“Deposit Fraud” is one of the most common scam tactics where Renovators disappear, file for bankruptcy, or intentionally delay works after collecting a huge upfront deposit.
Protect yourself by taking note of the pointers below...
1. Check for Prepayment Protection
Sample of 100% Deposit Guarantee Performance Bond provided by CaseTrust-accredited RenovatorsIdeally, this protection should be endorsed by a credible third-party. For example, CaseTrust-accredited Renovators are required to provide Homeowners with a 100% deposit guarantee in the form of a performance bond to safeguard their deposits before work commences. This bond is underwritten by NTUC Income and works like an insurance where Homeowners can claim back their deposits in the event of closure, winding up and/or liquidation.
If your Renovator doesn’t provide a performance bond, it would be wise to request for alternative forms of prepayment protection e.g. penalty fees for extended delays, deposit recovery methods etc.
2. Make payments directly to the Interior Firm
Before making any payment, double check that it goes directly to the interior firm's bank account instead of the interior designer/sales rep's personal bank account.
See: 14 weeks' jail for interior designer who pocketed over S$20,000 from homeowners to settle gambling debts
