In view of rising building material costs, it is becoming increasingly difficult for craft businesses to make advance payments and advance payments are increasingly being required. But there are risks associated with this for consumers. And not just there.
Advance payment for craft work
The law actually requires craftsmen to make advance payments. Down payments or advance payment are not considered, but rather advance payments as soon as partial services have been provided. In practice, however, fewer and fewer craft businesses are willing to take on orders without advance payments. To ensure that customers do not take on too much risk, they should negotiate individual contracts. How much are you as a customer willing to pay and to what extent can the craft business accommodate you? Consumers should avoid paying in advance, i.e. the entire amount in advance.
Bankruptcy instead of solar system
Axel Hilpold should actually have a solar system installed on his roof by now. He paid 12,400 euros, 50 percent of the total costs, in advance. But then he waited in vain for delivery and installation. Finally, it turns out that the company in charge has now filed for bankruptcy. If customers make a deposit, they bear the risk of insolvency and, in case of doubt, lose the money.
Advance payment when purchasing furniture
When buying furniture, a deposit is often required, but there is no legal obligation to make such a payment. However, the law generally requires payment upon delivery.
No advance payment in the terms and conditions
It is important to know that the Federal Court of Justice does not allow advance payment clauses in the general terms and conditions (GTC) or form contracts. Because customers have to retain leverage and are allowed to withhold at least 20 percent of the price.
Advance payment when traveling
Even those who want to go on vacation often have to pay for a lot in advance. For package tours: 20 percent deposit is permitted. If the tour operator proves that they have made a corresponding amount of advance payments, up to 40 percent of the travel price can be requested in advance. In addition, tour operators may demand the final payment of the entire travel price 30 days before the start of the trip. At the same time, the risk for customers with package tours is lower than with individual trips, as they are protected against the organizer's insolvency by a security certificate. Individual travelers, on the other hand, still have to pay for flights in advance. However, the consumer advice center is calling for this to change.
Source:
Market check SWR / Authors: Angelika Scheffler-Ronen, Annika Erbach, Martin Küstermann
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