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Consumer Protection: Advice from The Bucks County Consumer Advocates

March 2010

Q.      My girlfriend and I have been looking for an apartment to rent.  We found one that seemed perfect so we signed a lease and put a deposit down at the end of February for the landlord to hold it for us.  We then decided in the beginning of March that it was too expensive and thought it would be better for us to just stay where we are and save up money to buy a house.  We have tried to get the landlord to return the deposit we put down, but he refuses. The landlord states that we signed a lease and we are obligated to that lease for a year.  We weren’t supposed to move in until the beginning of April and believe he was given enough notice.  Can the landlord hold us to that when we haven’t even moved it yet?  J.R., New Hope  

A.      Yes, once you signed that lease you were committed for that year.  It is extremely important for consumers to go over a lease with a fine tooth comb, but what is also very important is to first figure out if you can afford the rent and all the other bills that you have, plus any utilities that you may also be responsible for before ever signing the lease.  The lease is a contract that you are bound to once you sign it.   Bucks County Consumer Protection contacted the landlord to try to work out a resolution.  After consideration the landlord was kind enough to allow the couple to get out of the lease as long as they paid two month’s rent to give the landlord time to put it back on the market to rent.         Consumers can get a free copy of the Landlord/Tenant Act by calling Bucks County Consumer Protection at 1-800-942-2669.

A.      Our office has had an enormous response to the arrest of a local concrete contractor.  It took awhile for this business to go from being   reliable to being arrested on charges of contractor fraud.  On July 1st of 2009 the Commonwealth of Pennsylvania enacted a new law setting up guidelines, registration and penalties for contractors.  The new law is designed to help the contractor and homeowner stay on an equal playing field for home improvement projects. Our own state senator Tommy Tomlinson introduced this important legislation.
         This contractor is the very reason the law exists and the very reason contractors get a bad reputation.  He did not give estimates on business letterhead.   They were on scraps of paper or on supply house note pads.  He seldom had any written contract and he often took deposits without any agreed upon payment schedule.  Many times he asked for additional monies before the job even began.  
          We want to remind everyone that professional contractors who take pride in their business conduct it ethically.  When hiring a contractor both parties need to understand the complete scope of the project and its costs relative to materials and labor.  A real start date and finish date are not optional, they are necessary for both parties to be able plan a schedule. An agreed upon payment schedule is also necessary and it requires the contractor to actually complete a certain phase of the project before receiving any more monies.  Any contractor that requests more money before they can finish the job or complete a particular phase clearly is in trouble.  Homeowners need to stand firm and hold the contractor to the contract terms.  You can bet the business will hold the homeowner to the terms.  Jobs can get out of hand quickly if upgrades are made by the homeowner without understanding the actual additional costs to the final bill.  That being said all contracts that have any changes including upgrades, scope of work, time frame or material changes need to be documented and a change order should be signed by everyone so there is no misunderstanding at the end of the project.  Too often a homeowner is surprised at the cost of the little extras requested and upgrades.  It is usually no surprise to the contractor and that is why legitimate ones will not proceed without signed change orders. 
          To really understand what the law is about and what the requirements a contractor is obligated to, consumers should go to the Pennsylvania Attorney General website at www.attorneygeneral.gov.  All home improvement contractors are required by law to register and receive a home improvement contractor number.  That number is supposed to appear on all estimates and contracts and business cards and advertisements.  Consumers can get educated on the process by also viewing the information.
          As a final note, not every job gone bad or disputed contract constitutes contractor fraud.  A vast majority of businesses are run by good people.  We encourage the reporting of problems with businesses so any pattern can be spotted and maybe we can prevent too many people from getting taken over a period of time.

Q.      My fiancé and I are getting married this summer.  We’ve had many discussions about buying a home.  We even started checking out homes for sale.  We also understand that we need to look into the best mortgages.  What should we be looking for?  W.M., Levittown  

A.      Shopping around for a home loan or mortgage will help you get the best financing deal.  A mortgage, whether it’s a home purchase, a refinancing, or a home equity loan is a product, just like a car, so the price and terms may be negotiable.  Be sure to get information about mortgages from several lenders or brokers.  Know how much of a down payment you can afford, and find out all the costs involved in the loan.  Knowing just the amount of the monthly payment or the interest rate is not enough.  Ask each lender and broker for a list of its current mortgage interest rates and whether the rates being quoted are the lowest for that day or week.  Ask whether the rate is fixed or adjustable.  Keep in mind that when interest rates for adjustable rate mortgages go up, generally so do the monthly payments.  If the rate quoted is for an adjustable rate mortgage, ask how your rate and loan payment will vary, including whether your loan payment will be reduced when rates go down.  Ask about the loan’s annual percentage rate (APR).  The APR takes into account not only the interest rate but also points, broker fees, and certain other credit charges that you may be required to pay, expressed as a yearly rate.      Ask about the lender’s requirements for a down payment, including what you need to do to verify that funds for your down payment are available.  Also, ask your lender about special programs it may offer.  Find out if you have to purchase private mortgage insurance (PMI) and if so what the cost of that would be.  This is insurance which protects the lender in case you can’t make your payments. Once you know what each lender has to offer, negotiate the best deal that you can.

Q.         I know this may be a foolish question but is the 2010 census straightforward or will it ask personal and financial information?  If it does can I refuse to answer the questions?  C.W., Doylestown

A.         The 2010 census will be mailed out to 134 million households in the United States.  The census form is straightforward and only asks ten questions.  Participation in the census is actually required by Federal law, section 221, of title 13 of the U.S. Code.  If a household does not answer the questions and does not send the form back to the Census Bureau they will send a census taker out to get the information.  The census taker will go to all households who have not responded; they will try and contact the resident three times, each time leaving a door hanger providing a phone number to set a time to return and complete the form.  The census taker will only ask the questions that appear on the form.  There are absolutely no personal financial questions asked.  We realize there are many people skeptical of allowing someone in their home and answering questions that they may feel are unnecessary.  To avoid that, we suggest answering the census and mailing it back.  Here are the ten questions that you are required to answer: 1) How many people were living in this house, apartment or mobile home on April 1, 2010?  2) Were there any additional people staying here April 1, 2010 that you did not include in Question 1?  3) Is this house, apartment, or mobile home owned with a mortgage? Owned without mortgage, rented, occupied without rent?  4) What is your telephone number?  5) Please provide information for each person living here.  Start with a person here who owns or rents this house, apartment, or mobile home.  If the owner or renter lives somewhere else, start with any adult living here. This will be person number one and what is the person one’s name?  6) What is person one’s sex?  7)  What is person one’s age and date of birth?  8)  Is person one of Hispanic, Latino or Spanish origin?  9)  What is person one’s race?  10)  Does person one sometimes live or stay somewhere else?

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