Are Preschool Fees a Racket?

I'm beginning to wonder if the whole non-refundable deposits & tuitions policy at many preschools is something of a racket. I just got off the phone with a school -- which will remain unnamed until the refund check is cashed -- that we applied to last spring and then ended up not attending.
Basically, I plunked down about $600 in deposits and first month's tuition with the promise that we could get three mornings a week of nursery school. But not as many spots opened up as we had expected, and the school offered us two days a week, which didn't work for me. I was fine giving up the deposit money (though it was a bit steep I thought). But when the director started giving me a hard time about refunding a month's tuition, I became suspect.
How can you be charged for a product or service you didn't get?
After days of playing phone tag and then haggling over money, the school offered me a partial refund, which I'm going to take and run. The whole episode has cost way too much money, time and stress. This is preschool, for crying out loud. Then again, this is L.A., where nothing related to schools is ever simple or straightforward.
Do you have your own war stories to share? I'd love to hear em. barbara.correa@dailynews.com or comment here.

Barbara Correa writes about work and family for the Los Angeles Daily News.

Hi,
I am the owner of a daycare in Atwater Village and we are not all in it for the money. Many parents say they want a space and change their minds last minute. We have a no refund policy usually to hold a real space and so we do not lose money holding a space for a child that might not use it. I know it is very hard for parents right now as far as preschool goes. I promise you that as a daycare owner we have a lot of pressure on us as well.