Scam tradesman trick warning for home renovators

A scam tradie warning aimed at home renovators has been issued, as the consumer watchdog keeps tabs on rogue behaviour.

Asking for a wire money transfer is a “trick” used by dodgy tradesman, and homeowners paying large deposits have found work was not completed, according to the complaints lodged with the government body.

In the past 12 months, Consumer Protection in Western Australia has fielded 25 complaints about tradespeople who demanded deposits or payment in full, but then did not deliver the job they were paid for.

Some of those complaints related to inflated deposits.

Consumer Protection has warned that although tradies are permitted to ask for a deposit, the amount matters.

“When it comes to deposits, tradespeople are legally allowed to ask for them,” the government body said in statement.

“However, 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.”

Payment methods that provide some protection include Paypal and credit cards.

“When it comes to payment, consider using a secure system like PayPal to access dispute resolution services if needed,” the statement said.

“If paying by credit card and you don’t receive your order, request a chargeback. And never send money by ‘wire transfer’ as this is a favourite trick of scammers.”

Consumer Protection recommends a 10 per cent deposit, and paying by installments for bigger, expensive jobs.

If a tradie points out another problem while they are on site for another issue or project, there are rules that apply.

“If the work is unsolicited, a business will be breaking consumer law if they don’t observe a ten business day cooling off period before starting the job and collecting payment,” Consumer Protection explains.

“For example, if a tradie is at your house fixing a broken tap, then they notice your hot water system needs replacing and they quote the job. You have 10 days to change your mind about this portion of the work without being financially penalised.

“If a trader was to cancel a contract after a deposit had been taken and no work had been performed or goods supplied, the trader is obliged to return the full deposit.”

Tradies working in WA are not allowed to bank a deposit of more than 6.5 per cent of the contract value for residential work that has a total value of $7500 or more, Consumer Protection says.