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Consumer Guide: Ripe For Rip-Off

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From 8 On Your Side of News Channel 8

Published: April 2, 2008

Here are some tips from the 8 ON Your Side Series, "Ripe For Rip-Off." We hope they will help you avoid becoming a scam victim.

TELEMARKETING PITCHES

Commonly you receive a card in the mail telling you to call a 900 # to claim your prize. Beware of items that claim that you have won a contest that you have never entered. Many times the worst choice on the list is the list is the one you've won, and you will have to pay to claim it. The goal of these companies is often to get your credit card number: NEVER GIVE OUT YOUR CREDIT CARD NUMBER! Once they have it, they can do whatever they want. If something sounds to good to be true, it probably is.

Another scam most people have encountered is the chain letter. Chain letters are not illegal, however, those that tell you to send money and a copy of the letter to others is illegal. These types of letters constitute mail fraud because they make claims that are not true.

IF YOU RECEIVE something like either of the above situations, you should turn such information over to the Postal Inspector by writing "Mail Fraud" or "Chain Letter" on the envelope. To reduce the amount of junk mail you receive write to Mail Preference Service, Direct Marketing Association, 6 East 43rd St., New York, New York 10163.

INSURANCE SCAMS
Beware of insurance agents who try to force their way into your home and won't leave. Also, look out for those who slowly gain trust by just stopping by for visits. Take time to think over your decision when buying insurance. Check licenses and compare rates. Have an unbiased (friend) third party give their opinion.

If you're solicited over the phone and interested in the program, check with the Florida Department of insurance (800) 342-2762 before allowing them to give you a sales pitch. Ask for someone's name and call them back if you are still interested. Don't let yourself be pressured into making a split second decision.

You should know what your insurance covers and ask for a company receipt of payment. For Health Insurance, the agent should be able to provide you with an outline of coverage. Make sure your insurance company is State Licensed. It is the only way you can take advantage of the State's Insurance Guaranty Fund. Make your check payable to the insurance company not the agency. Fill in all the blank spaces on checks and always complete your own checks or have a friend do it for you. Do not hand an agent a blank check.

IF YOU HAVE an insurance question or problem call the Insurance Consumer Helpline at 1(800)342-2762. The Florida Department of Insurance offers many helpful, free consumer guides in reference to different types of insurance. You can contact your local insurance office or the 800 number listed above. These guides offer information such as basic facts, consumer tips, rights and responsibilities, comparison shopping examples, and a glossary explaining insurance terminology.

AIR CONDITIONING CONTRACTORS

In conjunction with the Refrigeration and Air Conditioning Association (RACCA), below is a list of helpful hints to utilize before hiring a contractor.

SELECTING A CONTRACTOR

1. Consumers should first give consideration to their regular servicer. If you have been dealt with honestly and trust your existing contractor, it may be more costly for you to change servicers because of less expensive or special prices.

2. When selecting a new firm, you should ask the contractor for proof of a competency license. All contractors must be either certified or registered by the State of Florida.

3. Check the firm's business history with your local Consumer Affairs office or Better Business Organization.

4. Ask for consumer references from the business. You should specify a list of customers that have had a long term relationship with the firm.

5. Ask neighbors or friends who they use. Many times they have had a continuing relationship with someone they trust or will be able to guide you away from unscrupulous businesses.

6. Make sure the contractor has Business Liability insurance for your own protection.
The Refrigeration and Air Conditioning Contractors Association can provide advice or references for those seeking a servicer. RACCA services Hillsborough, Pinellas and Pasco Counties and may be reached at (813) 870-2607.

Call the Department of Business and Professional Regulation Customer and Call Center at 850-487-1395. In addition, consumers may visit www.myflorida.com to verify if someone is licensed and in good standing with the department.

* * WHEN IN DOUBT GET A SECOND OPINION!! * *

CONSUMER TIPS FOR AVOIDING A.C. SERVICE RIP-OFF'S

Below are consumer tips provided by RACCA which highlight some of the warning signs that are typical of unscrupulous activity.

Any one of these situations, by itself, may not constitute a rip-off, but when one or more occur - the consumer should be wary:

1. Extremely inexpensive prices for "clean and check" or "tune up" services.

2. The business should provide the full service as promised. If this isn't done, or the majority of the visit is spent trying to make a sale, the consumer should be concerned.

3. If a business states they are divisions/subsidiaries of your regular servicer, or that they have acquired your servicer's accounts, you should beware.

4. Look for the name of your servicer on the service vehicle, or the serviceman's shirt, and on any invoice. Many company names are similar.

5. Don't be influenced by claims that "The compressor is really hot" or "It could blow up or catch fire." Compressors are always extremely warm when on and they do not blow up or catch fire.

6. Don't be influenced by handfuls of rust particles or bottles of rusty water. Ask to see the described situation or if you're unable, ask a friend to look.

7. Ask for old parts when you pay for new replacements. If it is a warranty part, the serviceman may be required to return it to the manufacturer.

8. High pressure sales tactics include claims that he equipment is a threat, special pricing for a limited time or that stocks are limited. DO NOT be forced into an immediate decision.

Special thanks to Keane Bismark and RACCA for providing this information.

CASE SCENARIOS

1. You hired a contractor for a major home remodeling job. When he arrives, he says he needs to be paid in full before he begins. That's because your job is so special and complex and he needs to buy materials.

WHAT DO YOU DO?

A. You question him. But when he says everybody does it you pay.

B. You agree fifty percent payment up front.

C. You ask for a detailed contract, give no more than twenty percent (20%) up front and set up progress payments.

2. An air conditioning company calls and wants to come out to your home. It's time for your free clean and check. After 5-10 minutes of looking around, they say you need major work. It will cost $1,700.00 and the problem could cause a fire.

WHAT DO YOU DO?

A. Concerned about your house, you pay the money.

B. You have the contractor put his findings in writing. You then call RACCA for a second
opinion.

C. You ask to see the problem part. When you're shown it's worn out you pay.

3. Your car is having trouble stalling or switching into gear. You bring it to a repair shop and are told it will cost $250.00. When you pick up the car, you discover the bill has grown to $600.00.

WHAT DO YOU DO?

A. You tell the manager you never approved $600.00. You don't pay the repair shop. Instead you use the car bond law.

B. You need the car, so you pay the amount under protest.

C. You argue with manager. He takes $100.00 off and you pay $500.00.

ANSWERS:

1. C is the correct answer. Never give one hundred percent of the money up front. There's less incentive for the contractor to come back. You want a detailed, written contract including a schedule of payments.

2. B is the correct answer. If you're not an air conditioning expert, you won't know if a part looks bad. Ask the contractor for his findings in writing, then obtain a second opinion. If you qualify, you can do this through RACCA for free. Do it before paying anything.

3. A is the correct answer. With the car bond law you still have to come up with the total amount of the bill, but you post it with the clerk of circuit court in your county. If the shop doesn't file suit to get the money within 60 days, you get your car and money back. If they do file suit, a judge decides where the money goes.

Any questions regarding the car bond law should be directed to your local clerk of the circuit court.

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