Flooring chain closure puts consumer funds at risk

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Customers who have paid deposits to a chain of flooring stores which have closed down are asked to contact the liquidators of the company to register their details.

The four stores of the Perth Floor Centre at Belmont, Balcatta, Jandakot and O’Connor closed their doors on 16 July 2012 due to financial difficulties. Since then, more than 30 customers have contacted Consumer Protection each claiming to be owed thousands of dollars.

Commissioner for Consumer Protection Anne Driscoll said the closure of these stores highlights the danger of paying too much up front for goods and services.

“Consumers who pay large deposits and, in some cases the full amount, are really putting themselves at risk in the event that the trader goes under or fails to deliver,” Ms Driscoll said.

“Our strong recommendation to consumers is to pay as little as possible up front, if anything at all, and only pay the balance or full amount upon delivery of the goods or when the work has been carried out to the consumer’s complete satisfaction.

“For consumers who pay by credit card, they should apply for a charge back in the event of goods and services not being supplied after purchase.

“Consumers are also reminded that, for building work worth more than $7,500, a maximum of 6.5% deposit is allowed and it is illegal for larger deposits to be accepted by traders.”

Customers of the Perth Floor Centre who have money owing should contact the liquidator Melsom Robson on 6242 0700 from Monday 6 August 2012. A creditors’ meeting will be held at the Brisbane Hotel next Thursday 9 August 2012 at 10.30am. Affected consumers are invited to attend, but should first contact the liquidators.

 

END OF RELEASE

 

(Consumer Protection is a division of the Department of Commerce)

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Media Contact:

Alan Hynd  9282 0961 or 0429-078791  alan.hynd@commerce.wa.gov.au

Consumer Protection
Media release
02 Aug 2012

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