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Consumer Protection : Advice from The Bucks County Consumer Advocates

August 2006

Q. I remember reading awhile back about someone who took a loan against his vehicle. The lender was based in Delaware and I think the borrower had given his title as security. Well, my son has done the same thing and I cannot believe the interest and the tactics that they use. There is no way he will be able to pay back the loan and not lose his car unless my wife and I help him. I seem to recall that your office referred to a helpline. Can you give the number out again, and what was the outcome of the previous title loan? B.J., Warwick

A. The outcome of the previous title loan is still pending in court. The organization representing the consumer believes these types of loans and their terms to be illegal in Pennsylvania. The organization that we referred the consumer to is called the “Don’t Borrow Trouble Campaign of Southeastern Pennsylvania”. It serves Bucks, Montgomery, Chester and Delaware counties and has celebrated its first year anniversary. They have helped hundreds of people who have predatory loans. Although they mainly focus on mortgages and refinancing loans they do get involved with any loan that may violate Pennsylvania law or may be considered predatory in nature. We suggest going to their website at www.dontborrowtroublesepa.org or calling the toll free number at 888-275-8843. Many bad loans tend to have hidden costs and fees that only put the borrower deeper in debt. Any consumer who may be thinking about a new mortgage or refinancing and who has questions or paperwork that they are not sure of should call them.

Q. I’m interested in purchasing a hot tub. Friends of mine had one installed in their back yard and really got the run around by the dealer so I know I won’t use that same dealer. They paid for installation in their contract, but the dealer tried to charge more when they went to install the tub. What are some of the things that I should look out for? F.O., Newtown

A. When looking for a hot tub, be sure you shop around for the different makes and models. Some are more expensive and you could be just paying for the name. If the dealer states that the price includes extras such as a cover, extra chemicals, steps leading up to your hot tub, installation, etc., be sure all the “extras” are written out specifically in the contract. With the installation, make sure it’s written where the hot tub is to be installed. There was a situation similar to your friends’ where the hot tub was to be installed in the backyard. The argument occurred because the dealer stated that he didn’t know that it was to be installed on a hill and needed extra equipment to get the tub up the hill. He wanted the consumer to pay more money for the equipment that they would need to get the tub up the hill. Luckily for our consumer he had the specific location of installation in his contract. The Troubleshooter also found that some dealers will not install the electric that you need to run a hot tub, so that would be an extra cost to take into consideration. Contact Bucks County Consumer Protection at 1-800-942-2669 to check on any prospective dealers you are thinking of using.

Q. I received a call concerning an open call for models/actors that was being held at a hotel. I filled out a form and was interviewed by the president to see if she wanted to manage me. There was even a contract that I had to sign making me believe that this was a legitimate company. She told me that I would need photos for comp cards, that I would be responsible for paying half of the $2400 cost, and that she would pay the other half, $1200 for comp cards, head shots, etc. She insisted on using her own photographer. It turns out that the photographer is her own son. I was then showed my pictures on the computer. At this time I had to give my final payment. That is the last time I have heard from her. I leave messages and never get a return call. I went on line and I found that there are a lot of victims. This woman has taken money and either hasn’t given any pictures or followed any of the promises. If you did receive pictures, they were of very poor quality and no head shots or resume. I spoke with one woman whose daughter was contacted through “myspace.com”. The company president seems to target young girls and lead them to believe they could be cast into a commercial, soap opera, or even a movie. Money is taken and hopes are crushed by this deception. Is there anything we can do about this shady business? G.H., Bensalem

A. Bucks County Consumer Protection has had a few complaints with this business. Before considering giving money to a company that promises to make you a star, or if you have already given money to one of these companies, please contact Bucks County Consumer Protection at 1-800-942-2669 or 215-348-7442.

Q. I have had my leased vehicle for awhile. I have to turn it in within the next four weeks because the lease expires. I have always had the service work done at the dealer where I got the lease. What should I be aware of when I drop the vehicle off? T.M., Hulmeville

A. A consumer should be concerned about the basic issue of the mileage and condition of the vehicle. Make sure you speak to a representative before the lease expires. This will allow you to co-ordinate the drop date and time. It will also allow them to have someone there who can perform a condition report. It is extremely important to receive a copy of the condition report. You should never just drop the vehicle off and leave without getting a copy of the report. The condition report is a paper that lists scratches, dents, dings, mileage, and basically covers the condition of the exterior of the vehicle from top to bottom. It should also evaluate the interior of the vehicle, making sure there are no ripped seats, torn headliner, and so on. Consumers need to keep in mind that once you drop off the vehicle, it is out of your sight and care. If you do not have a condition report and just leave the car and something happens to it, you will end up with a bill from the lease company and have no way to dispute it. It is also a good idea for the consumer to photograph the exterior and interior as backup. This is a good idea especially for rental vehicles that usually just get dropped off in a garage or after hours. Our office can send consumers free brochures on leases and auto sales, used or new. Call 1-800-942-2669.

Q. I am currently unemployed and saw a website for earning money. It was about doing surveys from your home. The only catch I saw is that I need to pay a fee to get started. The fee was to cover setting up my account. How can I tell if a site is real or not, and can I really make money? K.W., Croydon

A. The website may look professional but that really means nothing today. The real red flag was the fee you needed to pay before you could start working. You should never have to pay money to find out how to work for a company, or pay just to find information about a job. Some of these fees can be as little as ten dollars and some may cost thousands. Work at home schemes are almost never upfront and tend to cost consumers money, time and aggravation. This particular offer is for online survey work. Our advice for anyone considering a work at home job, whether it be online or by mail, is to not get involved. The potential to lose your money is far greater then the potential to make money.

Q. Last year my husband made a big mistake and bought a truck that we couldn’t afford. The dealer wouldn’t let us return the truck so we tried to make due. It’s getting harder and harder to make the payments and we have received late notices and penalties. I’m worried that we are going to lose the truck. Can they just come and take our truck? P.Y., Tullytown

A. Yes. When you finance a vehicle, your creditor holds important rights on the vehicle until you have made the last loan payment. If your payments are late or you default on your contract in any way, your creditor has the right to repossess your vehicle. This can be done legally without going to court or warning you in advance, as long as they do not breach the peace. It is easier to try to prevent vehicle repossession from taking place than to dispute it afterward. Contact your creditor when you realize you will be in default. Sometimes you may be able to negotiate a delay in your payment or a revised schedule of payments. If you reach an agreement to modify your original contract, get it in writing to avoid questions later.

Q. I received a letter from a company located in Maryland, called USA Home Loans Inc. They imply that I may be owed money from an FHA loan that I had several years ago. It looks like it has to do with overpayment on mortgage insurance protection. They gave me a case number and claim they can assist me in getting the refund. I figure this is just another scam or solicitation from a re-mortgaging company, but I did actually have an FHA loan and am wondering if there really is a refund due to me. Do you folks know anything about this? L.K., Chalfont

A. Some FHA homeowners are really due a refund. Apparently the MIP or Mortgage Insurance Protection premiums that were paid ended up being too high. The insurance is designed to protect the lender, in this case the FHA from the risk of the homeowner defaulting on the loan. Unfortunately there are many third party companies, called tracers, which have been contacting consumers and offering to help for a fee or percentage of the refund. Although it is not illegal, it is absolutely unnecessary to do. Consumers who actually held or still hold an FHA loan can simply call the U.S. Department of Housing and Urban Development support center at 1-800-697-6967 and see if a refund is due.The callis free and the refund process is simple and costs you nothing. Consumers can also visit the HUD website at www.hud.gov for information concerning refunds. Many of these third party companies exploit the consumer. Consumers are always welcome to call our office when they have concerns about a letter or call that is suspicious or sounds too good to be true.

Q. I have lived in this apartment complex for a little over five years. I believe I keep my apartment very clean and livable. About a year and a half ago I started experiencing problems with roaches. I have complained to management several times, but the bugs are still there. Management has sent exterminators out on several occasions, but it doesn’t seem to help. What can be done? D.P., Bensalem

A. The problem with bugs in an apartment complex is that you may be keeping your apartment clean, but you and management must rely on how clean the rest of the tenants in the complex keep their own apartments. As you stated, management is following through on their responsibility. Some of the responsibility must fall on the tenants and how clean they keep their own units. Basic housekeeping issues need to be adhered to in order to rid the complex of insects. When there are several units in a building, everyone needs to work together and cooperate with management regarding infestation issues. This can become a daunting process. For the complex not to be filled with bugs the tenants and management must work together or it will be an impossible task. Management has agreed to send a letter to all tenants to implement a viable plan for extermination.

Department of Consumer Protection /
Weights and Measures
Michael D. Bannon
Director
50 North Main Street
Doylestown, PA 18901
Phone: 215-348-7442
Fax: 215-348-4570
Canny Consumer Hotline 1-800-942-2669