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If possible, do not give the company a refund. Quite frankly, I'm sick and tired of companies using our services, and then not disclosing info, etc.In our contract, we have a clause that protects us in case of a deceptive hire. Since you signed their contract, you may feel stuck, but first try to talk to someone who will understand that this is not your fault.
I wish you luck. Perhaps you won't have to give the money back if you talk to the right person.
A quick update: talked with the client; cut a check; and, even mailed it. :)
Happy holidays, and a healthy and prosperous new year to all!
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