Beware of deceptive contractors for renovations,
A warning has been issued regarding scam tradespeople targeting home renovators.
This alert comes as the consumer watchdog monitors fraudulent activities.
One common tactic involves asking for wire money transfers.
Homeowners who pay large deposits often discover the work remains unfinished.
Complaints lodged with the government reveal this troubling trend.
In the last year, Consumer Protection in Western Australia received 25 complaints.
These complaints concern tradespeople demanding full payment or deposits upfront.
However, many of these tradespeople fail to complete the work promised.
Some complaints specifically mentioned excessively inflated deposits as well.
Consumer Protection has issued a warning regarding deposits requested by tradespeople.
Although tradesmen can ask for a deposit, the amount they request is important.
According to the government body, “tradespeople are legally allowed to ask for deposits.”
However, many consumers report issues with large deposit demands or full payments upfront.
These tradespeople often fail to complete the work they promised, leaving homeowners financially affected.
Payment methods that offer some protection include PayPal and credit cards.
Using a secure payment system like PayPal allows access to dispute resolution services when necessary.
Additionally, if you pay by credit card and do not receive your order, you can request a chargeback.
It is crucial to avoid sending money through wire transfers, as this is a common scam tactic.
Consumer Protection recommends that homeowners provide a deposit of no more than 10 percent.
For larger projects, paying in installments is advisable to manage financial risk.
If a tradesperson identifies another issue while working on your project, certain rules apply.
For unsolicited work, businesses must observe a ten-business-day cooling-off period before starting the job.
This rule applies especially if they collect payment before this period ends.
For example, if a tradesperson is fixing a broken tap and notices other issues, they must follow these rules.
You have ten days to reconsider the additional work without facing financial penalties.
Moreover, if a trader cancels a contract after taking a deposit, they must return the full amount.
In Western Australia, tradespeople cannot accept a deposit exceeding 6.5 percent for residential work over $7,500.
Consumer Protection emphasizes the importance of these regulations to safeguard homeowners.
