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Renege after paying deposit

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Renege after paying deposit [#permalink]

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New post 20 Dec 2011, 14:05
Hello everybody,

I have been following discussions on the forum for quite a long time and finally decided to post.

I was accepted by my second-best Business School for the spring term (say School B), for which I paid a deposit to secure my place in class.

However, a few days ago I was called back from the waiting list by my first-choice school (very top tier, say School A). I now have to decide whether to accept the offer from my preferred school, and renege on my acceptance to the other second-best school (which means I will also lose my deposit).
What makes me feel bad about taking such a decision is that it will come with a very short notice to School B (consider I had accepted for the Spring term, which is going to start in just a few weeks, so that they will likely have very little time to find another candidate, or leave the place vacant).

I am now wondering what are the risks involved in reneging after accepting an offer for admittance and paying deposit?
Basically, this turns down to the following two questions:

- Can School B retaliate in some way on me or on School A, other than taking my deposit? How far can the consequences go (please, feel free to share "horror stories")?
- Shall I be transparent and tell School B that i decided to go to School A instead? Shall I not tell them I will be attending School B, how likely is it they will eventually find out and retaliate?


I would really appreciate any help in sorting this kind of ethical dilemma. It is really making me sleepless.

Thanks a lot!!!
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Re: Renege after paying deposit [#permalink]

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New post 20 Dec 2011, 14:51
I would go where you want to be at. You will be happier. I do not think there is anything they can do for to you or the school. In terms of how you tell them that is up to you. I would just make sure not to burn any bridges, you never know when that may come back to haunt you.
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Re: Renege after paying deposit [#permalink]

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New post 20 Dec 2011, 14:59
You are about to make a substantial investment in your MBA education... and you have a chance to do it at your top school... i would give up the deposit and go with my top choice. Would 5k (im assuming this is how much it was) make such a huge impact on your life a few years from now? Probably not. Would going to your top school make an impact on your life? Definitely.
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Re: Renege after paying deposit [#permalink]

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New post 20 Dec 2011, 15:04
I don't see it as an ethical dilemma. When you paid your deposit you were intent on going to School B, and in the meantime things have changed. School B still comes out of the deal with your deposit money. Just tell them you've decided to attend another school. I'm guessing most schools are used to dealing with that sort of situation and know how to handle it.

I had to do the same thing last year after I put down a deposit for one of my R1 schools then was accepted to one of my R2 schools. It's not a big deal.
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Re: Renege after paying deposit [#permalink]

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New post 20 Dec 2011, 15:21
It shouldn't be a problem, unless you applied early decision for School B.
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Re: Renege after paying deposit [#permalink]

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New post 21 Dec 2011, 01:06
Thanks everybody for your kind replies! These were definitely helpful.
The AdCom staff at school B has been extremely helpful throughout the entire process, so I think it will be polite to say thank you and be transparent about my decision.
I am just wondering whether there may be any consequences in telling them "I am going to school A" instead of, say, make up some personal/ family reasons. Still I think that in some way they will eventually know I did choose to attend school A.
What makes me really feel bad is that classes at School B start in just a few weeks, so that it would come to them almost as a "no show".

Would be great to have also the opinion of some of the MBA consultants here, which I assume would be better acquainted with how things at AdComs really work. Do you have any suggestion?
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Renege after paying deposit [#permalink]

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New post 21 Dec 2011, 03:41
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It's okay. You can let them know the truth, being kind about it. It's probably the best. What might happen is they might come back with an offer for some extra scholarship which you might accept or refuse. But they have been doing this for longer than you. They know the game. You have to choose what is best for you and your life, and being transparent about it, is only respectful. A few K is also no big deal, in the scope of things.
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Last edited by JonAdmissionado on 14 Feb 2017, 05:41, edited 1 time in total.
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Re: Renege after paying deposit [#permalink]

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New post 21 Dec 2011, 04:58
Many thanks Precisionessay!
I am mostly concerned that reneging one school may somehow put at risk my acceptance at School A if information is shared among schools.

I heard "horror stories" about people reneging on Early decision at some school, and then also losing acceptance to all other schools they had applied as soon as the reneged upon school shared the information (please note I did not apply early decision, just regular decision, so I did not take any "binding" commitment other than paying my deposit not to loose my place in class). Therefore I am a little bit worried about what the legal consequences of a renege at this point in time may be.

Many thanks!
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New post 21 Dec 2011, 06:06
marvan53 wrote:
Many thanks Precisionessay!
I am mostly concerned that reneging one school may somehow put at risk my acceptance at School A if information is shared among schools.

I heard "horror stories" about people reneging on Early decision at some school, and then also losing acceptance to all other schools they had applied as soon as the reneged upon school shared the information (please note I did [b]not apply early decision, just regular decision, so I did not take any "binding" commitment other than paying my deposit not to loose my place in class[/b]). Therefore I am a little bit worried about what the legal consequences of a renege at this point in time may be.

Many thanks!


Then you have nothing to worry about. Trust me, this isn't the first time they've seen this situation.
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Re: Renege after paying deposit [#permalink]

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New post 21 Dec 2011, 12:36
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IMHO as long as the school still can take students on your seat, that is perfectly ok to resign! In that way you do what you want, somebody else takes your seat and the school stays with some $ for 'moral compensation' :)
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New post 09 Feb 2017, 12:28
Hello from the GMAT Club MBAbot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
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Re: Renege after paying deposit [#permalink]

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New post 10 Feb 2017, 06:41
marvan53 wrote:
Hello everybody,

I have been following discussions on the forum for quite a long time and finally decided to post.

I was accepted by my second-best Business School for the spring term (say School B), for which I paid a deposit to secure my place in class.

However, a few days ago I was called back from the waiting list by my first-choice school (very top tier, say School A). I now have to decide whether to accept the offer from my preferred school, and renege on my acceptance to the other second-best school (which means I will also lose my deposit).
What makes me feel bad about taking such a decision is that it will come with a very short notice to School B (consider I had accepted for the Spring term, which is going to start in just a few weeks, so that they will likely have very little time to find another candidate, or leave the place vacant).

I am now wondering what are the risks involved in reneging after accepting an offer for admittance and paying deposit?
Basically, this turns down to the following two questions:

- Can School B retaliate in some way on me or on School A, other than taking my deposit? How far can the consequences go (please, feel free to share "horror stories")?
- Shall I be transparent and tell School B that i decided to go to School A instead? Shall I not tell them I will be attending School B, how likely is it they will eventually find out and retaliate?


I would really appreciate any help in sorting this kind of ethical dilemma. It is really making me sleepless.

Thanks a lot!!!


It sounds like you are leaning toward your top school- which is what I would recommendl. Losing the deposit is just a cost of doing business and schools know this- I wouldn't worry about any long term consequences (other than not getting your deposit back!)
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Re: Renege after paying deposit [#permalink]

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New post 10 Feb 2017, 11:59
marvan53 wrote:
Hello everybody,
Unless this was a binding early decision, then I think I would not stress. Yes- not ideal but I don't think other than losing the deposit there will be long term consequences for you. Hope that helps.
I have been following discussions on the forum for quite a long time and finally decided to post.

I was accepted by my second-best Business School for the spring term (say School B), for which I paid a deposit to secure my place in class.

However, a few days ago I was called back from the waiting list by my first-choice school (very top tier, say School A). I now have to decide whether to accept the offer from my preferred school, and renege on my acceptance to the other second-best school (which means I will also lose my deposit).
What makes me feel bad about taking such a decision is that it will come with a very short notice to School B (consider I had accepted for the Spring term, which is going to start in just a few weeks, so that they will likely have very little time to find another candidate, or leave the place vacant).

I am now wondering what are the risks involved in reneging after accepting an offer for admittance and paying deposit?
Basically, this turns down to the following two questions:

- Can School B retaliate in some way on me or on School A, other than taking my deposit? How far can the consequences go (please, feel free to share "horror stories")?
- Shall I be transparent and tell School B that i decided to go to School A instead? Shall I not tell them I will be attending School B, how likely is it they will eventually find out and retaliate?


I would really appreciate any help in sorting this kind of ethical dilemma. It is really making me sleepless.

Thanks a lot!!!

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Renege after paying deposit [#permalink]

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New post 10 Feb 2017, 23:25
StratusMBACounselor wrote:
marvan53 wrote:
Hello everybody,
Unless this was a binding early decision, then I think I would not stress. Yes- not ideal but I don't think other than losing the deposit there will be long term consequences for you. Hope that helps.
I have been following discussions on the forum for quite a long time and finally decided to post.

I was accepted by my second-best Business School for the spring term (say School B), for which I paid a deposit to secure my place in class.

However, a few days ago I was called back from the waiting list by my first-choice school (very top tier, say School A). I now have to decide whether to accept the offer from my preferred school, and renege on my acceptance to the other second-best school (which means I will also lose my deposit).
What makes me feel bad about taking such a decision is that it will come with a very short notice to School B (consider I had accepted for the Spring term, which is going to start in just a few weeks, so that they will likely have very little time to find another candidate, or leave the place vacant).

I am now wondering what are the risks involved in reneging after accepting an offer for admittance and paying deposit?
Basically, this turns down to the following two questions:

- Can School B retaliate in some way on me or on School A, other than taking my deposit? How far can the consequences go (please, feel free to share "horror stories")?
- Shall I be transparent and tell School B that i decided to go to School A instead? Shall I not tell them I will be attending School B, how likely is it they will eventually find out and retaliate?


I would really appreciate any help in sorting this kind of ethical dilemma. It is really making me sleepless.

Thanks a lot!!!


Hi StratusMBACounselor

Does Early decision refer to Early round decision?
If yes then-->
Just out of curiosity ->What are the Implications a candidate might face if this was actually a Early Decision?


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There have been a few discussions on the ethicacy of reneging on the EA binding agreement....
https://gmatclub.com/forum/serious-ques ... 31419.html
https://gmatclub.com/forum/dilemma-with ... 87924.html
more....
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Re: Renege after paying deposit [#permalink]

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New post 13 Feb 2017, 13:58
If you are saying this was a binding option- in other words when you applied it was clear that if admitted you would attend, then that is really a matter of ethics here. There were other rounds to apply in if you were not going to accept- and in fact the odds were probably in your favor if you were considered among candidates who made it clear this was their top school. So as a member of AIGAC, and also just as someone who prefers to have their word mean something, I would say you should honor your word in this case. If in fact you applied under those conditions, you really should not have applied anywhere else. So that's really the official line on that and I'm not sure I can say it any other way. I am not sure which schools you are speaking about so I can't be sure this was the case from what you said. If you did apply through a regular non-binding round it is also not ideal to not attend once you deposit but you were not admitted under special assumption that you would attend if accepted. I would say this is one for you to do some soul searching on- and not just think about what you "can" do but this is an opportunity to demonstrate that your word means something. If there are other parts to this that I don't know there may still be some other options to consider- like talking directly to the school and seeing how they feel about it. Only you know all the details here- and I wish you the best as you think through all this.
stonecold wrote:
StratusMBACounselor wrote:
marvan53 wrote:
Hello everybody,

Unless this was a binding early decision, then I think I would not stress. Yes- not ideal but I don't think other than losing the deposit there will be long term consequences for you. Hope that helps.
I have been following discussions on the forum for quite a long time and finally decided to post.

I was accepted by my second-best Business School for the spring term (say School B), for which I paid a deposit to secure my place in class.

However, a few days ago I was called back from the waiting list by my first-choice school (very top tier, say School A). I now have to decide whether to accept the offer from my preferred school, and renege on my acceptance to the other second-best school (which means I will also lose my deposit).
What makes me feel bad about taking such a decision is that it will come with a very short notice to School B (consider I had accepted for the Spring term, which is going to start in just a few weeks, so that they will likely have very little time to find another candidate, or leave the place vacant).

I am now wondering what are the risks involved in reneging after accepting an offer for admittance and paying deposit?
Basically, this turns down to the following two questions:

- Can School B retaliate in some way on me or on School A, other than taking my deposit? How far can the consequences go (please, feel free to share "horror stories")?
- Shall I be transparent and tell School B that i decided to go to School A instead? Shall I not tell them I will be attending School B, how likely is it they will eventually find out and retaliate?


I would really appreciate any help in sorting this kind of ethical dilemma. It is really making me sleepless.

Thanks a lot!!!


Hi StratusMBACounselor

Does Early decision refer to Early round decision?
If yes then-->
Just out of curiosity ->What are the Implications a candidate might face if this was actually a Early Decision?


Regards
Stone Cold

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Re: Renege after paying deposit [#permalink]

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New post 13 Feb 2017, 21:19
It is really an ethics and a cost issue for most schools. The fine print in some school's honor codes upon accepting will threaten potential legal action but I have not heard this ever coming to fruition. So it is really just in poor taste and you lose some money but ultimately you have to do what makes sense for you and your career given the constraints
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Re: Renege after paying deposit   [#permalink] 13 Feb 2017, 21:19
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