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Consumer Protection

Consumer Protection: Advice from The Bucks County Consumer Advocates

March 2008

Q. I have a tree that weakened in the last storm we had and I’m looking for a company that could remove it plus do some landscaping in my yard for the spring.  I had a really bad experience with a landscaping company last year and I’m a little leery about hiring another one.  I cannot do the work myself so I do have to rely on someone else to do the work.  Someone told me that there were a lot of problems pertaining to this particular type of business.  What is your take on this subject?  J.L., Penndel

A.  With spring upon us once again Bucks County Consumer Protection will see a spike in landscaper/tree removal complaints.  Every year we see the same problems.  People hire companies without checking to see if there have been any complaints against a particular company.  They don’t make sure that the particular company has a physical address.  P.O. boxes can be a problem because they can be easily closed without any kind of trail to locate the business.  One of the biggest problems is that a consumer will pay the business before the job is completed to their satisfaction.  When this happens, it can be very difficult to get the business back to finish once they have their money.  When having any kind of work done at their home, consumers need to get written estimates of exactly what work needs to be done.  You may want to get several estimates to compare.  Contact Bucks County Consumer Protection at 1-800-942-2669 to see if there have been any kinds of complaints.  Make sure you are completely satisfied before paying in full.   

Q. I have received several calls from a telemarketer.  I tell them I am on the do not call list and to stop calling.  My caller ID has the same number on it for all three calls.  When I called the number to complain I actually reached a pizza shop.  I spoke to the owner who said he has received several calls from other people concerning the same thing.  He said a sales outfit was using something called caller ID spoofing.  We both reported the incidents to the phone company.  Maybe I am asleep, but when did it become legal or possible to disguise an incoming phone number?  R.H., Bensalem

A. The Congress has had legislation to address the issue of fake caller ID.   Our office is unaware of any legislation actually becoming law.  Right now it appears that caller ID spoofing is legal, although many of its uses are not.  Telemarketers are not supposed to hide their numbers therefore they did violate the law.  The Federal Communications Commission states that most of these calls are linked to Internet telephone equipment and that equipment can set any number to appear on the caller ID.  There are practical uses for this technology such as law enforcement; they claim it protects agents from being discovered in undercover operations.  They can pretext calls to suspected criminals.   A pretext call is one that allows law enforcement to solicit information over the phone by pretending to be someone else.  Technology is a wonderful thing but with it comes a whole new set of problems.  The Internet is a wonderful tool but has also become a breeding ground for fraud and abuse.  There are several spoofing sites that will sell their service for a fee.  The sites state that the service is for entertainment purposes only.  However, we all know that there will be people who use it for the sole purpose of defrauding people.  The bottom line is that spoofing may have merit for government and law enforcement, but it is very easy to use the same technology for unethical and fraudulent activity as well.  Our office always advises people to be suspicious of emails, certain types of mailings, and unsolicited phone calls. Now you may not even be able to trust caller ID.  Remember, never give any information out to anyone unless you have verified the request to be legitimate.  If you should get calls that turn out to be bogus, call your phone company and report it.  We would encourage people to contact their Federal lawmakers and ask for legislation that would control the abuses of caller ID spoofing.

Q. I have a 2001 SUV that ran out of warranty.  I received a call from a company offering me an extended warranty.  I agreed to the offer of 48 months and/or 60,000 miles.  The extended warranty cost me $2,795.00.  The first time I needed the warranty was when my gas gauge wasn’t working.  I first had to pay it out to the mechanic and then the warranty company was supposed to reimburse me.  I did get the $730.00 back, but I had to really fight with them to get it back.  The next time I needed it was when my transmission went.  Again I put the money out to have the repair done to my SUV, but this time I’m not sure I am going to get any reimbursement.  Apparently the company is heading for bankruptcy.  I’m being told that I may get a portion back, but I’m not feeling confident that I will see anything at all.   This warranty should be good until 2010 and now I don’t know if I have a warranty or not.  I feel I made a mistake by buying the extended warranty.   R.G., Levittown

A.  Extended warranties can be a big gamble.  Most of the time consumers don’t get their money’s worth out of the deal.  Nowadays consumers don’t buy a new car without hearing the dealership finance manager warn you about how necessary an extended warranty is.  But extended warranties sell costly “peace of mind” for repairs that probably won’t occur.  Many consumers think of extended warranties as insurance, but they are not.  They can be describe as prepaid repair contracts, also known as extended service contracts.  Consumers also have to be careful of the fine print in these contracts as to what is actually covered and what parts are excluded.  Extended warranties typically don’t cover parts and labor related to normal wear items, such as brake pads, rotors, shock absorbers, belts, hoses, etc.  Another catching point is the word “reasonable costs” in the warranties.  So it could cost a consumer one thing and the company could say that the reasonable cost is a much lower rate.  Of course, in your instance it looks like the company may be going into bankruptcy and that is always a risk.  Even if you follow all the rules, you still might not be able to collect on your plan because the administrator went bust.  If a consumer wants to buy an extended warranty, you may want to look for a manufacturer’s plan which should be financially more secure. 

Q. I was looking to supplement my income with a part time job, something I could actually do from home if possible.  I saw an ad that said data entry, work from anywhere, flexible hours, PC required and an excellent career opportunity.  So I called the number.  When I called I could only leave a message and when they called back I was told they were an insurance reporting agency for medical claims.   When I started to ask some basic questions red flags started to fly.  I needed to purchase a special software package for a fee and then they would send a list of doctors who may need help filing insurance claims.  I never called back or gave them any information, but thought people should know.  Thank you. R. H., Fairless Hills

A.  There are so many offers to work at home or get involved in a home-based business selling product.  There are definitely legitimate jobs that people do from their homes.  Most of those jobs come from word of mouth and usually not from an ad.  The career opportunity did disguise this as an actual job offer.  You did a great job at spotting the red flags.  The software program you would have to purchase was probably two or three hundred dollars.  Not all software works with all computers, as we all know so well.  Your computer may be too old or require technical assistance to get it installed. 

Like many employment offers you would probably get a list of doctor offices, the list may be outdated or incorrect and most of the leads you could probably locate for free.  The real flag is that they are really selling a product to a consumer and the consumer has to go find the job.  It would totally rest on you to actually locate and negotiate your fee with any office that might actually provide you with work.  And your work may not be good enough and you could lose the job.  You would basically be considered a sub-contractor and the doctor’s office would not be responsible for any benefits such unemployment.  I wish everyone would take their time and put the effort into what you did and how you reacted. 

Although what this company and many others do, may be legitimate and legal there are very few opportunities that are without strings.  Anyone looking at Internet, mailing or computer work at home should always be skeptical and not be impulsive.  Red flags include there being no live person to take your information, the call back that throws the pitch, the cost of supplies or equipment, and the actual possibility of getting hired.  It is never a good idea to take so-called “testimonials” at face value.

Our office has several brochures about work at home schemes, medical billing, franchise and business opportunities and even the infamous seminar pitches.  If any consumer would like a brochure just call our office at 1-800-942-2669.  These brochures can also viewed and sent directly to you from the Federal Trade Commission.  They have a constantly updated website which is www.ftc.gov.  Just click on consumer protection and you can view hundreds of brochures and fact sheets.

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