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Case warns more firms may go bust in tough economy, leaving customers who make prepayments stranded

The Hougang branch of the abruptly closed child enrichment chain Genius League, photographed on  on May 9, 2023. Parents were left with financial losses for prepaid lessons that were not delivered.
The Hougang branch of the abruptly closed child enrichment chain Genius League, photographed on on May 9, 2023. Parents were left with financial losses for prepaid lessons that were not delivered.
The Consumers Association of Singapore is warning of rising losses by consumers when they make advance payments to firms that then go bust
Case is calling for mandated prepayment protection, such as the use of escrow services where customers' money is held by a third party until the contract is fulfilled
Some firms here questioned whether escrow services are feasible in their fields, citing the high legal costs, for example
Lawyers highlighted the onerous procedures of implementing escrow services
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