way that makes everyone satisfied.
 
You signed the contract and put it in the mail....you cannot reneg on the contract. It doesn't matter if you think it is fair or not, you SIGNED it at your own free will.

I agree that 1K is a lot of money, but who are you to decide that because the school charges so much of a non-refundable deposit that you shouldn't be liable? You are liable, you are ethically and legally obligated to pay it. I no attorney but everything group_theory wrote is correct - I've studied some contract law and you have a contractual obligation to pay it.

It is possible they could let the AOA know and all of the schools know what you have done, this could look poorly on you and perhaps grounds for withdrawal of your seat at other schools. Is that likely - I have no idea.
 
You didn't sign anything? You just sent in your check by itself with no form?

In any event I would call them and see if you can work something out............perhaps pay a percentage.

Good luck with whatever happens.
 
To all of you complaining about the high deposit amounts:

Many of the osteopathic schools have high deposits just for this very reason (what the OP did in pulling out). They want those that agree to go there to be serious about it. They know that lots of applicants use DO as a backup & they don't want you holding a spot that couldv'e gone to someone who really wanted to be there. They want you to really think before you send in the deposit.



If you sent in the deposit, that is your agreement to attend. You really should chock it all up to experience and pay it. As many others have pointed out, fighting this isn't worth the possible consequences.
 
It does not matter whether or not the school incurs any damages or not. When you sign that check and put it in the mail, you basically signed a binding contract agreeing to the rules and procedures outlined in their handbook. You were well aware of the non-refundable issue when you wrote (and signed) the check.

By canceling the check, you are in breach of that contract. The school can go to court and get a court order ordering you to fullfil your term of the contract (basically make you pay up $1000), and depending on the laws of the state, court cost and attorney fees.

A contract is void or unenforceable if 1. results from misrepresentation 2. fraud 3. undo influence or duress .

It doesn't matter if Demosthenes_7 or other SDNers think you are not liable, under most states's Statutes of Frauds, it is a valid contract and by unilaterally cancelling the check, you are in breach of said contract. But again, for proper legal advice , consult an attorney (preferably one who is an expert in contract law) about legal recourses and repercusion.

To TexPre-Med - even if the OP called and informed them that he/she is accepting the offer, that is still a valid contract. Contrary to what most people believe, a valid enforceable contract can be made verbally unless it falls under the UCC writing requirements.
 
Demosthenes_7 is right don't pay the money. In most cases in tort law, they must show damages sustained. They haven't incurred any damages so they have no legal recourse. Furthermore, if they press the issue have a lawyer contact them with a legal suit against them. They will not want to fight over $1000 dollars and drop the issue. This type of stuff works all the time. It is cheaper and less time consuming to fight over this stupid $1000 so drop it. This is how malpractice "settling oput of court works." SCREW THEM!
BTW if you are in AZ PM me. I know who can help you end this real quick.
 
Originally posted by Bull's eye
Demosthenes_7 is right don't pay the money. In most cases in tort law, they must show damages sustained. They haven't incurred any damages so they have no legal recourse. Furthermore, if they press the issue have a lawyer contact them with a legal suit against them. They will not want to fight over $1000 dollars and drop the issue. This type of stuff works all the time. It is cheaper and less time consuming to fight over this stupid $1000 so drop it. This is how malpractice "settling oput of court works." SCREW THEM!
Click to expand...

In the eyes of the court, damage in this case from breach of contract is a loss of $1000 for the school. This would be compensatory damages.

There are four broad categories of damages
1. Compensatory (to cover direct losses and costs).
2. Consequential (to cover indirect and foreseeable losses).
3. Punitive (to punish and deter wrongdoing).
4.Nominal (to recognize wrongdoing when no monetary loss is shown).

This is basic contract law here. Valid contract (offer, acceptance, consideration, in writing) and OP's breach of contract by not fulling terms of his contract ($1000).

Now for the OP to bring suit - on what grounds? The school can bring a simple motion to dismiss with extreme prejudice, making you liable for court cost and attorney fees for bringing the suit.


EDIT: Here is a site run by Findlaw (and copyrighted by the American Bar Association) relevant to the question of stop payments on checks
http://cobrands.public.findlaw.com/newcontent/flg/ch9/st5/st53/qa1.html

Q: What if I want to cancel a contract or void a purchase that I made, but I already paid with a check?

A : First, you should call the seller and ask for a cancellation of your contract and the return of your check. If the seller won't do this, you may call your bank and "stop payment" on that check. Remember, you're still liable for the purchase price, and you may be sued by the seller for its amount, unless you have a legal excuse not to pay. Also be aware that when you stop payment, you raise the stakes and diminish the chance of a settlement. Merchants don't take kindly to this technique.
 
group_theory, I totally understan what you are saying. However, sometimes its just easier for the school to not press the issue. A good attorney can do a lot of things, and there is no such thing as "basic" anything in law. If you make a big stink they will drop it. I've done it myself.
 
Originally posted by Bull's eye
If you make a big stink they will drop it.
Click to expand...

But why risk it?

$1000 is a lot of money to anyone, particularly a medical student (trust me, I know).

I would not risk this.
 
Everything group_theory sounds right, and the part about the mail is completely correct. As soon as you put it in the mail you can consider it in the hands of the other party - this is why a lot of stuff say to have a postmark date instead of a date in which you must have it in their office.

A verbal agreement....well if one was made it would be obvious because the OP sent in a check, but I wonder what school has you send in a check with no other information or paperwork to sign because that sounds awful weird as well as a school that would want you to verbally commit (without giving you a few weeks to get back to them) at THAT moment.

If someone brings a big stink then a lot of things can be worked but there is a lot of risk and you have to decide how much you want to risk.
 
I still don't see what the big stink is? The damages that the school incurred has been rectified when you sent the check to cover the stop-payment fees. The only way I can see you liable is if the seat is never filled. The product, your seat, has been taken by another applicant. The school has the $1000...

Since you have lost any seat at that school, what do you gain by sending in the $1000? You are officially out. I cannot understand why you are not getting more support from your fellow applicants about this? Are osteopathic students happy about the outrageous deposit fees?

Let's work to make the 20 schools we have stronger, so we do not have students forking over huge deposits to prevent them from opting for MD in the end. The AOA needs to address this issues and others to strengthen the osteopathic profession.
 
1) So the contract is signed by the applicant on his/her check! In such case, I wonder if the reversible nature of personal check would be propagated to the contract temporarily until or permanently even after the check is cashed?

2) What if the applicant mails the check in with an instruction that the check can only be cashed on the deadline? Can the school give his/her spot away before then?

Whatever the answer/outcome would be, I predict that cashier's check or money order would most likely be the only way to go in the future.
 
At the risk of being literal, wouldn't a clause stating that the deposit was non-refundable only apply if the school had the money to refund in the first place?

A check isn't a contract, or even a promise to pay. It's a voucher redeemable for money from the person's account. Stopping checks is obviously perfectly legal, and it is because a check is not some sort of legally binding document.

So it sounds to me as if the school is just trying to bully you, and you've done more than your obligation in giving them money to cover the loss. The fact that the school's withdrawn your seat and STILL wants the money just reinforces all the negative stereotypes about the mercenary nature of osteopathic schools.

If they don't back down, I'd talk to them, agree as nicely as possible that you understand that the deposit is nonrefundable and that you think that's totally fair. That's why, you can inform them, you stopped the check--you knew that if it were cashed, they wouldn't refund it.

I'd love to know what school this is. We all know about LECOM'S marble statues, Midwestern's half-million-dollar-a-year CEO, $35,000-a-year satellite campuses from what seems like most every school springing up like dandelions, but this sort of intimidation and bullying is the profit motive on an entirely different level of reprehensibility.
 
I still have 2 more cents left:

I believe that the applicants interviewed/accepted/matriculated stats between OD and MD schools are not that much different. No way near $2000/$100 ratio of deposit requirements. And every MD school including Harvard is more or less a back up school too.

Is OSUCOM the only school that doesn't require deposit? May be it is because it is almost impossible for out of state applicants to get in. PCOM requires only $250 deposit. I can't think of any other schools besides these two.

Is OU-COM a state school? Looks like it is worth applying to. If out of state MD students can appy for instate residency in their second year, OD students should be able to do it too.
 
It seems as if the original poster already has made his/her decision. Either way, all this law stuff seems king of moot to me simply because of what LukeAlfred has pointed out. Of course this is based on my common sense and not some profound knowledge of law. But I have never heard of a check being a 'contract'. Further, if they never had the actual money in their possession, I don't see how the deposit being non-refundable is binding. This happens alot of places. For example, my fiancee and I signed up for a cruise and we had to put our deposit in for our spot....it was of course non-refundable. We sent in the check, but about a day or two later, we decided it didn't fit our schedule. I hurried to the computer to see if the check had been cashed. Had it been cashed (ie the money in the company's possession), I would have been assed out. But it was not, I promptly stopped the check. I never received any word from the company stating I was obligated to pay any fees OR the non-refundable deposit. I didn't expect that I would since it never got to the point where they had the money to begin with. So, I am wondering why this would be any different. In this case, I admit I probably would think twice about not paying it..since it could affect my career in some twisted way. But, I am in agreement with those that don't think you should HAVE to pay the money.
 
here i go on my soapbox:
(some opinions may seem harsh... if you didn't want brutal, you probably shouldn't have asked what to do...)

everyone knows when they apply how much acceptance deposits are. if $1000 is too much for you, don't apply. that information is available on the AACOM website for each school. the fact that the deposits are high is just something that we deal with... it's a pain when you're applying but when you matriculate, that money comes directly out of your first term loan money so you get it all back. (for the school you go to, not the others though).

the schools have every right to charge whatever they feel is fair price and they charge more for DO students than the MD schools charge because the reality is that not everyone applies to DO schools as top choices. they have to try to minimize the impact of getting to august without a full class.

pay the money. seriously, i understand that it's a lot of money. there are many MANY people who have done this before (myself included) and paying the money is just part of the thing. from my perspective, it doesn't strike me as a terribly mature thing when you stop payment on a check from "buyer's remorse." take responsibility for your actions. that's pretty harsh, but it's true. you entered into an agreement on paper, both by filling out the check and by sending it in (and i have a hard time believing that there was no piece of paper to be sent in with it) and you also entered into an agreement with them in your own mind, obviously sending in the money with the intent of going to that school (it was your top choice). only when faced with the financial aspects of the commitment did you decide your previous actions might have been wrong. hindsight is 20/20.

i think that you have a legal obligation to pay the money to the school. the fact that you sent them the check in the first place shows intent and, as far as i understand law, the moment you write a check you are entering into an agreement that the piece of paper equals the amount written on it. that's why so many people end up in jail for repeatedly writing bad checks. the ability to stop payment on checks is not available because you regret a purchase. it is available for stolen checks, checks written for services and goods not rendered or rendered unacceptably, etc. NOT for panicking about the amount of debt you're going to accrue during med school. imagine what wal-mart would do to you if you stopped payment on a $1000 check for groceries you had purchased.

it's probably not a good idea to go toe to toe with the school either. if you're skittish about paying $1000 to them for a deposit, i'll bet they'll have a pretty easy time of burying you in legal troubles if you don't pay them. a defense attorney isn't going to work for free.

my honest belief is that you'll end up paying this money one way or the other... either by resigning yourself to its inevitability, by a collections agency or by a judge telling you that you do in fact have to pay.

it's really not worth the headache. you should relax and try to have a good time before school, not worry about how your day in court is going to go or whether they're going to garnish your wages.

also, never underestimate the influence that one school can have over the whole of the professional community. this school, in one way or another, is tied to all of the others and that includes clinical rotation sites and residencies. the blacklist is a powerful thing...

good luck...
john
 
People end up in jail for writing bad checks because they receive something of value in return for the check that they don't return. This hasn't happened here, not even if you consider the slot in the class something of value. That was given before the check was sent; it wasn't a matter of the school's saying, "We'll accept you, but pay us $1000 right now for your acceptance letter."

Now that the offer's been withdrawn, the school has even less of a leg to stand on. It would be like buying a TV, stopping payment on the check before it's delivered, and then having Best Buy say, "We're keeping the TV, but we want the money anyway."

Legitimate businesses don't get away with it, and businesses in saviors-of-humanity sheep's clothing shouldn't either.
 
regardless of what has happened now, when he WROTE the check it was written as part of a contract giving him a seat in the class. the revoking of the offer is a response to the actions of the OP; the school didn't simply revoke it because they felt like it.

the OP wrote the check and the thing of value given was a spot in the class.

earnest money when buying a house is the same thing. it's a deposit that, if the buyer decides not to buy, is nonrefundable. giving someone money and being held accountable for paying that amount you promised does not necessitate goods and/or services being exchanged. it necessitates a contract and there was a contract in this case.
 
Jollibee do not pay. I cannot understand why some of these respondents advocate for a school that has revoked your acceptance but still demands money that it never received. Again I reiterate, there was no contract, no damages, and you are under no liability to the school.

You can stop payment on goods b/c you regret the purchase as long as the product has not been damaged. You purchased a spot in the school, decided, as many buyers do, that the school was not for you, and chose to negate your purchase. Of course, if this school wants to end the ability of buyers regretting their decisions they should demand cashiers checks or money orders.

You have every right to cancel your decision. Deciding to fork over $1000 for nothing in return will only benefit the money-hungry school and lighten your wallet significantly. Why can PCOM and a few other DO schools get by with such low deposits? Maybe DO schools should start a process where students who only apply DO should get the kind of deal that allopathic schools offer, with refundable, low deposits and final decisions made in middle May. (Of course these students would have to sign a binding contract!)

Until osteopathic schools address their problems they will remain the ugly step-child of MD schools and forever in their shadow. I believe strongly in the osteopathic philosophy, but your situation, new schools haphazardly sprouting up, and all the other selfish activities that the AOA does only perpetuates a discipline in need of leadership. The unique DO degree and profession should be something special and not a cash cow for the few at the top.
 
Every time some big company such as utility service co. or gasoline supplier....etc raises the price, people complain of price gouging.. It would be a great service for everybody to find out if a type of professional school is entitled to do it. Are there any other schools mandate such a thing? Where does the $ go to anyway? Probably right to the bottom line.

Is there any other way besides $? At least, make it just one time deposit for all acceptances by DO schools. The way it goes, it doesn't even benefit any single legit COM applicant at all.
 
Originally posted by docslytherin

the OP wrote the check and the thing of value given was a spot in the class.
Click to expand...

But doc, again, the spot in class was given before any sort of check was written. The school reserves the right to take it away if they don't get the money, and that's exactly what they did. Did your admissions letter say, "Congratulations! We've decided to sell you a seat in our class of 2007!" That would be unseemly, and it didn't happen in this situation. The money's required to hold a spot. If the money's not paid, the spot's not held, and everyone moves on except for overzealous administrators who can't stand to see a thousand dollars get away.

Earnest money is a poorly-fitting analogy. In this situation, the equivalent would be someone writing an earnest-money check for the house, regretting it, and putting a stop on the check. In this situation, the seller would simply not hold the house for them. The seller might have a claim to damages for the time the house was held before cashing the check, but the court would almost certainly agree that the check should have been cashed in a prompt enough fashion that the length of time was insignificant anyhow.

In this case, there's no way the school is going to suffer any analagous damage. The seat WILL be filled; there's no shortage of students. Someone will pay the full deposit for that seat. The only thing the school loses is someone conscientious enough to pay the school for any possible fees and smart enough to stop the check before the school can rightfully invoke the "non-refundable" clause.

There's really no other way to cut it--the school's going after money it's not entitled to. The admissions office may be right to feel disappointment or irritation that it went down like it did and that their time was wasted, but it's got no right at all to the thousand dollars.

Everyone's heard the stories of schools that accepted the secondary fee and rejected the applicant immediately, or sat on the completed secondary with nary a word until a late April rejection. Schools do quite well for themselves during the admissions season, and it's unsurprising that they're conditioned to go after students that they won't have to work with like someone out of a bad 80s lawyer show, there's no reason to encourage the behavior, particularly when the encouragement costs $1000.

Stand strong, OP!
 
The issue has nothing to do with the amount of the money. If we were talking about $1 or $1000, the situation would be the same because we are dealing with a contract.

Let me ask a few general questions. Let's say I am accepted into a medical school and I in order to accept their offer I only need to send them a check. So there is this idea that until they have processed the check then there is no contract. What happens if I mail them the check...someone made a copy of it for their records...but then they don't cash it because they lost it or for whatever reason. Do I own a seat in the class? By the reason of some people I do not own a seat....nor could I sue because since a contract was never completed I cannot sue for anything.

Or....if I buy something from the store (with a non-refundable policy on sale items)and pay with a check. I then have to legal right to return anything I want until they process my check?

Contracts are entered every day, you enter a contract when you go buy groceries...when you go buy gas...when you buy anything or even pay for just about anything - and legally a contract is not consummated when a check is processed, but rather when you sign on the dotted line and delivered it.

When you put something in the mail, it is legally considered delivered. This is also why you cannot get your mail back once it has come in the hands of the post office.

I'm still unclear...was the check the only thing sent? Was there nothing like a contract?

The point about the school not losing anything because someone else will take that seat and get that money....that's not going to win in the legal or ethical sense because it is regardless of the situation.

Do I think it's fair? No, but my opinion is not what's important...it's the legal obligation I would be concerned about. Do I wish it were different? Yes...but at the same time I understand the contract I willingly signed and the responsibilities of my decision. What's really wrong is the 2k that TUCOM wants within 2 weeks...now that's really wrong!

If the only thing that was required was a check, then I would be unclear about the check being a signing of a contract but I think it would be. For example...let's say all I have to send is a check...but would the school have the ability to take back my offer of acceptance until they processed the check (however many weeks later)? No, as soon as I mail it to them...they have to take me in. Why? Because the mailing the check finalized the contract...not the cashing of it.

The cashing of the check could take weeks or days...but the time it takes is regardless as well. Let's say I wrote a check to AZCOM & COMP...and two weeks later I decided on one school. I notice that my check hasn't been cashed from the school I decided not to go to - do I have every right to cancel the check? No. So time of days or weeks have nothing to do with it.

Now let's say a different scenario - let's say I do send in a check and it's cashed. Four months later I decide I don't want the seat anymore...can I get my non-refundable deposit back? Well I'm not taking the seat anymore...and someone else will pay for the seat. No, I don't. So any argument for the OP that says that because the school will fill the seat anyways would also have to support that I should get my deposit back months later down the road as well.

I'm not saying what schools do with these deposits are right or wrong...but these comments are just about what I think are the legal obligations.
 
From the Florida Bar Association:
http://www.flabar.org/tfb/TFBConsum.nsf/0/b602a1159d3529ba85256b2f006c5ee2?OpenDocument

"An agreement to do something or pay something can become binding upon you if the other party acts to his or her detriment upon your promise or agreement to perform, even though they pay or give nothing in exchange."

My interpretation of this is that if the school turns anyone away because you told them you were coming (by sending in the money) then your contract is binding and you're going to end up owing them money

To those who say there was no contract... imagine the opposite had happened. imagine that the money had been sent and cashed, but then the fall comes around and the OP shows up for school only to be told that the school actually decided that his/her seat should be given to someone else because they had "buyer's remorse" for offering admission to the OP? at what point did the contract actually begin? my assumption is that a lawyer would say it initiated when the check was written and submitted with the acceptance of admission.

But doc, again, the spot in class was given before any sort of check was written. The school reserves the right to take it away if they don't get the money, and that's exactly what they did... The money's required to hold a spot. If the money's not paid, the spot's not held, and everyone moves on except for overzealous administrators who can't stand to see a thousand dollars get away
Click to expand...

the appearance of the money being paid was in fact made when the check was cut and sent to the admissions office. that's the problem that the school is having with the actions of the OP. had the check never been sent the school would have no problem at all.

to the OP, go see a lawyer. talk to a person who isn't just speculating about the legality of your contract/non-contract.

for the record, i'm not advocating the school's right to overcharge... i'm just saying that i believe that the contract was initiated at the release of the check and that failure to send them money will end up being more detrimental to the OP than losing $1000. when you're trying to borrow private loans to pay for medical school and those loans are not fixed interest rates, your credit score can affect your borrowing power. being turned over to a collection agency 6 months before trying to get loans is probably not going to help you get good interest rates... being practical is not always about doing what you think you should be able to do.
 
All the conditions for a valid enforceable contact is in place. There was an offer (could be made verbally or written). There was an acceptance (the school's possession of the check). There were proper considerations for both side (the school get $1000, the OP gets a spot held for admission). The terms were known, and the OP didn't send the check under duress, fraud, or misrepresentation. Unless the terms of the acceptance violate state law, the contract is valid and enforceable in the eyes of the court.

The school is entitle to enforcement of terms of the contract. The court may order the OP to pay $1000 (and in return, order the school to once again hold a spot for him/her until the OP indicates to the school that he/she will no longer be attending)

I agree that the amount of deposit require is ridiculous but it is legal under the eyes of the law (at least that's what several of my friends in law school told me - but again, due to specific laws of the state and case laws, you need to consult an attorney for proper legal advice).

I'm also pretty certain that there is no buyer's remorse protection here, since the school didn't go door-to-door offering their goods.
 
So this is the time when litigation should benefit everyone. It will help settle more than just one issue. Fortunately/unfortunately, smart people, and that include attorneys for both sides, don't always go to court. I wouldn't be surprise to learn that out of court settlement between both parties leaves every one hung in here helplessly.
 
Osteopathic students, generally are probably not happy about the fees. I'm not either. However, you are aware of the fees going into this venture. Once the decision was made and the check sent, there was the commitment on the part of the school to hold the seat AND a commitment for the student to attend.

There was a recent post by a student who accepted at Touro, sent in her deposit ($2,000.00) only to hear the next day that she was also accepted at her first choice school. The student had to eat the $2,000.00 deposit. It's just the way this system works for many reasons.

Breaking that commitment on either side, is a breach of the agreement. Think of it in this fashion. How would you feel if you sent in your check and they later sent you back your deposit saying that they changed their mind and gave your seat to someone else....


OUCH
 
OP: you're obligated to pay the $1000. You received consideration (the seat), a letter with the offer outlined, and you consumated the deal by adhering to the terms of the offer by providing consideration ($1000). Since you mailed it, the deal is dated with the postmark.

While $1000 is high, everyone recognizes why DO schools utilize this stinger. The school has incurred expense on your behalf. They have processed the paperwork to include you as a student (or at least will make it seem like a burden), deposited your check, and credited your financial account. Many people touched your paperwork and check. When you stopped payment, the check was returned with a charge to the school from their bank.

So to say there out nothing is false. Only the amount is in dispute. They are out about $100. But according to the contract you executed, you owe the $1000. That is covered by the deposit being non-refundable.

Legally, your screwed. Best bet is to have an attorney call on your behalf and negotiate the end of this. You can refuse to pay, but they gotcha. Only question is how much effort will the school expend to get the moola. If their position is rooted heavily in the principle behind the deposit rather than the money itself, they may fight fiercely. We can all recall personal experiences where we have fought to right a wrong, to not let someone screw us, even if the amount was $50. The efforts and time may have cost you more than the original transgression.

If you don't pay or settle, the ball is completely in the schools hands. Are you attending an allo or osteo school? Might osteo schools make waves in the osteo circle, like reporting you as in bad standing, with a financial obligation. It could keep you from taking COMLEX and progressing past 2nd year.
 
Originally posted by Radman

There was a recent post by a student who accepted at Touro, sent in her deposit ($2,000.00) only to hear the next day that she was also accepted at her first choice school. The student had to eat the $2,000.00 deposit. It's just the way this system works for many reasons.

OUCH
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That student also ended up paying another deposit at another COM closer to home. Luckily, that was also the closest one to his home. And we heard of DO enthusiaststic applicants that applied too 7-8 schools too.

I myself was trying to remind fellow applicants about the $2,000 question. But I was fooling around too much then.

While it takes some good planning to deal with such questionable tactics, it is also true that every one should try his/her best to keep it up with the consequence of this highly competitive transaction in real life. Although my gut feeling is the same as the OP's, I think that I know what my decision would be. A dog should know how to retaliate another dog that is trying to eat it. Besides, all those schools could stand a chance to lose it big too. Whether or not the ref is goog or bad, the outcome of this game is still unpredictable. If the schools should lose, would they be resposible for all those nonrefundables that they took in plus something? Half of people who litigate always have a chance to say that the system works here. After all, it's still business as usual and my pre medical perspective on this subject should strictly be consumer oriented.
 
i wouldnt pay. i mean cmon, its january. you know that that school is going to fill that seat that you left behind with no problem whatsoever, thus costing them nothing. they just want to bully you around.
 
Yeah seriously, I agree with all those arguing payment isn't necessary here. Legally, I doubt the school is going to bother going after a grand, considering how much they rake in every year. Ethically, you should realize a private school will screw you out of every dime possible. Don't spoil the school any more than it is!
 
Wow! I'm so proud of my fellow SDN'ers and their knowledge of the law! It warms my heart...

Just a couple of points to add: 1) On the question of the "contract" of a check. People can be bound by much less than that. In one of my law classes we studied a case where a couple had to leave a cruise early because the wife was sick. They asked for a refund, didn't get one, and decided to take cruise line to court. Their case was tossed out because there was a clause on the back of the ticket (!) specifying the jurisdiction of *any* cases involving the cruise line. Naturally, they appealed...and they lost. Point is, they took the ticket into their possession...they went on the cruise...and they accepted the terms that went along with that ticket--even if they never even noticed the clause!

(2) Ignorance of the law is no excuse. Even if you didn't know that the deposit was non-refundable, you were still bound by the terms of that contract as soon as you accepted their acceptance. If you send your acceptance via a method with reasonable probability of delivering it, you can consider it as good as delivered. In fact, I just confirmed this with my sister a few days ago (L1) because I was afraid OU-COM didn't receive my deposit. It hasn't cleared my bank yet.

BTW, this issue won't be settled by demanding a cashier's check or money order. The only difference between a cashier's check and a personal check is availability of funds. The acceptance of the terms of the contract still exists, whether you sign anything or not. The cashier's check will make it impossible to stop payment if you regret your decision, but the end result is the same--you owe the school money, even if you decide not to go there.

It matters not whether that spot is filled by another student. The school has still lost $1000. The student who takes that spot will also pay $1000. He/She will probably get to apply it to tuition, so really--the school probably has a "greater" damage from the check the OP sent. I know OU-COM has a two installment deposit. It would seem that the first deposit really only holds your seat until the second one is due. Then you must re-confirm your intention to attend with a second deposit. Then you confirm it again when you enroll and pay tuition.

Yep, it's a lot of money and it really sucks. But the truth is....you owe it. Now....you can try to call and smooth things over, maybe work out an agreement. You could try ignoring it and see if it comes back to haunt you (not recommended). Or you could go talk to a lawyer and see if there are any other options. In the end, though, I think this can only get *very* ugly for you and hardly affect the school at all.

Hell...if I thought I could just stop payment on a check after I sent in a deposit, I'd be more likely to secure a place at any school that would have me! Obviously, when the OP sent in the check, he thought $1000 was a fair trade for a spot in his #1 school. The school did not break their end of the deal here. They received some written confirmation of the OP's intention to enroll (a personal check for $1000). Based on that confirmation, they are prepared to secure a seat for him. That is the "meeting of the minds" necessary for a contract--even if one of them was fuzzy on some of the details. By stopping payment, the OP breaks that contract--just as if he'd failed to enroll. There is no longer any reason to reserve that spot for him (and who would want to if you stopped pay on the check?) So the school informs him his seat has been relinquished. That is within their right according to the terms of the contract. It is also well within his rights to not enroll; however, the terms of the agreement clearly state--in writing, no less--that by failing to enroll, you forfeit the deposit. Again, it doesn't matter if they've cashed the check. Both parties understood that the check represented the OP's intentions and the consideration for the school.

Be smart. Your credit rating isn't worth $1000. If you plan on renting an apartment or having any utilities in your name, you're going to need to pass a credit check. They aren't going to look favorably on your explanation of "buyer's remorse."

Oh...and calcrew...it's a DO school. OD schools turn out optometrists. 🙂

Willow
 
Originally posted by WillowRose


BTW, this issue won't be settled by demanding a cashier's check or money order.

Oh...and calcrew...it's a DO school. OD schools turn out optometrists. 🙂

Willow
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1) I predicted that schools will require deposit payment in the form of cashier's check or money order to prevent any cancellation. I doubt if a mean of payment would help settle these issues.

2) I would like to see such a case go to court because I think that the outcome would help settle some issue here. But my desire isprobably worth nothing more than recreational. I know nothing about laws. And my common senses? Always questionable. How come everyone who rear-ended my car said that I was backing up into them. 😕

3) I appreciate no one misunderstood me the way I sound as if I was against OD... I mean DO schools. I am always proud to say that there are only 5 MD schools rank higher than the two DO schools that I apply for. As a matter of fact, right from the beginning of the process, I always know that I am going to a DO school.

Everyone on this thread is 👍 :clap:
 
Calcrew,

I understand your points completely--and mostly agree with them! I agree that money orders would help avoid problems with buyer's remorse. I just wanted to point out that a personal check vs cashier's check doesn't affect whether or not there was a contract present.

2) Court? Yeah, that would be nice, wouldn't it? However, there are plenty of reasons why a case like this probably wouldn't make it into court. It costs too much for a school to pursue litigation compared to the compensation. Most judges are going to encourage (read: strongly encourage) arbitration to work out a settlement because dockets are crammed with more important issues. Oh...and who is going to try to get blood out of a turnip? Trust me...I sued an ex-tenant and it was a whole lot of me going to the courthouse and her not showing up.

3) Never misunderstood you for a minute....just feeling a little froggy and had to comment on it! ;-)

Willow
 
Well, if the amount in dispute is $1000, the school could pursue this case in small claims court. In most states, the OP must show up in court or else the OP lose by default. The school's lawyer just needs to fill out the paperwork and a small court fee.

To those asking the OP to take a stand - it's small claims court. Its ruling (or nonruling) probably won't set any precedent. It also won't bring much public relations nightmare either.

This might be a diversity issue (two citizens from two different states) but the amount is too small for a federal court to pick up. Ack, it's been too long since I had contract law.
 
I know after all of the previous posts, you don't need another opinion, but here it goes.

$1000 is ALOT of money for most people, especially for college students with working class parents. Now it is true, you should have thought a little more about your decision before you sent the $1000 because that is an awful lot of money. But you can't change the past, you cancelled the check.

I also don't suggest you send the money in, the fact that you were even able to cancel it means that they had not recieved your money before you changed you mind. If you had not signed any paperwork or contract when you sent the check then they have no basis for a claim. I am sure they won't bring charges against you, they may just want to teach a lesson, but it is possible that you may be sent to a collections agency. You're credit will be affected some-- but it won't be shot simply because the credit bureau doesn't rate education "credit" (such as school loans) the same way they might rate a credit card. I say make up an extenuating circumstance like a family crisis as the reason and settle it with the school before it gets ugly.
 
Don't take the legal advice of anyone on SDN. Call a Lawyer in the county where the school resides. They will know the law and will be able to answer your question appropriately. If this results in losing the $1000, then so be it. It is in your best interest to seek legal advice asap.
 
Jollibee,

I spoke to a DA friend and he said that the small print in the secondary makes a difference in favor for the medical school.

However, he doesn't think the difference is decisive. In fact, if you correspond w/ the school again, you should deal w/ the contract issue directly. Tell it that, while you regret the inconvenience caused to the school, you believe were never fully admitted, nor was there a completed contract because you cancelled the check. And since there was neither an admission nor a contract, you're neither obligated to pay the deposit nor was the school damaged. He said this is a somewhat technical argument, but the proper argument.

Good luck dealing w/ the Moneygrubbers
 
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