The Commissioner for Consumer Protection, Gary Newcombe has issued a public warning of the pitfalls of paying a tradesperson upfront for a home renovation or maintenance job.
“While tradespeople are legally allowed to ask for deposits, there are a few things we want consumers to know before paying them,” Mr Newcombe said.
“A common issue reported to Consumer Protection is traders who demand large deposits, or even full payment upfront, then fail to complete the agreed work, leaving consumers both out of pocket and without the work done.”
He said Consumer Protection had recently prosecuted the owner of an air-conditioning business for failing to supply goods and services after taking deposits as high as 60 per cent from several customers.
A dodgy tree lopper was another trader who continued to attract complaints and enquiries from consumers who, in many cases had been pressured to pay for the work upfront and never received a written quote, invoice, receipt or any other proof of the transaction as required by law.
“Paying upfront for goods or services puts consumers at risk if the business fails to deliver or goes broke,” Mr Newcombe said.
“That’s why we recommend paying only smaller deposits of about 10 per cent to limit that risk and to have greater bargaining power if something goes wrong.”
He said that for larger jobs, Consumer Protection recommended paying in instalments as goods were delivered and stages of the work were finished.
“In Western Australia, it is illegal for tradespeople to accept deposits of more than 6.5 per cent for building work valued at more than $7,500,” the Commissioner said.
“Paying by credit card is an option worth considering as it provides the protection of getting a charge-back if the goods or services aren’t delivered,” he said.
Consumers who may have paid a deposit but didn’t get the goods or services can lodge a complaint on the Consumer Protection website at this PS News link.
