Many companies will ask for a deposit for work such as building work or booking a holiday, so as not to lose out themselves. If you have paid a deposit there are occasions in which you can claim it back, but often at the discretion of the trader.

The only exception to this is if the trader broke their agreement with the consumer or if it states a clause in a signed contract for deposit refunds. Depending on the individual trader there are times when they will refund your deposit even though they have been either left out of pocket or are entitled to compensation for the broken agreement.

Keeping a deposit is done so to deter people from time wasting or to act as a type of compensation for the broken deal.  If you simply have a change of heart the trader may keep the deposit as they may have already spent it on ordered goods.The main problem with leaving a deposit is that you must be sure that the company is legitimate. Paying a deposit with an unknown firm or company leaves the consumer open to theft of the deposit with the trader having no intentions or ever paying it back or getting the customer what they have ordered.

Unfortunately, the internet has opened up a whole new world of con artists. Being unable to see who you are dealing with and still leaving a deposit is never recommended and the consumer will have little rights over a fake company.