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September 23, 2009

Small Victory for the Little Guy

Filed under: Developers, Legal Issues

Some lighter stuff while most of us are still in the holiday mood (actually not us, we’re back to work today).

This was taken from the Star some weeks back, nice to see justice for the little guys like us.

Developer told to refund booking fees

JOHOR BARU: The consumer claims tribunal has directed a financially-troubled housing developer to return the booking deposits of house buyers in instalments.

Tribunal president Rahazlan Affandi Abdul Rahim made the ruling after a representative from Kong Sun Enterprise Sdn Bhd said the company was not doing well financially.

“We can only afford to pay the reimbursement of RM4,750 in instalments as we are overloaded with repayments,” said the company representative, who declined to be named.

At least eight cases have been filed against the developer at the tribunal here in recent weeks.

Most of the victims, who paid the deposits last year, wanted the booking fee refunded after their loans were not approved.

The latest case was yesterday when a sales consultant brought the developer to the tribunal to get her refund

Lee Kuek Chen, 27, alleged that she paid a RM5,000 booking fee for a low cost house in Mount Austin in October last year.

“Since then, I have tried calling them many times to find out the status of my purchase but they kept telling me to wait. Then in May, I received a letter from the developer stating that my loan was not approved.”

“They promised to refund the money but I waited for another four months before taking them to the tribunal,” she said.

Rahazlan said the tribunal had taken into consideration the company’s financial state and its willingness to repay the money.

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