If I pay for a service upfrontbut just part of the service is done and the company refunds less than I feel that I am owed?

UPDATED: Nov 11, 2011

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If I pay for a service upfrontbut just part of the service is done and the company refunds less than I feel that I am owed?

We paid upfront $700 for a lump sum contract. On the body of the contract says that if the contract was to be cancelled, the company would get paid whatever work they did to that point. We cancelled the contract shortly after, and they cashed our check for $700 and sent us a $200 refund. We don’t agree with the charges, can we dispute that in the small claims court?

Asked on November 11, 2011 under Business Law, Alaska


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If yo had an agreement in writing for a service with a company allowing you to cancel the agreement where you would get a refund for whatever amount of work that was not completed but actually paid for and the refund is less that you believe you are entitled to, you can file an action in small claims court for the difference.

Before you file a small claims court action, you should do a demand letter to the service provider stating the reasons why you believe you should be entitled to more and give a date for a response. Possibly you can resolve the dispute without having to go to small claims court.

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