How are consumers protected from abusing the recovery fund?

Consumers are protected from abusing the recovery fund by requiring an application process for payments. This structured approach ensures that only eligible claims are considered, reducing the risk of fraudulent requests or misuse of funds. By mandating that consumers formally apply for compensation, the system can perform necessary due diligence to assess the validity of each claim. This not only upholds the integrity of the fund but also ensures that it remains available to those who genuinely need assistance due to improper real estate practices. The necessity of an application helps to create accountability and transparency in the distribution of funds.