Unregistered renovation company ordered to return RM15,000 to claimant

A security company branch manager learned an unfortunate lesson after engaging a home renovation contractor who was not registered with the authorities.

After realising he had been cheated, he lodged a police report and took the matter to the Johor Baru Consumer Claims Tribunal.

K. Loganathan, 45, had hired the company in Taman Mewah, Kulai, to renovate the car porch of his new double-storey house at Scientex Eroca Hills in Kelapa Sawit, Kulai.

The initial renovation cost quoted was RM45,000 but the contractor decided to give a discount of RM7,000, bringing the final total to RM38,000.

Loganathan said the first payment of RM5,000 was made via bank transfer on Jan 26 followed by the second and third payment of RM5,000 on Feb 11 and Feb 22, respectively.

The contractor was supposed to start work after receiving the first payment but the claimant was asked to pay a 50% deposit of the RM38,000 first.

Loganathan did not pay and on April 19, the company demanded that full payment be made.

This prompted Loganathan to lodge a police report the next day.

“I did some research and discovered that the company’s licence had been revoked by the Construction Industry Development Board (CIDB) on Nov 2, 2020.

“It was my fault for not checking the company’s background before hiring them. I urge others to learn from my experience,” Loganathan said, adding that he had found the company through social media.

Tribunal president Lee Chee Thim ordered the company, which did not send a representative to the hearing, to return RM15,000 to Loganathan within two weeks.

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