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You withdrew. They kept the deposit and billed the year anyway.

Private schools, daycares, and camps routinely treat enrollment deposits, and sometimes an entire year's tuition, as forfeited the moment you sign. New York courts have repeatedly refused to enforce these clauses as penalties where the school's actual loss doesn't match what it kept, particularly when the seat was filled from a waitlist. A demand letter from counsel makes the school do the math.

Flat fee $499, signed by a licensed New York attorney, mailed within 48 hours.

Forfeitures must match actual loss

Under New York's common-law liquidated damages doctrine, a school keeping a deposit, or demanding a full year's tuition after early withdrawal, must show the amount reasonably estimates its actual damages. A school with a waitlist that refilled the seat may have no loss at all, and New York trial courts have applied this analysis to strike down tuition forfeiture clauses in individual cases.

Closure or failure to deliver is breach

If the program closed, cut its term short, or materially failed to deliver what was promised, that's the school's breach, and refund of prepaid amounts is the baseline restitution remedy.

Misrepresented terms trigger GBL 349

Where refund policies, program features, or enrollment terms were presented deceptively to consumers, GBL § 349 provides actual damages or $50 minimum statutory damages, treble up to $1,000 for willful violations, and attorney fees.

GBL § 349(h)

Questions before you start

The enrollment contract says tuition is due for the full year no matter what. Is that binding?

Not automatically. New York courts treat these as liquidated damages clauses and test them against the school's actual loss. Where the seat was refilled or the withdrawal came early enough to mitigate, lower courts have declined to enforce full-year forfeitures. Outcomes are fact specific, and the letter is built on your facts.

The camp shut down and offered a credit, not a refund. Do I have to accept?

No. If the provider failed to deliver the program you paid for, you can demand your money back rather than a credit on the provider's terms.

The school sent us to collections. Can a letter still help?

Yes. The letter disputes the debt, states the legal basis, and puts the school and its collector on notice that the claim is contested by counsel, which changes how collectors treat it.

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