Many retirement homes who are working on the deposit model, have a component of the deposit that is defined as "non-refundable" This is a myth! Let us examine the reason why?
Deposit as defined in any dictionary is an amount that is placed as a security to ensure the performance or non-performance of an act or deed. It cannot be just a stand-alone deposit without any qualification. Remember interpretation of law is always based on the English interpretation of the words used.
Many such schemes have altered the wording to call in an "non-refundable admission fee" or an "non-refundable access charge" or something to that effect. However many others, in their arrogance or ignorance still persist with the old stand-alone definition.
These deposits can be recovered if there is a strong enough movement to do so. One case filed in court may be all that is necessary to trigger this movement. I will do so soon. Let us see what happens.
Any comments or views in contrary to mine are most welcome. It will help me build my defense!!
DON
While I share your anger at the high fees, and the need to clarify their meaning and intent, I am not sure the definitional argument will hold up. The word "deposit" has many more meanings than the one you mention, that of security. All of them have something to do with "placing" but not all with "returning." I would also argue that the words "non refundable" are pretty clear.
ReplyDeleteThanks for your comment.
DeleteI have never debated the "high" fees, since there was no transparency.Unless you have the cost figures one cannot say why are the costs so high. One has to go by the definition as in any good English Dictionary. I have not found any other meaning than the one mentioned by me.Also one has to remember that the entity taking this deposit is a registered trust and a non-profit organisation. Also I do not agree that by just calling it non-refundable, it becomes the same. Regarding placing, they take an amount of Rs.X. Of this they go on to say that Rs.Y is a Licence fee and Rs. Z are a non-refundable deposit. Since you have talked about placing,kindly give me an example where a deposit may be placed without any act or non-act associated with it.