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C.1 This appendix contains provisions relating to protection of prepayments in consumer codes approved by Chartered Trading Standards Institute (CTSI) under its Consumer Codes Approval Scheme:1

Code Sponsor Prepayment Protection

Bosch Car Service

BCS garages will:

 In the event of a prepayment or deposit being made, provide a clear receipt which details the value of the payment made and the exact nature of the product and/or services that this payment relates to.

 Confirm to the customer how such a deposit or prepayment is protected by Bosch in the unlikely event that the BCS garage ceases to trade.

British Association of Removers

Where agreed services cannot be delivered because of company failure (e.g. liquidation or bankruptcy) BAR will endeavour to obtain the

services of another BAR Member to complete the contract.

In the event that arrangements above are not feasible and pre-payments have been made which cannot be refunded by the Member because of company failure, the Customer may apply for recompense from the BAR Pre-Payment Protection Scheme.

British Healthcare Trades Association

Where refundable deposits/advance payments are taken, a protection mechanism such as placing these in a separate account, must be in place to ensure that consumers are returned their money without undue delay.

Checkmate

The Code is a mandatory set of requirements to ensure best practice before, during and after the purchase of a Home. The Code applies to all homes with a Checkmate Warranty that has an effective date after 30 April 2014. All Builders who provide a Checkmate Warranty agree to comply with the Code.

Checkmate Warranty: an insurance-backed warranty providing the Buyer with cover for loss of Contract Exchange deposits and damage caused by defects as set out in the policy documents.

The Builder must ensure that that Buyer is aware of the deposit

protection covered under the Checkmate Warranty and section 10 of the Code.

Debt Managers Standards Association (DEMSA)

All clients’ money must be held in separate, ring fenced bank

accounts that are not available for use by the member for the purposes of its own business.

1 This table is up-to-date as of May 2015.

Members must demonstrate, by annual audit certificates from a chartered accountant, that client monies are held in a separate “ring fenced” bank account that would not be at risk in the event of a member ceasing to trade, and is not usable by the member for the purposes of its own business.

Institute of Professional

Willwriters

Members who accept any payment made in advance shall be required to take part in a prepayment protection scheme to the satisfaction of the Sponsor.

Members shall provide the Sponsor with proof that they have

arrangements in place to protect and refund funds held on behalf of a client in the event of misuse or business failure.

Motor Codes (new cars)

We would advise you to be aware of who any deposit is being paid to and its security, along with the cancellation terms.

Motor Codes (service and repair)

We will not require deposits or prepayments for service and repair work.

Motor Codes

The Carpet Foundation has developed a scheme to protect deposits (of up to 50% of the order value) to enable it to complete a carpet

installation if the retailers business fails. The Scheme does not make a monetary recompense but relies on the consumer contributing the deposit balance of the originally quoted order. The Carpet Foundation, with the help of its suppliers and using this balance, will fulfil the order as originally quoted. For this reason deposits greater than 50%

cannot be protected.

Additional protection of deposits affected by liquidations is afforded by using a credit card to pay the deposit subject to a minimum total purchase price of £100.01 and it is recommended that this method of payment is used.

The Property Ombudsman (Residential Letting

Agents)

You must at all times keep clients’ money in a separate designated clients account held in a financial institution appropriately authorised under the Financial Services and Markets Act 2000 and where relevant comply with your regulatory bodies’

rules or byelaws in relation to the handling of clients’ money. The client should be advised that monies will be held in a designated client account.

The Property Ombudsman (Sales –

Residential Estate Agents)

In England, Wales and Northern Ireland

You should not take pre-contract deposits. However, in the case of new home sales, you may take into account specific instructions from sellers. If a deposit is taken, then a written receipt must be given, and the circumstances under which the deposit is held and any interest accrued are refundable, must be clearly stated in writing.

You must not hold a deposit, or any other money belonging to a seller or buyer client, unless you are covered by adequate insurance.

Any client money held must by law be in a separate client account or accounts, as set out in the Estate Agents (Accounts) Regulations 1981.

You must be able to account immediately for all money you are holding on behalf of a client.

By law you must not deduct any cost or charges from any client’s money you hold, unless your client has given you written authority to do so. You should ensure that your client’s authority is obtained at the time of the deduction or that you give your client sufficient notice prior to the deduction to object to it.

In Scotland

Estate Agents or anyone engaging in estate agency work cannot accept pre-contract deposits.

Renewable Energy Consumer Code

(RECC)

Code members will set out clearly in the contract the amount and timing of all payments required. If a Code member requires the consumer to pay a deposit when the contract is signed, this will constitute a

reasonable percentage of the estimated overall costs of the work as set out in the contract, for example 15 per cent. It should not exceed 25 per cent under any circumstances. Code members may only use this money for work under the contract, for example for purchasing goods. Code members will repay the deposit within 14 days if the contract is cancelled in line with the conditions set out in the Code. This is a very important requirement of the Code.

If the Code member subsequently requires a further advance payment to be made by the consumer, this must constitute a reasonable

percentage of the overall costs of the work and will only be used for work under the contract, for example for purchasing goods. Under no circumstances can the deposit and the further advance payment, taken together, exceed 60 per cent of the estimated overall costs of the work. Code members can only require a further advance

payment no more than three weeks before the agreed delivery date of all the goods to be installed.

Code members must protect any deposit and any further advance payment, such that, if they should cease to trade or become insolvent before the contract has been completed, the consumer will be able to have his or her contract completed at no additional cost by another Code member.

Code members may place such funds in a 'client' or other third party account or use the protected payment scheme which the Code administrator has arranged. The Code administrator has prepared guidance on third party accounts. Such funds must be separate from those accounts linked to the Code member's own credit and banking facilities and should only be used with the consumer's consent. (This can be obtained in advance when the consumer signs the contract.) Code members must arrange to insure all deposits and advance payments. The Code administrator has arranged a scheme with Quality Assured National Warranties (QANW) which Code members may use.

It is part of the Deposit and Workmanship Warranty Insurance

(DAWWI) Scheme. Code members may not require consumers to put in place their own insurance. Code members who take deposits and advance payments, and who cannot demonstrate that they have equivalent cover in place with an alternative insurance provider must take part in the Scheme. Code members must inform the Code administrator and consumers accurately about the arrangements they have in place to comply with this section of the Code.

Where a Code member uses a consumer's money, paid in advance, to purchase goods, and where those goods are delivered to the Code member, the Code member will hold the goods on trust for the consumer and will keep them separate from its own goods and those of third parties. The Code member will keep such goods

properly stored, protected, insured and identified as the consumer's property. The consumer should be able to inspect or repossess the goods at any time. The legal title to those goods, or the proportion of them that has already been paid for, should pass directly to the consumer. In this way, if the Code member becomes insolvent or ceases to trade (see glossary for definitions), before the installation takes place, the goods will remain the consumer's property.

VBRA (Vehicle Builders and

Repairers Association)

(Repairers’ code). If any pre-payment or deposit is required, the business will have a procedure in place for the handling and security of such monies to ensure, in the event of non-supply of services or goods, the pre-paid money is safeguarded and can be returned. The details of this procedure should be available on request from the member.

APPENDIX D

PREPAYMENT PROTECTION IN THE TRAVEL