Singapore consumers reported nearly S$6.7 million in prepayment losses in just the first nine months of 2026, according to the Consumers Association of Singapore.
That is about 147% higher than the S$2.71 million reported for the whole of 2025.
For those wondering what “prepayment losses” means, it refers to money consumers paid upfront for goods or services they later could not use, often because the business closed or could no longer fulfil the contract.
Or, in very Singaporean terms, you bought a package thinking you were being financially wise, then the shop disappeared before you could finish using it.
Recent Fitness Closures Made Up a Big Part of the Losses
CASE said on Monday, 5 October, that consumers reported nearly S$6.7 million in such losses from 1 January to 30 September 2026.
A major chunk of the recent losses came from fitness-related closures.
Between 10 September and 30 September, CASE received 1,610 complaints involving close to S$3.82 million in reported prepayment losses after several fitness businesses closed.
Most of these complaints were linked to True Fitness and True Yoga. CASE received 1,518 complaints involving about S$3.78 million in reported losses relating to their closures.
Another 92 complaints, involving about S$32,800 in reported losses, were linked to Yoga Inc, which closed its remaining outlets in September.
CASE said it has helped affected consumers lodge claims and proofs of debt with the relevant liquidators.
However, the problem is that when a business enters liquidation, ordinary customers are generally treated as unsecured creditors. In simple terms, this means they usually stand behind secured creditors and may not get back the full amount they paid, or any amount at all, depending on what is left.
CASE Wants Mandatory Safeguards
CASE is now calling for mandatory safeguards in sectors where businesses collect substantial or long-term prepayments from consumers.
It proposed three broad measures.
First, CASE wants mandatory cooling-off periods for high-value prepaid packages. This would give consumers time to reconsider big upfront purchases and cancel without penalty.
Second, it wants CaseTrust accreditation to be made compulsory for businesses in sectors involving substantial or long-term prepayments, including beauty and fitness.
CaseTrust accreditation would require safeguards such as prepayment protection, transparent pricing, clear contract terms, proper disclosure and reasonable refund arrangements.
Third, CASE called for potential cases of wrongful trading to be properly investigated, with enforcement action taken where the legal requirements are met. This could include situations where a business collects substantial prepayments shortly before liquidation.
CASE also stressed that its proposals do not amount to an allegation of wrongdoing against any specific business or person.
How Other Places Protect Prepaid Customers
CASE pointed to other jurisdictions that have introduced or proposed protections for consumers who pay upfront.
For example, Taiwan requires fitness centres to protect at least 50% of prepaid fees collected through mechanisms such as trust accounts or performance guarantees.
New York requires health clubs to provide financial security, such as a bond, letter of credit or certificate of deposit, to protect consumers who prepay for memberships. Health club contracts there are also capped at 36 months, and consumers have a cancellation window after signing.
Hong Kong has proposed measures for prepaid beauty and fitness contracts, including a cooling-off period and limits on contract duration.
CASE president Melvin Yong said the recent fitness closures and sharp rise in reported prepayment losses show the limits of relying only on voluntary measures.
He said safeguards should be introduced promptly to protect consumers’ money, set clearer standards for businesses and give consumers more confidence when buying prepaid packages.
