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Consumer Protection : Advice from The Bucks County Consumer Advocates

May 2006

Q. One day after I purchased a car, I tried to return it to the place where I bought it. The business said that I signed a contract and cannot return the car. Isn’t there a law that gives me three days to cancel? H.S., Hulmeville

A. You purchased and signed a contract for the car at the dealership, not at your home. A purchase from a business at the usual place of business does not provide for a three day right to cancel. The law is for sales transactions made in your home. The law gives you three days to cancel, without penalty, any contract for more that $25 that results from a contact with or call on you at your residence either in person or by telephone. The seller must give you a written notice of that right, and must also tell you orally that you have that right to cancel. There are a few exceptions to the rule. For a free brochure on the “The Cooling-Off Rule” contact our office at 1-800-942-2669.

Q. My family and I have been living in the same apartment for four years. Every year there has been a small rent increase, which I have no problem with, but this time management raised our rent $150.00 a month. I tried to explain to my landlord that it is much too high and that I cannot possibly pay that amount. He then told me I would have to move out. Can a landlord raise the rent that much? J.F., Morrisville

A. Unfortunately there are no rent caps in Pennsylvania. The landlord can raise their rent as they see fit. The landlord must follow his lease. If the lease states that there be a thirty day written notice about a lease renewal, then the landlord must provide you the written notice. The notice would state his intention to raise the rent to a specific level. If you choose not to accept the renewal terms the landlord may choose to terminate the lease at the termination date and rent to someone else. If you would like a free copy of the Pennsylvania Landlord/Tenant Act, please contact Bucks County Consumer Protection at 1-800-942-2669.

Q. I know that I can get a free credit report but I would like to know which website or phone number to use. There are a lot of look a like sites out there. J.S., Falls

A. You are correct on the number of free credit report sites. Many of them will send a free report if you sign up for their service. Most of the services consist of monitoring your credit report. The service is usually free for the first thirty days then a fee is charged on a monthly basis. Most of these services are not worth the money. The free credit report website is www.annualcreditreport.com. You can also call 1-877-322-8228 and request the report. The actual mailing address is Annual Credit Report Service, P.O. Box 105281, Atlanta, GA., 30348-5281. Please keep in mind that they will ask for pertinent information so they can verify your identity.

Q. A person went around my neighborhood handing out a flyer that offered homeowners a deal on yard work. I hired them to clean up my yard and mow my lawn. I gave them the full amount of $250.00 and they started the work. In the middle of the work they stated they had to run out for a little bit, but would be back to finish the job. I haven’t seen them since. I was able to talk to the woman whose name was on the flyer. She said that I got my money’s worth and that was the last time I was able to reach her. Is there anything that I can do? N.G., Warminster

A. There isn’t much you are going to be able to do since you only have a first name of the woman and a phone number that cannot be traced to anybody. It is important to have complete information on the person who’s going to do work for you. Also, a consumer should never pay for the work in full until the job in completely finished. Another thing to remember is if you do not have a written contract for the work that is to be completed, it will be your word against the business. Before letting anyone do work for you, get their full name, address, and telephone number. A Cell phone cannot be traced to an individual. Make sure you get what they promised to do in writing and don’t pay them in full until the work is done in full. Please understand that this Troubleshooter does not refer to the neighborhood kid who wants to mow your lawn for the summer.

Q. I am interested in sending my child to a summer camp in the Pocono Mountains. We have had a few campground representatives come to our home and basically do a dog and pony show. It usually starts out with beautiful pictures, extensive activities lists, a video and ends with pressure to sign a contract now to reserve space for the summer. Does Pennsylvania have a department that regulates campgrounds and do you have any advice? D.C., Tullytown

A. Summer camps can make for memorable summers or horrible nightmares. There is no specific department that regulates or does seasonal inspections of campground facilities. If the campground has a kitchen and sewer facility then the health department can inspect and enforce any violations that may have been reported. Other than that there is very little in the way of regulation. The American Camp Association and The National Camp Association are good places to evaluate potential camps. Checking with your local consumer protection office can also provide you with information for choosing a camp. As far as some guidelines, never sign or put down a deposit no matter how much you are pressured. Review the contract for the refund and cancellation policy. Presentation of the camp by the representative will always look good and the pictures and videos usually show a very clean, safe and happy environment. The camps are referred to as rustic, not rundown. The buildings, sanitary conditions and welfare of your children should be not only your concern but also the owners’ concern. Is the staff qualified, and have background checks been done to ensure the safety of the children? If the camp has a pool or body of water, are there certified lifeguards? Does the camp have medical personnel, and how close is it to a hospital or clinic? The only way to confirm the actual condition of any camp is to physically drive there and check it out. Do not be fooled by statements such as the camp has been closed all winter, but it will be ready for the season. Look around; does the property appear to be in need of summer cleaning or does it appear to have had little or no maintenance for years. Hopefully these guidelines will help you in your selection.

Q. My problem or complaint is simple. I bought a gift card from a bank and had nothing but problems using it. When I finally got the activation and pinned squared away I realized the card fee’d me to death. I think it is intentionally designed this way. Aren’t there any regulations regarding gift cards? H.S., Langhorne

A. Not all gift cards are created equal, that is for sure. Gift cards and gift certificates are absolutely a big issue and need uniformity and regulation. One of the biggest problems is that the issuers all do something different. Consumers do not get a written agreement when they purchase the card that explains all the conditions of use and the fees that apply. Some cards charge fees to get a pin number, some charge fees every month it is unused and others charge a fee just to activate it. The reason they are so popular is the issuers tend to make a lot of money on them through those fees, so they promote them heavily. We encourage all consumers to get involved and ask their legislator to address this issue. Technology is a great thing but it also outpaces common sense and current regulation. Whether the issue is done on a state level or federal level it absolutely needs to be at the very least uniform in fees and terms.

Q. I have used several online casino sites for the last year. I never had a problem placing a bet or getting paid for a win. But just recently I cannot get a casino to make good on a bet. Since I used my credit card do I have any rights? E.H., Fallsington

A. You can certainly contact your card company and try to get their help. However, according to the U.S. Justice Department, internet gambling is illegal. Under Title 18 of the U.S. Code, the section known as the Wire Act, this prohibits the use of phone lines for placing wagers. The act includes internet gambling. That is why the casino and gambling sites are located off shore and overseas. The online gambling craze of the last couple years has created many financial problems for people of all ages and economic backgrounds. Our advice is to not use these sites.

Q. We are purchasing our first house. We are being told that we have to get a special kind of insurance. This is over and above the insurance that we will already need to have for the house. We don’t feel we are getting an explanation for this insurance. Can you please explain this to us? J.Y., Cornwell Heights

A. The insurance that you are referring to is called private mortgage insurance or PMI. This insurance protects the lender against loss if you the borrower stop making payments. Provisions of the Federal Homeowners Protection Act, which took effect in 1999, establish rules for the automatic termination of PMI policies in certain instances, such as when the borrower’s equity in the home reaches a certain level. Because the coverage can cost a borrower several hundred dollars each year, knowing when this insurance is no longer required can save you money. Once you have reached 20% equity in your home by appreciation, improvements made to the home, or paying down the principal balance of the mortgage, you may cancel. If you are able to meet one of these requirements you should request in writing to have your private mortgage insurance canceled. You may have to provide the lender with proof of sufficient equity. Ask you lender to provide in writing their specific requirements to cancel PMI insurance.

Q. My family and I relocated a few years ago due to a job transfer. We had a terrible experience with the moving company. We spent an entire year fighting them to resolve the matter. It was such a bad experience that when my husband told me that we would have to move again I felt sick. What can I do to make this move a better experience than the last move? H.P., Trevose

A. Most moving companies are reputable and do quality work. But the dishonest movers do stand out with their fraudulent practices. It is important for you as the consumer to learn as much as you can about the moving companies that you might be interested in hiring. Get a written estimate from several movers. The estimate should be based on an actual inspection of your household goods. Be leery if the mover doesn’t offer or agree to an on-site inspection before giving you an estimate. Make sure the mover has insurance and is licensed by the proper authority. You can double-check a mover’s license on www.protectyourmove.gov. Make sure each moving company has an address on their estimates. The company should provide you with a copy of “Your Rights and Responsibilities When You Move”. This is a booklet the movers are required by federal regulations to supply to their customers in the planning stages of interstate moves. Some red flags to look out for if the moving company demands cash or a large deposit before the move, if they claim all goods are covered by their insurance, or when you call their phone is answered with a generic “Movers” or Moving company”, rather than the company’s name. For more information on moving companies contact the Public Utility Commission at the Philadelphia District office at 215-965-3721.

Q. I am getting ready to buy a used car and I will need financing. Is it a good idea to go through the car dealer or through my own bank? I know my credit isn’t great but it’s not horrible. How will that affect my purchase? C.P., Feasterville

A. Many auto loans done through the dealerships are competitive. But you should also check with your bank. However consumers should know what their credit score is and how that score relates to a loan. The better your score the better your interest rate. Now our consumer alert. Do not sign any paperwork for the car until you have financing guaranteed with a letter from the lender stating your approval and the full terms of the loan. Do not allow yourself to be pressured to make a decision. Give yourself 24 hours to sleep on it. Make sure the terms spell out the annual interest rate, the cost of the interest over the life of the loan and does not have any prepayment penalties. Consumers need to remember Federal law requires a truth in lending statement be provided by the lender. Too many consumers sign paperwork accepting the car first and then financing second. The problem is if your credit is not great your payments may be too expensive for you to actually make. So your vehicle choice may need to change to a less expensive car. For tips and suggestions on buying or financing a vehicle please call Bucks County Consumer Protection at 1-800-942-2669.