[Chambo]

I'm not even saying I am planning on doing it. It has crossed my mind though and I was wondering if anyone has tried or what people's thoughts were. I thought about the legality of it and if it is used as a quasi retainer, it would be completely legal, no? And while you are not guaranteeing funding, you are guaranteeing wiring the money back in the event of Funding or if you are unable to secure an offer. I probably should have said, this is all agreed to in writing.

All in all, I don't think I'd ever do it, legal or not but the concept does, theoretically at least make some sense.

Well, have it UNCROSS your mind, because it is illegal

[JSL23]

Well, have it UNCROSS your mind, because it is illegal

Wow, who pissed in your Frosted Flakes this morning Chambo?! I have clearly stated I am not going to do it, it is just an interesting thought. You should try having one sometime.

[DirectMedia_Scott]

I think I can actually add some insight. As previously stated, the laws vary state by state. Certain states have very very strict policies. Others are rather lax. If you look back to the hay day of the for profit debt consolidation industry, charging upfront fees is what ultimately lead to its upheaval. Once legislation came to have no upfront fees, the amount of companies in that space went from 200+ to about 5 in the course of 2 months. The same is starting to happen in the student loan consolidation space.

If you are going to charge up front fees, you are likely going to be putting your self in a legal grey area. Though these fees will help lower your overall cost per acquisition, the proposition of a state legislator coming after you would likely enough of a deterrent given the businesses and industries this practice has crippled in the past.