Delayed deposit refund? Anyone ever here of this?
 

I had to cancel my reservations at Goose Cove Lodge in Maine (we ended up renting a house for a week near friends), so I called to tell them. When I made the reservation, they took a $590 deposit on my Visa card.

The owner told me they might not credit my deposit for a couple of weeks! The reason she gave was that the lodge doesn't open until the end of May and they don't have "money in the machine", so until they open or until they get another deposit from a new reservation, they won't be able to credit my deposit.

This sounds very bizarre to me, would you be concerned? They can't cover a $590 credit? I've never heard of such a thing!

Also, I don't know if it matters but I made the reservations about 3 weeks ago for the August, and the Visa card is a debit card.

Concerned? I'd be irate. I would just immediately dispute the charge with Visa, if that's possible with the debit card. I've seen traveller advice that says to never use debit cards for deposits and such on hotels and rental cars because it's your cash that's being held hostage in a situation like this.

I am irate, especially since they immediately took my deposti (most places take your card number then don't actually charge you until the date of your stay).

I think I'll call my bank and see what they suggest. You're right about not using the debit card, big mistake. Believe it or not I only have a debit card, no other credit cards, I never want credit card debt so I have never used a "real" credit card. I should have used my husband's Amex.

I HATE debit cards and think they're really dangerous, at least in the US without PIN numbers.

I'd be irate, too. Did you ask them what they spent it on? :) If the deposit is supposed to be refundable, then they should still have it in their account until your stay. That's ridiculous.

Send them an invoice that includes your deposit with interest tacked on at 22.9% or whatever the legal max is in that state. I only use debit cards for things that I will immediately have in my hands that I know aren't going to brake or be defective, i.e. gas, groceries, my electric bill.

Having a real CC is also good because most will double the mfg warranty for many things you buy with them and some will provide rental car coverage though it's usually secondary. Having a CC doesn't need to equal debt.

I would call them and demand my money back immediately. Obviously they're operating on a shoestring if they spend advance deposits and can't cover them. Wonder how they were going to pay the help or the electric bill when you got there if they didn't happen to get some more deposits. What a rip-off place this must be.

And yes, never do a deposit except by credit card. It's the best protection you could have for such things.

Call the bank and dispute the charge. Oh, I love Capital One so much, just click on a charge online and the next day it's off the account.

Venusfan,
That's great about Capitol One! I think I'll get one. I know having a credit card doesn't = debt, I've had credit cards for years but since I literally never used them I got rid of them, I don't like clutter.

This gets better, I just reread my reservation confirmation and it states that cancellations are subject to a $50 cancellation fee. Are they for real? They want me to wait for my credit and they have the balls to charge a hefty cancellation fee!

" What a rip-off place this must be."

Neopolitan,
This isn't a cheap inn, it's an expensive place, been in business for years, it gets high marks from Fodors, Frommers, etc., is a member of small luxury hotels and is advertised on Luxurylink. You would think it was some fly-by-night joint with their business practices!

nina, make sure you post a review on Tripadvisor. Even though you didn't stay there, this will be a warning to others who are thinking about staying there. I read some of the reviews on Tripadvisor and it doesn't sound like a very nice place.

They cannot keep a deposit and thereby earn interest on it.

Nina:
I would call them back and ask how is it possible that they can't credit you since "the lodge doesn't opne until the end of May" then you should not have been charged until then either since it is not open, call them and ask that you want for the same person who did manage to open the place to charge you to come back and credit you ;))

According to their website, they will not refund deposits if cancellation done less than 60 days from date of stay or for holiday weekend. Seems like you are well within 60 days for an August reservation. If, however, it was including Labor Day, according to their site, they can keep all your deposit money - they give a detailed explanation of why they think they need to do this.

Still, even if it were over Labor Day, that is not what they told you - so it still does not seem right.

As far as keeping $50 - that is clearly stated on their website - they tell people in advance they will do that.

And as far as charging you immeditely at time of reservation - I have had that happen in many other instances. And if they say they will keep your deposit unless you cancel within certain time frames, that is why they do that.

Debit - vs credit card -- my Visa debit card has almost identical consumer protections to my Visa credit card - in past few yers got fine print mailing to that effect. Check to see if yours does, (may vary by issuing bank), because if it does, then you have contesting charge with card as another option. Good luck.

Nina - I'm sure others will mention this but, they absolutely cannot hold on to your money for "a couple of weeks" or whatever time-frame they see fit and then refund you. No way. Demand your money back immediately and if they do not agree or give you the same line, tell them you will report them to the BBB as well as the Attorney General's office. That should get them moving.

State of Maine Attorney General's Office http://www.maine.gov/ag/index.php?r=home

Thanks everyone, I am going to post this information on Tripadvisor. I called her back today to ask if she was going to make me pay the $50 cancellation fee and she claims she has no choice, it's the banks charge, she has to charge it. I don't believe it.

She also said she would do what she can to credit me within 2 days. If she wasn't going to charge the $50 cancellation fee (the reservation was NOT near Labor day), I would've let this slide, but since I think that charging a cancellation fee on a deposit that you won't refund immediately is beyond unreasonable, then I'm going to warn others.

Another unhinged traveler in the making. ;)

I'm also going to contact the Attorney General's office, thanks for the link Michelle.

Oh, and one other thing I forgot to tell you that ticked me off (the innkeeper needs some diplomacy lessons), when I called today and asked why the refund wasn't immediate, she had the nerve to say "Why, is it a financial hardship for you? Do you have to have the money right away?"

Big, big mistake lady. Very stupid thing to say to a potential customer, I had all intentions of one day staying at this inn, but those have disappeared. Instead I will investigate them and let others know what to expect.