Buyer Beware

Blog Post by:  Melissa C. Platt, Esq.

We’ve all been in that situation before…the one where we’re standing there scratching our heads and asking ourselves how we just got pressured into making that purchase or signing up for that service. Unfortunately, sometimes the tactics used by salespersons or people presenting themselves as salespersons, aren’t just persuasive—they are downright deceptive. I’ll share a couple of examples from my own family, and then I’ll talk about what you can do to protect yourself and vulnerable loved ones.

Last summer, an elderly widowed family member had a salesman from a residential alarm system company knock on her door. This salesman was a “nice” young man attending school at BYU. Because of his connection with an institution that she knew, she trusted this young salesman to disclose to her all the details of the contract he was asking her to sign and didn’t read the contract herself. (The print was so tiny, I don’t think she could have read it, even if she had wanted to!). I don’t fault this woman for not reading the contract because I’m an attorney, and I’ve done it before too.

Did you read every document in the six-inch-high stack of papers they set in front of you when you bought your home, or do you read all the terms and conditions before you click “I agree” when installing software? Who has time for that? Unfortunately, when she signed the alarm system contract, she didn’t realize that she was signing up for an initial 5 year term, which automatically continues for 18 month term after 18 month term, if she doesn’t write them at least 60 days before the end of one of these terms to let them know she is cancelling.
So, after a few months, my family member decided she didn’t want the alarm system anymore and packed it up and sent it back. Yet, the alarm company continued to send her bills month after month. Only after calling the company to find out why the bills kept coming did she find out that the bills would keep coming for the next 5 years for an alarm system that she no longer wanted or possessed.

Recently, my brother was at work when he received a phone call from a representative with Super Business Yellow Pages who called to verify the address and phone numbers of my brother’s employer in order to renew his employer’s yellow pages account. Then, about a month later, another rep from Super Business Yellow Pages called and informed my brother that his employer owed this yellow pages company $1,700 for past services and interest charges on their outstanding account. The yellow pages rep had legitimate info about the company and its president and threatened to send the account to collections if a check wasn’t immediately sent to cover the outstanding balance. Luckily, my brother was quick on his toes and asked the yellow pages rep to send him a copy of the contract. The rep promptly faxed him a copy of the invoice. My brother repeated his request for a copy of the contract (not the invoice!), which was never produced because the whole thing was a scam.

So, what can you do to protect or recompense yourself and your loved ones?

1. Become educated. The best way to avoid scams or deceptive practices is being able to recognize them for what they are. Utah’s Division of Consumer Protection maintains a “Buyer Beware List” for the purposes of “(1) protect[ing] consumers from individuals and businesses who have engaged in deceptive practices; (2) supply[ing] consumers with pertinent information so as to aid them in their decision making; and (3) encourag[ing] the development of fair consumer sales practices. It also maintains a list of current scams that the Division has investigated or been made aware of. In addition, it releases a “Top Ten Consumer Complaints” list. Not surprisingly, alarm systems made #5 and debt collection was #8 on the list. To view these complete lists, please visit the Divisions’ website: http://consumerprotection.utah.gov/index.html and click on the “Scams & Buyer Beware” tab. But be aware that even if a business is not on the list, it does not necessarily mean that they are an upstanding company.

2. Cancel the transaction. This remedy is really only available immediately after the deceptive transaction. Stop payment on the check or credit card, if possible, and then cancel the contract. If the sale is a “direct solicitation,” meaning the seller contacted the consumer at the consumer’s home or place of employment by mail, email, phone, or personal contact, and the sale involves $25 or more, then under Utah law (Utah Code Section 70C-5-102), the consumer generally has three days to cancel the contract. It is a violation of the Utah Consumer Sales Practices Act if the seller’s purchase contract does not notify the consumer of this right. For more information on this and other rules of the Act, visit http://tinyurl.com/3xzoq6f

3. File a complaint. If you feel you or a loved one has already been the victim of a deceptive practice, you can file a complaint with the Utah Division of Consumer Protection. Complaint forms are available on the Division’s website. Some consumers choose to file complaints with the Better Business Bureau, which has typically been viewed as a consumer protection type agency, but it is important to understand that not all companies are members of the BBB. Companies must pay to become members of the BBB, and as members, agree to abide by the BBB’s standards. If a customer of a BBB-member company files a complaint, then the company must respond to the complaint, but the company is not required to respond to the complaint in any certain way. In other words, the company is not required to resolve the complaint to the customer’s satisfaction in order to remain accredited by the BBB.

4. Hire an attorney. Depending on the circumstances, it may be beneficial to get an attorney involved. There may be legal grounds on which to challenge a contract and get it canceled, but it would be unrealistic to expect to recover any monies already paid to a scam artist. In my own family member’s case, after she asked us to get involved, she hasn’t heard from the alarm company again.

When dealing with anyone asking for your money or personal information, it is important to be cautious. Never hesitate to ask for some time to think it over before you sign anything or pay any money.