Prepayment protection

Explain Like I’m Five

With a prepaid package, the business has your money before you have used all the sessions. If it closes, you could lose what remains unused. Protection provides a way to claim covered unused payments under the arrangement’s terms.

How It Works

Under relevant CaseTrust schemes, covered advance payments come with proof of protection identifying the consumer and protected sum. If the accredited business closes, that protection supports a claim for the unused covered portion.

Where You’ll Run Into It

When considering packages at Singapore fitness centres or spas, and in news about customers losing advance payments after businesses close.

The CASE page explains the consumer organisation behind CaseTrust. A package quote may also mention GST; the protection documents identify the sum covered by the arrangement.

Example

“The receipt shows I paid. Where is the proof of prepayment protection?”

A customer distinguishes the payment record from the document showing which money is protected.

The Part People Get Wrong

Paying in advance does not automatically create protection. CaseTrust coverage varies by scheme and payment type, with exclusions. A prepaid package or a refund policy alone is not proof that the money is protected against business closure.