Unfortunately, a few garden room companies have ceased trading this year, and customers lose their deposit payment. This is a distressing situation, but there are ways you can protect yourself from such a loss.
Backed by insurance
Several companies, including Swift Garden Rooms, offer a deposit protection insurance policy. These policies are provided by companies such as IWA who vet the companies they work with and are FCA regulated and covered by the Financial Services Compensation Scheme.
With deposit cover insurance protection, your deposit payments are covered should the company you have chosen to build your garden room ceases trading. In the event of this, they will either refund your deposit or organise another company to complete the project.
Deposits of up to 25% of the project cost are covered. This deposit payment is made to secure your place in the order book and to pay for materials for your project.
Pay on a credit card
Not all companies offer insurance backed deposit policies. In these instances, it is wise to make your deposit payment on a credit card as you will then be covered by Section 75 of the Consumer Credit Act. This act protects you on purchases between £100 and £30,000.
Interestingly, you don't have to make the whole project payment on a credit card. If you make the deposit payment on your credit card and then the balancing payment by other means, you should still be covered by the Section 75 rules.
Better to be safe than sorry
We don't often hear about garden room companies going out of business, but it does happen. It is wise to take steps to protect your deposit while you wait for your garden room to become a reality.
If you want the peace of mind of working with an insurance backed supplier, have a word with the Swift Garden Rooms team on 01625 875 588 or send them an email. Their website is www.swiftorg.co.uk
