Deposits - what to do when booking is cancelled

If someone has paid a deposit and cancels at the last moment, should the deposit be returned.

Someone booked my timeshare, and paid a deposit. Just before the balance was due, I was told that she wanted to cancel the booking and have her deposit returned because she had bought a timeshare herself!!!!!

This has caused us no end of worry and trouble, relisting, rejoining and many phone calls from the UK to the USA.

Have any other members had this experience - what do you advise?

In a word NO, the deposit should not be returned.

A deposit is a sign of trust between the renter and the rentee much like a down payment. Had she, or a close family member, taken ill then I would probably return her deposit, but her explanation for not sending the balance and requesting her deposit back is flimsy at best.

It's probably too late now for you to rent your timeshare, so in the end you have lost out on rental income because of her last minute cancellation. I would definitely keep the deposit.

Before you rent your timeshare next time, I would download (can also be sent by snailmail) a rental agreement from www.tstoday.com for a small fee with complete instructions on rental procedures that includes the signature of both the renter and the rentee. That way there are no questions as to what is expected of both parties.