I lost £13k to a scam builder – this is what I wish I'd done differently when finding a tradesperson for my side extension
Plus, how I got my money back
I moved into my two-bedroom Victorian end-of-terrace home in May 2021 and was beyond excited after a somewhat painful eight-month buying process. The property had been rented out for over a decade, and despite needing a good dose of TLC, it had oodles of potential.
My one bugbear, however, was the kitchen. Like many Victorian terraces, it had a narrow U-shaped kitchen at the back with a side-return entrance from the garden. In addition to being cramped, it hadn’t been looked after by the previous tenants. The cabinets were hickledy-pickeldy, there were gaps in the worktops, and, quite possibly worse of all, it was painted an overpowering shade of sky blue.
Here’s what I learned…
The search for a builder begins
I started my search by posting the job on MyBuilder. I’d used the site before for smaller jobs and had success finding reliable tradespeople. Nine companies responded to my post. I reviewed each profile carefully and invited the three with the best reviews to come to my home to provide a quote.
Stephanie getting the keys to her new home
Following their visits, I eagerly awaited the figures. My favourite builder had arrived with a surveyor and, despite having some ideas above my budget, was friendly and assertive. His company, Mila & Me, provided a professional quote on headed paper with a comprehensive breakdown of materials, timescales and details of their insurance as requested. It was a mid-range price, too. Not the most expensive, but not the cheapest either.
I then did my further due diligence and checked the company’s reviews on accredited sites such as Which? and Checkatrade. Again, top reviews, with images, going back a decade or so. This gave me confidence that it was a well-established company with a history of quality builds. Green flags all round!
The kitchen due to be renovated
Handing over the money
Once I had decided to appoint Mila & Me, a polite gentleman called me to arrange the payment of the deposit. My first mistake! I thought this was a normal part of hiring a tradesperson, as they needed to guarantee your commitment to the project and pay for some materials up front. He requested a third of the full amount, which equated to around £13,000, and recommended I pay some of it by credit card, in addition to debit card. I confidently transferred the cash and anticipated the work to begin at the end of the summer of 2022.
Building suspicions
On the day the work was scheduled to begin, I waited eagerly at home. Plans had been drawn up and permissions were in place. Nobody turned up. It took a while to get hold of the office, but eventually somebody answered the phone, this time a woman, who apologised that the previous job had overrun and I should have been contacted. I’m naturally more inclined to trust women, and therefore, my mind was put at ease.
However, the next promised date came and went with no visit. I kept calling, and eventually the phone line went dead. Panic set in as I checked Google Reviews once more. My stomach sank. It showed reams and reams of new reviews stating that the company had not turned up to start their jobs either. Some had even been left half-started, with walls knocked down and foundations half-dug.
The proposed plans for the extension
Taking action
Firstly, I contacted Action Fraud. I think I cried at them. They gave me a police reference number and told me to contact my bank. Then I waited helplessly, knowing that if this money was lost, my dream extension was lost with it.
A few weeks down the line, I found a Facebook thread from others who had been potentially scammed by Mila & Me. I was subsequently added to a WhatsApp group, and the numbers were outstanding. More than 100 members across three counties, including Essex, Kent and Hertfordshire, each one a victim of an elaborate plot to ‘hijack’ a reputable company and steal as much money in deposits as possible. They’d strung everybody along for as long as they could, then chosen a date to pull the plug. Offices had been left empty, and phones were off the hook.
We collated a spreadsheet of information for the police, which revealed Mila & Me had stolen more than a million pounds in total. However, frustratingly, the perpetrators were never brought to justice.
The back of the house before the extension
A victimless crime?
After several months, numerous conversations with my bank and a lot of tears later, I was reimbursed by NatWest under Section 75 protection. This states that when you pay for a purchase between £100 and £30,00 on a credit card, you are legally protected if the retailer or service provider fails to deliver. I don’t think I have ever been so relieved.
The fraudsters clearly advised me, knowing I would likely be reimbursed by my bank, and therefore their trickery was, to them, a victimless crime. However, I would argue the financial cost to the economy, not to mention the emotional impact on the victims, is significant.
After a breather of several months, I began my search for another builder, but my guard was up. My money was only reimbursed by the bank because I had done my ‘due diligence’ on researching the company. However, there were definite red flags that I ignored.
Here are three things that I would do differently next time…
What I'd do differently
1. Watch out for upselling
Although the builder who visited my home was polite and professional, he was heavy on upselling. He had grand ideas on how I could have swapped my kitchen and dining room around and added a downstairs toilet. Now I see that he was hoping to inspire me to commit to more work and, therefore, hand over a bigger deposit.
2. Paying a deposit
This is a tricky one. It’s best to avoid paying a deposit at all, but for big projects, traders often require one before work starts. Citizens Advice recommends offering to buy the materials yourself instead, so you own them if something goes wrong.
Alternatively, it advises paying no more than 25% of the total price, never paying cash, and always getting a receipt. I would certainly never pay as much as a third of the total cost upfront again.
3. Check Companies House
Companies House is a free Government website that allows you to find information on all registered companies in the UK. When I researched Mila & Me before appointing them, I could see that it had been taken over by new directors the previous year.
While this needn’t necessarily be a warning sign, it might be worth investigating further, including asking to see examples of building work since the new team took over.
Here are three things I’m glad I did and would do again in future…
What I'd do the same
1. Check multiple review sites
Don’t just rely on word of mouth, a business card or the tradesperson’s website. I checked multiple review sites. Social media is another great place to do some detective work.
Unfortunately, the people I hired had taken advantage of an existing company’s reputation and relied on historic positive feedback, but I imagine this is extremely rare.
2. Get multiple quotes
Checkatrade advises getting multiple, itemised quotes – including VAT – from several tradespeople to get an idea of fair prices in your region. I followed these words of wisdom by getting three quotes and choosing the company with the median price. As a rule, if it’s so cheap it seems too good to be true, it probably is.
It’s also important to know the difference between a quote and an estimate. An estimate is not a fixed price, whereas a quote should include everything unless clearly stated as an extra, such as radiators or plug sockets.
3. Pay a small amount by credit card
The scammers advised me to pay a small amount of my deposit by credit card, which, although in hindsight indicates their intention to do a runner, I’m very glad I did. The Section 75 law makes the card provider jointly liable for goods/services, so it’s a savvy idea to pay even a few pounds on a credit card for any large purchase. While it’s not guaranteed, it’s an encouraging safety net.
Eventually, I found a reliable builder who turned by side extension and new kitchen into a reality
Lessons learned
I realise I was extremely unlucky. You can follow all the advice, do your research and still come unstuck. Despite being reassured by Action Fraud and my bank that I had done my best to avoid such a situation, I still felt embarrassed and perturbed by my experience.
There are lots of great tradespeople out there, but don’t be afraid to ask awkward questions, probe into their background, and, if something feels off, listen to your gut. Lastly, if something goes wrong, always report it to the relevant authorities and be persistent with your legal rights.
Mila & Me was dissolved as a company in March 2024 according to Companies House, and is no longer operating.
