Dear Sir,
I would like to raise to your attention that many people who had signed up for spa packages with True Spa and Subtle Senses are still paying for credit card installments even after these 2 spas have stop operations.
http://www.facebook.com/home.php?sk=group_170620749615018&ap=1#!/home.php?sk=group_170620749615018&view=doc&id=171669619510131
Is it possible if you could explain to the consumers how this can be possible?
Someone asked why can’t consumers just pay banks the factoring fee they earned and then the credit cards go after the spas for the rest?
The Government has chosen to remain silent about all these or take a watch and see stance. I feel there is a lot of injustice in Singapore.
The victims have started a Facebook group which is now about 500 people. Even though there 18000 customers, many have been fearful of defamation charges or trouble if they make noise. I heard someone who sued True Spa last year was countersued for defamation by True Spa.
Where is the justice in Singapore? Do you know how we can ask the government to take action to swiftly freeze the voluntary liquidation of Subtle Senses? I think instead of using customers’ advance payments to operate the spa businesses, True Spa is now an empty shell and we are not sure where all the millions of dollars of customers’ monies is now.
Hope the government can do something quickly. Otherwise the monies will just disappear after being transferred here and there.
Thank you for your kind attention.
Ally
I hope this is a lesson learnt by ppl who wants discounts, interest free installment without knowing the risk they are taking in commercial dealing. You might pay slightly higher for per visit service but you are sure to get the service for the money you pay.
ReplyDeleteIt is differnt from buying physical items by installment where provided you get it delivered. Only option is go to the court to get justice and do not make the same mistake again. I feel sorry for those who lost their money but this is life...not just in Singapore.
This is my view and observations.
ReplyDeleteFirstly, my view is it is very difficult to operate a viable business in SG these days, without exploiting a loop-hole yet to be discovered by competitors in the same industry. Other means would include by dishonesty and government protection eg. monopolies in the case of SGX and SPH, and oligarchy in the case of SBS, SMRT, PUB, DBS, SingTel, StarHub & M1. The business environment is harsh due to increased competition and a weak economy & high domestic unemployment (unemployment statistics does not include those who give up job search & the under-employed eg. part-timers, commission earners).
In SG, the situation is further aggravated by additional 7% GST, high rental & property expenses, and consumers having little disposable income left after paying down huge housing mortgages and mortgage insurance.
Most businesses get by with less, cost-cutting is their favorite pastime. Others resort to creative accounting and cheating their customers, suppliers or partners. Easy money is a lure, and it would take a long time before the victims discover their loss. A slow and subtle pain, the perpetrators would have ample time to cover their tracks or run for the door, or airport if they are foreigners.
My advice to all consumers - COD (Cash on Delivery) is good, no pun intended. Never be sweet talked into paying a tidy sum for future delivery of goods & services. Always pay as late as possible, and after proper inspection of your purchase.
I believe more scams will surface, especially in a weak economy with few value-added, meaningful jobs. Ever heard of Oilpods? Is Goldpods coming? Maybe.
i think steven above is over generalising when he said people lost money because they are looking for cheap deals.
ReplyDeleteSad, isn't it? We complain abt Big Brother and the Nanny State, yet when something happens, we want the Govt to solve the problem for us.
ReplyDeleteTrue Spa is a fully private company, and the banks are also listed companies. This is a totally private sector transaction, within the framework of the SPGA.
So why do you expect the govt to do something?
We are in many ways the product of the environment and system our government have created for us.
ReplyDeleteRead the theories by Bronfenbrenner on the Bioecological system.
Anyway, do not detract. The comment that customers are at fault because they were tempted to go for cheap deals is similar to character assassination.
Why pass such a comment?
There is freedom to do business here. Using the corporate veil to protect oneself is no justification for fraud.
A business entity - Pte Ltd company - is not a vehicle to be used to steal, kill and destroy.
Who said anything abt character assassination? Who said anything abt steal, kill or destroy?
ReplyDeleteIf a company collects payments in advance-- which is perfectly legal-- and then goes bust, why do you even expect govt intervention?
Oops..so chiem English "Character assassination", sorry I dun understand so meaning that this never cross my mind so Ally Lee please dun get upset.
ReplyDeleteLee is right, as long as business is legitimate, it is mutual between buyes and seller whether is service or goods. Govt can only setup legal system and guide and consumer rights for mediation like CASE. If anyone think and have proof to be a case of Fruad, go for the Legal way to get justice. It is also good to have it public so that consumer can learn and beware in the future.
The owner of True Spa is the son of Singapore former acting President and first Chief Justice - Wee Chong Jin. Does not that kind of public office make him connected with the elites in Singapore?
ReplyDeleteAlso, isnt education in Singapore subsidised heavily using tax payers' monies?
So, this person who was educated in Singapore... dont you think ethically and professionally, he owes Singaporean consumers something? At least be ethical and refund us the monies?
Seems to me Steven and Lee are probably spa owners searching for the latest update on their industry's bad publicity.
ReplyDeleteSteven said this is a good lesson for people looking for good deals without knowing the associated risks. He is right in a certain way, but let's face it; who you know is not trying to get a good deal when shopping? Always remember when the deal is too juicy, it probably is not true : there is a catch hidden somewhere or it is a scam/fraud.
This episode gives an impression SG's educational system is a failure as there is lack of sympathy for those affected, which is what a system based on meritocracy produces; a strong inclination towards individualism & selfishness.
My opinion is that the credit card companies are partly to be blamed. They know how to provide an interest-free installment scheme but did not think of customer protection against non-performance of contract. Are our bankers so dumb? Credit card purchases used to be insured against failure of delivery in the early days of credit card issuance. When was this clause removed?
The CAD (Commercial Affairs Department) should be called in to investigate. So should the MAS. Questions need to be answered. Where did all the money went? How much was involved? Was an organized syndicate behind the scene? Why did spas close down one after another? Is there a noticeable trend? An industry-wide fraud in the works? Was high pressure selling techniques employed? Who are the beneficiaries? Were foreigners involved? A huge amount of public money is involved here, I believe, so a thorough scrutiny is not asking too much.
thank you very much redstar. very good comments.
ReplyDeletei am sad that the government is allowing the common people to be lambs for the sake of businesses.
in facebook group, there are about 600 victims who have gathered so far.. and we had submitted a petition to the government, but they are still keeping quiet.