Consumer Remedies for “Service-Not-Rendered” Scams in the Philippines

This guide explains your options when you paid for a service (e.g., home repair, event planning, online freelancing, travel booking) that was never delivered or was grossly incomplete. It’s written for consumers in the Philippines and covers administrative, civil, criminal, and practical remedies. It is general information, not legal advice.

1) What counts as a “service-not-rendered” scam?

You paid (deposit, down payment, full price) and the provider never did the job, ghosted you, or delivered something materially different from what was promised.
Common contexts: online bookings, freelance work, construction/renovation, education/tutorials, travel packages, courier/forwarding, repairs, photography/video, events, and digital services (web design, ads management, SEO).

Key idea: this is typically breach of contract (civil), may be unfair or deceptive trade practice (administrative), and can rise to estafa (criminal) if there was fraud or abuse of confidence.

2) Legal pillars you can rely on

Civil Code of the Philippines
- Art. 1191 (Resolution/Rescission): If one party fails to comply with a reciprocal obligation, the other may rescind (cancel) or demand specific performance, with damages either way.
- Arts. 1170, 2200–2209: Damages for fraud (dolo), delay (mora), and negligence; actual/compensatory, moral, exemplary, attorney’s fees, and interest.
- Art. 22 (Unjust Enrichment): No one should unjustly enrich themselves at another’s expense—useful when money was taken but nothing was done.
Consumer Act of the Philippines (R.A. 7394)
- Prohibits deceptive, unfair, and unconscionable sales acts or practices—applies to services too.
- DTI may mediate/adjudicate complaints, order refunds/restitution, and impose administrative fines/cease-and-desist.
Revised Penal Code – Estafa (Art. 315)
- Estafa by abuse of confidence (e.g., taking a deposit “in trust” for a specific purpose and misappropriating it) or by false pretenses (lying about qualifications/capacity to deliver to induce payment). Penalties scale with the amount defrauded (as amended by R.A. 10951).
Cybercrime Prevention Act (R.A. 10175)
- If fraud is done through ICT (social media, marketplaces, messaging apps, websites), penalties may be increased; law-enforcement may treat it as cyber-estafa.
E-Commerce Act (R.A. 8792) & Rules on Electronic Evidence
- Electronic documents, messages, screenshots, and logs are admissible if properly authenticated; e-signatures and click-wrap agreements can be valid.
Financial Consumer Protection Act (R.A. 11765)
- Banks, e-wallets, and lenders must have complaint handling; you can escalate unresolved payment disputes to BSP/SEC/IC depending on the entity.
Data Privacy Act (R.A. 10173)
- If your personal data was misused during the scam (identity theft, doxxing), you may complain to NPC separately.

3) Remedies at a glance

Track	Goal	Where to file	What you can get
Administrative (DTI/sector regulator)	Fast consumer relief; stop deceptive practices	DTI (most services/online sellers) or sector regulators (e.g., NTC for telcos, CAB for airlines, MARINA for sea travel, Insurance Commission for insurers, BSP/SEC/IC for financial services, DHSUD/HSAC for real estate developers)	Refund/restitution, fines, cease-and-desist, compliance orders
Civil (breach of contract)	Get your money back, interest, damages; or specific performance	Small Claims (for claims up to the current SC small-claims limit) or Regular Courts	Refund, damages (actual, moral, exemplary), interest, attorney’s fees; specific performance or rescission
Criminal (estafa)	Punish fraud; possibly recover through civil liability within the criminal case	City/Provincial Prosecutor (or law-enforcement first)	Criminal penalties; civil liability ordered in the criminal case
Payments/chargebacks	Reverse/recall the payment	Your bank/e-wallet/card issuer; then BSP/SEC/IC if unresolved	Chargeback/reversal/refund per network rules

Note: The small-claims monetary ceiling changes from time to time. If your claim is near the edge, check the latest Supreme Court small-claims limit with your local court clerk.

4) The practical, step-by-step playbook

Freeze and document
- Stop further payments. Collect receipts, deposit slips, transaction IDs, chat/email threads, screenshots of posts/ads, copies of the service agreement/quote, IDs of the provider, and any proof of promises/deliverables.
- Export chats and emails to PDF. Keep original files (with metadata) for authenticity.
Send a calibrated demand letter (give a short deadline)
- State what was promised, what happened, and what you want (refund/finish work by a date).
- Give a reasonable deadline (e.g., 5–10 business days).
- Send via trackable means (registered mail, courier with POD, and via email/messenger). Keep proof of receipt (or refusal).
Try the fastest cash-back path
- Card: file a chargeback with your bank (non-delivery of services).
- E-wallet/bank transfer: open a dispute ticket with the provider; request recall/chargeback if available.
- Marketplace/platform: trigger the buyer protection flow.
- If unresolved, escalate to BSP/SEC/IC under the FCP Act depending on the provider’s regulator.
File an administrative consumer complaint
- DTI for most service vendors and online sellers; use their complaint/mediation channels.
- Use sector regulators if the service is regulated (airline, shipping, telco, utilities, insurance, real estate pre-selling, etc.).
- Relief can include refund/restitution and administrative penalties against the business.
Barangay conciliation (if required)
- If both parties are natural persons who live/work in the same city/municipality, many money claims require barangay conciliation before court. There are exceptions (e.g., urgent injunctive relief, parties live in different cities, the party is a corporation, etc.). When in doubt, ask the barangay or a lawyer.
Sue for breach (civil)
- If your claim is within the small-claims limit, you can file a Small Claims case in the MTC—no lawyers required, standardized forms, faster timelines.
- If above the limit or you want additional relief (e.g., injunction), file a regular civil action (specific performance or rescission with damages) in the proper court/venue.
Consider a criminal complaint (estafa)
- Use this when there are lies or schemes from the outset (fake qualifications, bogus permits, fabricated bookings, “deposit held in trust” then vanished).
- File a complaint-affidavit with the Prosecutor (often via police/NBI for investigation first). Attach your evidence.
- Remember: criminal cases punish, but restitution is pursued as civil liability; a conviction isn’t guaranteed—file civil/administrative in parallel if you need faster monetary relief.
Enforcement
- Winning a case is different from collecting. Courts can issue writs of execution, garnishment, or levy of assets. For administrative orders, agencies can enforce compliance and repeat violations can trigger stiffer sanctions.

5) Evidence: make electronic proof court-ready

Authenticate: Keep original files; export full chat/email threads; capture URLs, timestamps, and transaction IDs.
Affidavit of the custodian (you) can identify the device/email/account used, how screenshots/exports were made, and that they are complete and unaltered.
Link the money: bank/e-wallet statements, QR or reference numbers, deposit slips.
Corroborate: ads, public posts, other victims’ accounts (if available), photos/videos of non-performance.
Preserve devices until cases finish; avoid editing images that contain key metadata.

6) Civil remedies in detail

Specific Performance: Court compels the provider to finish the job as promised (useful when the service is unique or time-sensitive).
Rescission/Resolution (Art. 1191): Cancel the contract for substantial breach and restore parties to their pre-contract positions; add damages.
Damages:
- Actual/compensatory (what you lost + necessary expenses).
- Moral (for anxiety, humiliation) when there’s fraud or bad faith.
- Exemplary (to deter egregious conduct).
- Attorney’s fees and costs in proper cases.
- Legal interest accrues on sums due (courts apply prevailing jurisprudential rate from the time of demand or filing, depending on the circumstance).
Venue/Jurisdiction: Generally where you or the defendant resides or where the cause of action arose; small claims go to the MTC; larger claims to the RTC.

7) Criminal remedies (estafa) in detail

Estafa by abuse of confidence: Money taken in trust/commission/administration then misappropriated.
Estafa by deceit/false pretenses: Provider lied about material facts (licenses, capacity, bookings) to induce payment.
Elements: (1) Fraud or abuse of confidence; (2) Damage to the victim; (3) Causal link.
ICT-enabled scams may carry higher penalties under the cybercrime law.
Where to go: PNP or NBI (often the Anti-Cybercrime Group if online), then to the Prosecutor for inquest or preliminary investigation.
Timeliness: Criminal actions prescribe after certain periods depending on the penalty; don’t delay reporting.

8) Administrative path (DTI & regulators)

DTI (Consumer Protection): File a sworn complaint with your evidence. Many cases are mediated; unresolvable cases can be adjudicated by Consumer Arbitration Officers who may order refunds/restitution and impose fines.
Sector regulators (when applicable):
- Airlines – Civil Aeronautics Board.
- Sea travel – MARINA.
- Telecoms – NTC.
- Insurance/pre-need – Insurance Commission.
- Banks/e-wallets/lenders – BSP/SEC/IC (under the FCP Act).
- Real estate pre-selling/permits – DHSUD / HSAC.
- Utilities – respective regulatory commissions.
Choose the forum that actually covers the business you dealt with; you can pursue administrative and civil remedies in parallel.

9) Payment reversals & chargebacks

Credit/Debit Cards: Dispute the charge for non-delivery. Provide contract + proof of non-performance + demand letter. Networks have strict time windows—file promptly.
E-wallets & bank transfers: Use the in-app dispute center with transaction references. If unresolved, escalate to the proper regulator under the FCP Act.
Marketplace escrow: If you paid via a platform with buyer protection, open a case before the release window closes.

10) Barangay conciliation basics

Often required before filing certain civil actions when parties are natural persons in the same city/municipality.
Exemptions include: parties reside in different cities/municipalities, one party is a juridical person (e.g., corporation), need for urgent injunctive relief, among others.
The barangay issues a Certificate to File Action if conciliation fails or an exception applies.

11) Cross-border & platform scenarios

If the provider is overseas or identity is unclear:
- Prioritize chargeback/payment reversal and the platform’s dispute system.
- File a report with the NBI/PNP Anti-Cybercrime units to aid takedown and evidence preservation.
- Suing abroad may be impractical; focus on local recovery of funds and stopping further harm.

12) Red flags (so you can avoid this next time)

Demands full payment upfront with no contract, no official receipts, no business registration.
Unverifiable licenses/permits, borrowed photos/portfolios, or claims that feel “too good to be true.”
Refusal to sign basic milestones/timelines or to accept escrow.
Move-to-chat tactics that bypass marketplace protections.

13) Quick demand-letter template (fill-in-the-blanks)

Subject: Demand for Refund / Completion of Services To: [Name/Business], [Address/Email]

I engaged you on [date] to provide [describe service] for ₱[amount], under our [contract/quotation/chat agreement]. I paid ₱[amount] on [date] via [mode] (Ref. No. [ID]).

Despite repeated follow-ups, you [failed to start/ceased work/missed agreed completion date]. This is a substantial breach of our agreement and a deceptive/unfair practice under the Consumer Act.

I hereby demand [full refund of ₱___] (or completion by [date]), plus applicable interest and damages if unresolved.

If I do not receive confirmation within [X] days from receipt, I will pursue DTI/Regulatory complaint, Small Claims/civil action, and criminal remedies as warranted, at your cost.

Sincerely, [Your Name] [Address / Contact] Attachments: Proof of payment, contract, communications

14) FAQs

Can I pursue DTI, civil, and criminal routes at the same time? Yes, administrative and civil can run in parallel. A criminal case can proceed as well if there’s fraud; the civil claim can be included in the criminal case or filed separately.
The provider says “no refunds.” “No refund” cannot defeat your rights when there’s non-delivery or substantial breach.
What if they did part of the work? You may seek partial refund or damages; courts look at materiality of the breach.
Prescription/Deadlines? Civil and criminal actions have time limits. Because these vary (and change over time), act quickly and consult a professional if close to any deadline.

15) Handy checklist before you file anything

Contract/quotation/scope of work (even if just chat logs confirming terms)
Proof of payment(s) and amounts
Timeline/milestones promised vs. actual
Demand letter + proof of receipt
Full export of chats/emails + screenshots with timestamps
IDs/business details of provider (if any)
Any witnesses/other victims
Your preferred remedy (refund, finish service, damages)

Final notes

Start with payment dispute and a clear demand—they’re often the fastest ways to get money back.
If the scam is blatant or involves multiple victims, consider filing a criminal complaint alongside your DTI case or civil suit.
Laws and monetary thresholds (e.g., small claims limit, penalty brackets) change over time; if your claim is near any threshold, verify current figures with the court clerk or a lawyer.

If you want, I can turn this into a fillable PDF packet (demand letter + evidence checklist + sworn complaint template) tailored to your case details.