I’ve read some articles regarding the previous incident where 2 spa companies closed down without notice. Something similar to what’s happening with the whole Wax In The City fiasco. We are a bunch of angry consumers that have paid for services that has not been and will not be delivered to us. Read: here and here

I’ve got a few issues to bring up with ABS Association of Banks Singapore, UOB United Overseas Bank, CASE and what ever government agency involved in such cases.

1. What does 0% installment really mean?

Well, I only found out today, as a victim of the recent closure of Wax In The City, that 0% installment means that the bank pays the company the total sum first, then they slowly deduct from us later. When I called UOB, they said there is nothing they can do to stop the monthly installment payments since the bank already paid the merchant. The solution they offered: go take it up with the merchant. Now I want to ask UOB, how am I suppose to take it up with the merchant when they have DISAPPEARED with my money! If the evil merchant had any intentions of cancelling my installment, they would have noticed everyone of their closure and done so in a professional manner.

Why aren’t the consumers notified of such things when we sign up for 0% installment plans? Did UOB or other banks enforce their merchants to inform the customers of the terms of the 0% monthly installment plans? I don’t believe I was made aware of ANY terms and conditions when I signed up with the monthly installment. It did not occur for me to do so either because I thought I was paying the company MONTHLY, and I didn’t expect the company to disappear within 2 months of me signing up the wax and manicure package with them! Should it be the bank’s responsibility to ENSURE that the merchant they are tying up with is not a bankrupting company running on deficits? Fine, many companies might be running a deficit. I’m wondering what are UOB’s standard procedure in accepting a company to sign up for their 0% installment plans?

2. United Overseas Bank Singapore – You have a 0% installment payment plan AGREEMENT in your website! Oh wow. The moment I signed that credit card slip, I am bounded to THIS agreement that I have never seen or read or heard of until today when I googled it. http://www.uob.com.sg/assets/pdfs/personal/cards/zeroinstaltnc.pdf

Shouldn’t you let your costumers READ the agreement before assuming we consent to the agreement? Is this seriously allowed? We don’t have to read any agreement terms before deciding on our financial options now? Then let’s do away with ALL agreements and contracts since we can do with the “let’s assume” basis.

Shouldn’t the ABS have some form of control over what banks do, or allowed to do in Singapore? Can we really sign a credit card statement that is bounded by an agreement that the consumer will not get to even read? IS THAT FAIR?

3. There have been precedence of such cases in the past: Credit card users could get protection through chargeback scheme from CNA and banks like DBS have actually terminated the installment.

According to the global operating regulations of card companies such as Visa and MasterCard, which MediaCorp obtained copies of, a process exists for consumers to reverse a credit card transaction if they do not receive goods or services that have been purchased from merchants.

Yesterday, a UOB spokesperson responded to say it assists its customers according to “a set of dispute resolution rules (put up by Visa and MasterCard) to govern credit card billing disputes between member banks on behalf of their cardmembers”.

So far, several banks, including Citibank and DBS, have already agreed to waive outstanding instalment repayments of those affected by the Wellness Village saga.

So far from what I read on the internet, DBS and POSB has allowed consumers to STOP paying for the installment on Wax In The City. Why isn’t banks like UOB being as understanding? Consumers might have made a mistake in trusting this company – Wax In The City, but is the bank going to take up the responsibility of offering 0% installment payment plans to such unreliable merchants?

4. What can CASE do in this situation?

Nothing much really.

They just advised me to proceed to Small Claims Tribunals. What CASE needs to do, and hopefully they are in the midst of doing, is to stop companies from getting away with such nonsense, and hopefully to lias with banks like UOB to seek greivance for small nobodies like ME.

I was told by someone from CASE that, technically, a company can be private limited, collect money from consumers, fail to provide services paid for, then close down. Since it’s a private limited company, the share holders and director are not personally liable for a closure of a company. That means, if the company go bankrupt while still owing people money, the people responsible for the mess gets to get away scott free?! Does that also mean it’s legal to scam people’s money? Over at OMY (Chinese report), it was reported that this company had 4000 members, and I was told by Wax In The City that the minimum amount for a package with their company is about $1000. Then Wax In The City will be getting away with $4million singapore dollars?!?!?! This does not seem fair to me at all.

5. UOB informed me that if I was unhappy about UOB’s terms and want to close my credit card account, I would be charged $100 administration fee for advancing payment on my 0% installment plan. Meaning, I have to pay UOB money to terminate the 0% installment plan, which as stated earlier, was not in any agreement that was made aware to me beforehand. Wow, UOB, seriously? Now I am stuck with your credit card until I have finished making all my payments of $1057.16 to you, otherwise you want to charge me money some more? WOW! This is a really inventive way of forcing people to stay with your credit card eh! Even if I want to faster finish paying my installment, UOB will fine you for “administrative charges”. Seriously, I apply for 0% installment you don’t charge me, I cancel you want to charge me?

I understand that UOB is also a victim in this episode, since UOB has already paid the merchant money. But there are MANY precautions that UOB could have taken to forewarn the consumers as to what they are getting themselves into!

What is the government stand on its people getting ripped off by evil merchants? Is this really fair practice? Can the government help in any way at all? Will blogging to a tune of 2000+++ unique visitors a week make a difference? Will our voices be heard or just be buried?

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1. I was also under the impression that I will be billed monthly, and not that the bank pays the company upfront. And I am also a UOB customer.

   I am sorely disappointed with UOB for being so un-understanding towards its customers. The fact that UOB has a tie-up with WITC was one of the reasons I signed. After all, UOB has several perks on offer and I figured this was just another one. The sales person made it seem so. How am I, the consumer, to know that the company that UOB has a tie-up with is a scam? Shouldn’t banks have done checks on these companies to ensure that they are reliable before tying up with them? Now that this incident has happened, I don’t feel secured anymore being a UOB customer, despite myself choosing UOB again as my preferred credit card just a few weeks ago.

   Another burning question I have is this: Why is nothing being done to help us? Many of us have filed police reports and gone down to SCT, but it seems nothing is really being done to ensure that the ones who have wronged us are being penalised. Where is the justice in that? How about our rights? Our protection against evil merchants like that?

   As a consumer who has been victimised, why should I be expected to trust another company to give me good service without betraying that trust? Isn’t this just a vicious cycle that will keep going on and on, with more and more members of the public becoming victims? How is the government helping to ensure that such incidents will be reduced? What laws and regulations can be imposed to discourage such companies like WITC from sprouting up all over Singapore, preying on unsuspecting members of the public? The public that incidentally, the law is supposed to protect?

   If someone is already looking into this matter and trying to help all of us out, I really appreciate it. I just hope that more can be done to prevent such incidents from happening again. What with Wellness Village and now WITC, I think it really shows that something is lacking during checks to ensure that the company is trustable, reliable and doing well to warrant the trust of the public.

   Comment by Mei — March 31, 2010 @ 1:21 am

    

2. I agree with you, naturally the first question that pops up when UOB vehemently denies any responsibility is “How can an established bank like UOB sign an agreement with a company that has a history of bad financial decisions?” I just got to know that the owners were the same ones that started a Naughty by Nature company that had a similarly bad rep for ripping its customers and for UOB to sign any committed agreement to pay them upfront on our behalf, what were the admin doing? Sleeping???
   Either that or I assume they believe they are absolved of any financial/loss problem as the fine print or official agreement they have with US is that we’ll have to pay them anyway, so they don’t have a thing to worry about. The plan is loss safe.
   So maybe the admin really did sleep through the whole deal.
   I, like you, am a UOB customer, and similarly, just called them up and had a scripted answer read out to me. To make matters worse, I actually only signed up a few weeks ago and have yet to use a single credit. I also have a due payment tomorrow for the installment and UOB informed me that I’ll have to pay it nonetheless, and if I have any issues, it’s between me and the merchant.
   Very responsible, UOB.
   I asked if UOB had any indication of intervening at any point on our behalf, us being their customers and all, and the reply was no. If there was, he said, they will be releasing it in public press. And as I wasn’t satisfied with the answer, I pressed further for information, and I understood that UOB higher management has issued a statement to their staff to tell customers that they have to continue paying their installments and that the issue is between us and the merchants, not them. I am terribly affronted by this.

   Comment by Xue Ling — March 31, 2010 @ 1:48 am

    

3. actually when u apply for the uob credit card those terms n condition are highlighted in small prints.. Instalment 0% : basically means you borrowed frm the bank to pay up to the merchant & the bank V nice dun charge us any interest..

   So i figured that buying a laptop w 0% instalment free thru UOB means my laptop may spoil and i have not pay my istalments finish. So we must not take too long instalments. 3mths or 6mths would be just right.

   Before signing up any package, bear in mind we r taking some risks. Even if the merchant are legitimate, they aso may faced bankruptcy or etc…

   Of course check if they are case free, if the biz owner is local and search for any bad news or complaints over their brand then decide if they are safe.

   I m also a victim of wellness village. But thank god me and my colliq only left 1 session to go. If best share the package w a close fren so that u can use the package fast thus won’t feel so heart pain if they closed down.

   Also if their packages seem too good to be true, like unlimited usage of a particular services. They may be looking at short term gain and closes down once they get many customers to sign.

   Most importantly, think like a biz owner’s perspective. If they can offer so cheap packages, they most likely will end up w losses esp w such high rentals n too little or many staffs to handle. Look for signs…. Question the manager w regards to their MGT..

   Comment by chan — March 31, 2010 @ 12:18 pm

    

4. I was a victim of Wax in City.. I just called DBS yesterday and they told me that I’ll still need to pay them in instalments because they’ve already paid the full sum to the merchant…

   Comment by Katherine — March 31, 2010 @ 5:38 pm

    

5. [...] I got scammed $1k by Wax in the City OMG [...]

   Pingback by Digital Sabrina » Blog Archive » Wax in the City SCAM! — March 31, 2010 @ 6:16 pm

    

6. Hi Xueling and prisc,

   I totally agree with you on this.

   Even though it is a true fact, and perhaps maybe with intention to print these terms and conditions in small prints either to save resources or to cause negligence, is this how UOB after-sales works? Is it right not to define T&Cs at point of purchase? I would say that those T&Cs is not tied to my purchase contract as nothing was reflected in the signing of contract. I think timing is a big issue here. UOB ought to revise this!

   Anyone with the right mind would not have guessed that your bank has gullibly paid any tom, dick or harry a full amount and cleverly push the responsibility to their loyal consumers (who gullibly believe the bank has done prior screening and their merchants are trustable) to repay whatever their merchant is supposed to deliver in instalments. What makes them different from the irresponsible WITC?
   Well Done UOB! I’m sure we are the scapegoats in this cheat case.

   Why should consumers be penalised for unfulfilled purchases which the bank has agreed in advance without consumers’ knowledge or agreement AT POINT OF PURCHASE?

   Truthfully, I am totally disappointed with this bank! From the way they transfer risks to their loyal customers, I find it hard to believe in their offers next time. If all they can do is continue to press innocent consumers for money with their SMALL PRINTS, and could not reason like all other banks did, I will probably terminate all my dealings with UOB. Perhaps all others would feel the same too.

   Comment by Ade — April 1, 2010 @ 1:48 am

    

7. I’m one of the victims too. From what I read, DBS and POSB are willing to stop the instalment payment under certain circumstances, but why not UOB? Why the double standard?

   Best course of action right now is for the authority (such as CASE) to go after the owner, seize any of their remaining properties, freeze any of their bank accounts and hopefully distribute the remaining ceased assets to the victims (or the banks who are willing to cease the instalment payments).

   These guys really ought to be taught a lesson rather than getting away scot-free, very soon they will form another company and do more harm.

   Comment by Lin — April 1, 2010 @ 4:58 pm

    

8. Pris,

   It is absolutely untrue that a director of a company is not liable for the closure of a company. I know that PERSONALLY, as I was hauled before a magistrate once for monies owed to Singapore Power and SingTel money after I closed down my company.

   Take a look at this article here. Then use the search feature on your browser and search for “Under what circumstances would a director be responsible for a company’s liabilities?”

   Take a look at (c). It states:

   where the officer is guilty of fraudulent trading that is, being party to the carrying on of business by a company to defraud creditors or for a fraudulent purpose (see section 340 of the Companies Act); and

   So that is why CASE is asking you to pay $5 and do a search for the company information at ACRA. You can do that online if you haven’t already. (Pay with another credit card since you probably hates UOB now. )

   After this, find out from the Small Claims Tribunal (SCT) – I think you CAN email or call them for queries – and find out from them what is going to happen if you claim trial and the directors of Wax in the City failed to turn up.

   Now by pointing this out, I am NOT giving you hope that there’s chance you will get your money back. But I believe that unless these people have left the country, there is still a chance the long arm of the law can get to them – depending on just how much power was given by Parliament to the SCT when it was created.

   Comment by xizor2000 — April 3, 2010 @ 12:45 am

    

9. [...] – TOC: Singapore Police Force should build strong community partnerships in cyberspace – Deadpris: Banking Ethics in Singapore: UOB’s 0% Installment Plans Agreement (huh what agreement??) [Thanks Priscilla] – Yours Truly Singapore: From true grit comes myths – Digital Terrorist: Jack [...]

   Pingback by The Singapore Daily » Blog Archive » Daily SG: 3 Apr 2010 — April 3, 2010 @ 11:18 am

    

10. I am also a victim of this. HAd also signed the O% installment plan with UOB and I always thought that paying mthly installments is being billed monthly. During the time when I sign the package, the Marketing guy also said that the company will not closed down, with their 3 outlets, etc. Although my package amount is not as much as some others, the thought of having to pay even when I knew that the company had ceased is really frustrating. Am so disappointed with UOB.

    Comment by Disappointing — April 3, 2010 @ 11:40 pm

     

11. [...] – TOC: Singapore Police Force should build strong community partnerships in cyberspace – Deadpris: Banking Ethics in Singapore: UOB’s 0% Installment Plans Agreement (huh what agreement??) [Thanks Priscilla] – Yours Truly Singapore: From true grit comes myths – Digital Terrorist: Jack [...]

    Pingback by The Singapore Daily » Blog Archive » Weekly Roundup: Week 14 — April 4, 2010 @ 1:52 am

     

12. I’ve tried calling in DBS last week and good news is that they’ve allowed to waive off my future instalments, I’m so relieved… It’s already very terrible to get cheated by WITC and if I still need to fulfil my instalments, think that will make me feel more lousy… I’m not sure about UOB but if you are paying your WITC instalments via DBS, do tried to call them to waive off your instalments (though the customer svc officer did mention to me it’s a case-by-case basis)…

    It’s a burden off my mind now, think I’ll never ever sign up for such package in future, I’ll just go for “pay as per service” from now on…

    Comment by Katherine — April 7, 2010 @ 5:09 pm

     

13. we need to highlight this to the prime minister – we should all write to him highlighting this – since MAS and the banks are not doing their bit to make this safer for customers.

    Regarding IPP, I did ask UOB why didn’t they make all merchants get their customers to also sign a form at the same time when we sign the IPP to acknowledge that we know (we did not) that the bank is paying the merchant in full immedialtey, and that even if the merchant were to close shop tomorrow, we are still bounded to pay the bank in full. These merchants know how to mislead us into thinking we are paying them by instalments – and the banks are washing their hands away.

    Comment by mango — April 8, 2010 @ 5:12 pm

     

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    Comment by Dennis — April 26, 2010 @ 2:07 pm

     

18. Hi All, I am gathering some facts to write to Forum regarding UOB’s attitude in handling the Wellness Village closure. Can anyone advised if other banks have wavied the outstanding payment? I read Citibank has done so. Thanks.

    Comment by Serena — May 3, 2010 @ 11:32 pm

     

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