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Consumer Protection: Advice from The Bucks County Consumer Advocates

June 2007

Q.      We were planning to use our tax refund to finish the basement into living space.  Unfortunately the refund falls short of what we need.  It has been a long time since I or my husband have applied for a loan.  I am also aware that some lenders have been taking advantage of borrowers.  We are senior citizens and do not want to lose our home to a bad loan.  How do we best protect ourselves?  G.H., Wrightstown

A.      Whenever you are doing home repairs and need to finance them, shop around.  When shopping for your loan compare all of the costs of the transaction.  Do not get pressured into taking out more than you need for the project to be completed.  Some lenders may try to convince you that this is an opportunity to pay off other debts.  They may also try to sell you insurance on the loan.  That is profitable for them but usually unnecessary for the consumer.  Be sure you get a copy of all the costs and what the entire loan will cost when paid back.  Make sure that there is no pre-payment penalty or conversion into a balloon payment.  Federal Law requires that the consumer have a three day rescission right.  Read everything in the loan documents before you sign and question anything you do not understand.  The Pennsylvania Department of Banking has great information available online at www.banking.state.pa.us or call them at 800-722-2657. 

Q.      When a children’s book came in the mail, my wife opened it up and gave it to my daughter thinking I ordered it.  Two weeks later we received a bill in the mail for the book.  I called and they said that if we didn’t want it we were to send it back unopened.  My wife did not see anything that said that.  If we didn’t order it, do we have to pay for it?  J.K. Bristol 

A.      Federal law prohibits mailing unordered merchandise to consumers and then demanding payment. Bucks County Consumer Protection contacted the company and you will not receive another bill.  You have a right to keep this as a free gift.  If consumers receive something of value in the mail that you did not order, you might want to write a letter to the company.  Write that you did not order this and that you have no obligation to pay for it or return it.  Give the business 30 days to arrange to have it returned at no expense to you.  Also put in the letter that if they don’t pick it up in the time you gave them, you have the right to keep the merchandise or dispose of it.  You should make a copy of your correspondence and keep it for your own records.  

Q.  My father thinks he can just cut up several of his credit cards to close the accounts.  He reads the column and said he would follow the advice.  What is the proper way to close an account?  S.W., Perkasie

A.   Cutting the cards up is a great way to not use them, but it will not close the account.  We are experts on credit ratings, but some say not to close accounts or not to close too many at once as it may affect your credit score. That being said I am assuming your father is retired and is just simplifying his world.  A good way to close an account is to call the company up and tell them you wish to close the account.  Ask them to send you a letter stating that the account is closed at the customer’s request.  This way you can be sure of when it was closed and why it was closed.  If you do not get a confirmation letter within a reasonable time period call them and ask what is going on.  If in fact you cut several cards up and are not sure what accounts you had or may still be open we suggest running your free credit reports.  They should be helpful in identifying accounts as long as the reported information was correct.  Any incorrect or inaccurate information may be disputed through the credit bureaus.  You can get free annual credit reports by calling 877-322-8228 or go online at www.annualcreditreport.com.  

Q.  I hired a contractor to build a dining room onto my home.  The contract stated that I had to pay a third down as a deposit, a third in the middle of the job and a third upon completion.  The room was finished except a few small items, which the contractor said he would come out to finish the next day.  I paid him the final payment and now I can’t get him to come out to complete the few items.  He said he would do the work when he had time between his other paying jobs.  How can I get these few items done?  D. P., Furlong  

A.   By giving him the final payment before the work was truly completed, you didn’t leave yourself much recourse.  The contract stated that the final payment was to be given upon completion of the job.  The job is not complete until you are satisfied with the work and all work is done.  Bucks County Consumer Protection was able to arrange a day with the contractor to come out to your home, and the work has been completed to your satisfaction.  If you have a contract that states final payment upon completion of work, don’t let a contractor talk you into giving up the payment because “there are only a few things left.”  Stick by your contract.  Please contact Bucks County Consumer Protection at 1-800-942-2669 for a free brochure on Home Improvements.   

Q. My son is looking for a used car to get him to his summer job.  He is still in college and doesn’t have a lot of money.  He doesn’t want to waste his small amount of money on a car that will break down within a couple of days and cost so much more on repairs.  Can you give some tips on buying a used car?  D.M.,  Fairless Hills 

A.   Even a used car can be an expensive endeavor, but if you do some homework and shop around you can save yourself a lot of money and aggravation in the long run. The first thing to do is decide how much money you can afford and don’t allow yourself to be talked into spending more by some sales person.  When you have found a car that you may be interested in there are a few quick items that you can look at right off the bat.  Look for rust on the exterior, poor suspension, and functionality of seatbelts, locks and windows.  Take the car for a test drive, paying close attention to the brakes, acceleration and alignment.  If all this looks good to you it would be in your best interest to take the car to an independent mechanic for a mechanical and safety inspection.  If the dealer will not allow you to take the car to a mechanic you may want to bring the mechanic to the dealership.  If the dealer won’t let you do this, you should be leery of what the dealer may be trying to hide and move to another dealership.  Another thing to be leery of is the pressure tactics.  Don’t be talked into buying a car without fully checking into the car.  Consumers can also look on www.carfax.com to get the history on a particular used car.  Also, call Bucks County Consumer Protection at 1-800-942-2669 to check a particular dealership.  

Q.  We are getting ready to purchase some major appliances.  A friend of ours told us we might be able to get a tax break on the purchase.  How do we find out?  D.C., Tullytown

A.  That depends on what products are purchased.  The Energy Policy Act 2005 offered consumers federal tax credits for buying certain energy-efficient products.  They range from qualified heating and air systems to windows and doors. For specific information on what qualifies and when the tax credits expire go to the U.S. Department of Energy’s website at www.energy.gov.  They have great information for everyone and excellent links for more information.  Even if an appliance is not qualified for any tax break, simply being energy efficient will result in lowering your operating and energy costs. Another great resource can be found at www.energystar.gov.  With fuel and energy costs continuing to escalate, consumers are feeling the squeeze.  We encourage consumers to do their part in conservation. 

Q.  My wife filled up our car this weekend.  She thinks she was ripped off.  The car took almost sixteen gallons.  It usually takes fourteen gallons.  We called the dealer and they told us that the tank holds fourteen gallons.  She has the receipt and would like to know what can be done?  C. R., Warrington

A.   With gasoline costs steadily rising many consumers who drive are paying close attention to the pump.  Bucks County Department of Weights and Measures inspects and tests all gasoline meters in Bucks County.  They also test and inspect oil truck meters, retail store scales, timing devices and more.  They have received numerous complaints in recent months.  Your complaint is a common one.  The vehicle manufacturer does not provide your vehicle with a certified tank.  That means they estimate the tank holding fourteen gallons.  In reality the tank could hold up to seventeen gallons.  If the tank was certified it would add a substantial cost to the vehicle.  We had the weights and measures staff check the station pumps and they were correct.  If any consumer would like to know more about the testing process or the other duties that our weights and measures department performs call 215-348-7442 and we will send out a brochure specifically on the Bucks County Department of Weights and Measures.  

Q.  We are moving in August and are looking for a reliable moving company.  We have been asking around to see if anybody knows a good moving company and no one has anything good to say.  What can we do to find a reliable moving company?  D.Y., Bristol

A.   Most moving companies are reliable, but the dishonest ones tend to stand out with their fraudulent business practices.  The best advice is to investigate the moving companies that you are interested in.  Get written estimates from at least three moving companies.  The estimate should be based on an actual inspection of your household goods.  Be cautious 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 its estimate.  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 are 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 them, 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.    

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