With just a little help, consumer gets $5K back
By BILL BROOKS
CDA Press Consumer Guy
STAR CONSUMER OF THE WEEK (or Consumer’s Revenge): The local consumer called me to complain about a local scammer who had taken $5,000 to perform specified landscaping services. Once paid, the crook cashed the check and refused to do any work or communicate with the consumer. The consumer took the matter to small claims court. The consumer won by default. The scammer didn’t even answer the lawsuit or show up.
The consumer contacted the scammer and demanded that he pay the money he owed. The deadbeat informed the consumer that he was “judgment proof.” In other words, he had nothing in his name — no property, no bank account, no nothing.
I suggested the consumer ask the court to require the scammer/debtor undergo a judgment debtor examination.
During this procedure, the person owed the money can ask the guy who owes the money to bring to court documents, such as the last seven years of federal and state income tax filings, all bank records, checking, savings and investment accounts for the past seven years. The consumer can also demand copies of all records relating to any real estate owned or occupying, and all vehicle titles and registrations for the past seven years.
Most debtors who are trying to be “judgment proof” find this request to be too troublesome and intrusive and decide to pay the judgment.
The scammer/debtor was brought to court. He told the judge he felt the questions were too intrusive. The judge disagreed. Rather than answering the questions and providing the required documents, the crook decided to pay the judgment!
(P.S. A legal book called “Am Jurs” has 99 sample questions that have been ruled as legal to ask people who refuse to pay their judgments.)
I often send the debtor a list of potential questions they will be asked. That’s usually enough to “encourage” them to do the right thing. You can’t be sent to jail for owing someone money but you can be fined and/or jailed for contempt of court. Refusal to answer questions or bring the required documents to court is often ruled as contempt of court.
Get a judgment and if not paid, put some pressure on the debtor using a judgment debtor examination. Usually, as in this case, the threat is enough.
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Think you don’t need a written contract? Think again. If the goods or services you’re buying are insignificant, both in terms of scope and cost, then a written contract is more than likely overkill. I do not have a contract with the guy who mows my lawn. If there’s a problem, I let him know and he fixes it. If he doesn’t fix it I find a new guy.
Verbal “contracts” are fine for small jobs or purchases.
Even small purchases are often covered by contracts. Take for instance your purchase at the local hardware store. The other day I bought a replacement doorknob for a closet. When I got home it didn’t fit the door. I took it back. Of course I had lost the receipt. (Believe the people checking you out when they tell you to keep the receipt.) After filling out paperwork that would be more suited to taking over a Swiss bank, and providing more proof of identify than is required to enter CIA headquarters, the store finally refunded the purchase price of the doorknob ($6.97). Keep your receipts; they are a form of contract.
On the other hand, if I decide to do a major landscaping project or install a new sprinkler system, I will have a written, detailed contract, before the project starts.
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Having established the need for written contracts, the savvy consumer needs to know how to read a contract and understand what each provision means. Not all written contracts are equal. A good contract lays out in detail the agreement between the parties in terms of what goods or services the consumer is contracting for.
In the case of contracts, don’t simply ask how long the guarantee is good for, but what are the terms? Recently a consumer called complaining that they had purchased a king-size mattress a couple of years ago with a 10-year “no hassle” warranty. The only problem was that the consumer was responsible for packing up the mattress AND paying all shipping charges back to Dalton, Ga. Also, the mattress had to be returned in its original shipping container with all packaging. All this makes the “no hassle” warranty a lot of hassle and very expensive.
The mattress contract also specified that in the event of a lawsuit, any litigation could only be filed in a court in Dalton, Ga. In other words, as the consumer, you would be forced to hire a lawyer licensed in Georgia and file your case in Dalton. This makes it almost impossible to sue the seller of the mattress.
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One more item before we leave this subject: NEVER play lawyer and write your own contract. There’s a reason attorneys go to law school for three years and are required to pass the state bar exam. Also you should know that any ambiguities (areas that are not clear) are usually held against the party that wrote the contract.
Now let’s go over some basics. Always get a copy of the contract to read carefully BEFORE taking delivery of goods or before a service is rendered. When I say read carefully, I mean understand what the terms of the contract obligate you to. If you don’t understand it — DON’T SIGN IT! No exceptions. If the other party tells you anything like “it’s just boilerplate” or “it’s just standard contract language” or “our lawyers make us put that in there” — once again, DON’T SIGN IT!
Rather than go into many of the most common terms in contracts that you need to know, I’m posting a list of terms and definitions on my blog at: www.cdapressconsumerguy.com.
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REMEMBER: If anyone asks you to purchase gift cards to pay a debt or send money — IT’S A SCAM! Don’t do it.
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I have many more interesting cases that I’m working on as The CDA Press Consumer Guy. Call me at (208) 449-7222, email me at CDAPressConsumerGuy @gmail.com or fax me at (866) 362-9266. Also include your full name and a phone number. I am available to speak about consumerism to schools, and local and civic groups.
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Bill Brooks is the CDA Press Consumer Guy. He is an active Associate Real Estate Broker for Tomlinson-Sotheby’s International Realty in Coeur d’Alene.