Is it legal to charge us a cancellation fee without a policy in the contract? Posted on September 02, 2011

We booked a b&b in June. We did it in person after taking a tour of the location. We were not told of a cancellation policy and the document we signed did not indicate a cancellation policy. We had to cancel and did so more than 25 days in front of the reservation. The lodge owners say that their policy is to only refund if they rebook and if they do then it is the deposit - $100 - a 10% processing fee..So for example on a $190 deposit, the most they will refund is $71. (they keep $100 and $19) Is this legal since we were not made aware of or acknowledged such a ridiculous cancellation policy? I do not know if the category I selected is correct. None of the allowed categories seemed to be a 100% match.

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