- $2,500 fine and costs for not completing fencing work despite taking deposits
- Affected consumers only refunded shortly before case heard in court
- Advice for consumers to pay small deposits via credit card to reduce the risk
A Pinjarra tradesman who took upfront deposits for fencing jobs but failed to carry out the work has been fined by the Armadale Magistrates Court, following action from Consumer Protection.
Matt Richard Smith, the unregistered owner of Pinjarra Fencing and Gates, pleaded guilty to two charges under the Australian Consumer Law of wrongfully accepting payment and failing to supply the goods and services in a reasonable time. Mr Smith was ordered to pay $2,500 in fines and $688.80 in costs.
In June 2021, the business accepted deposits of:
- $1,000 from a consumer in Byford for the supply of fencing materials to build an enclosure to one side of a carport; and
- $1,700 from a consumer in Waikiki to supply and construct a fence.
The work was never carried out and refunds were only provided shortly before the matter was heard in court this year.
In his sentencing remarks, Magistrate MacLean said Mr Smith had given his customers the 'royal runaround' when it came to completing the work and refunding the deposits. Magistrate MacLean also took issue with Mr Smith's failure to communicate with his customers.
Commissioner for Consumer Protection Trish Blake said consumers who pay upfront deposits to tradespeople should rightly expect the work to be completed within the agreed time, or a reasonable time.
"Until recently, the affected consumers suffered financial detriment and stress after paying Mr Smith significant sums of money in good faith to undertake the work," Ms Blake said.
"Mr Smith promised to repay the deposits, however the consumers only recently received their money back. One consumer received payments spread out over roughly a year, while the other only received a refund the day before the hearing."
Ms Blake urged consumers to only pay a small deposit of about 10 per cent - or negotiate progress payments as work is completed - to limit the risk if something goes wrong.
"Just because a business might ask for a 50 per cent deposit, it doesn't mean a consumer has to pay it. Our view is that businesses should have sufficient cashflow to only require a reasonable amount of deposit for a job and then charge the balance on completion."
"A good option is to try to pay by credit card, which provides the protection of getting a chargeback if the goods or services aren't delivered.
"If you are entering into a building contract valued at more than $7,500, the builder is not allowed to ask for more than 6.5 per cent as a deposit."
Consumers having problems with businesses failing to complete work within a reasonable time, or within agreed timeframes, can lodge a complaint on the Consumer Protection website
