Consumer Services

Let us out!

During the approval process, the H’s determined that they would not be able to afford the monthly loan payment plus taxes and insurance. The H’s contacted the builder to cancel the contract and obtain a refund of their deposit.

The builder agreed to cancel the contract but declined their request to refund the deposit. The builder indicated that the contract obligated the H’s to surrender the refund if they cancelled the contract. The contract specifically identified “failure to qualify for financing” as the only circumstance for the return of their deposit. Feeling like they were locked-in, the H’s contacted the Miami-Dade County Consumer Services Department Mediation Center (The Mediation Center) to get them out.

The Mediation Center contacted the builder and was referred to the builder’s attorney. The builder’s attorney indicated that the H’s were responsible for the deposit as they had qualified for financing. The Mediation Center requested that the builder’s attorney provide proof of qualification for financing as the H’s indicated that they were not aware of final approval. A few days later, the builder’s attorney e-mailed the Mediation Center indicating that the H’s $5,000 deposit would be returned. The H’s were glad to get out.

There are pros and cons of arranging mortgage financing through a builder's affiliated lender(s).

When you visit sales offices, you’ll likely be offered a mortgage from the builder’s “approved” or “preferred” lenders.

Be aware that builders are not consumer advocates who go looking for the best mortgage deal for you. These lenders are “approved” and “preferred” because they have a business relationship with the builder. If you choose a mortgage from one of these financing companies or “affiliated lenders,” the builder or its parent corporation typically makes money twice: first by selling you a home, and again by selling you a mortgage.

That’s not necessarily a bad thing. The important question, however, is whether you come out ahead.

Regardless of what lender you choose, make sure that you are thoroughly familiar with the terms of the purchase contract and financing before signing. In the case above, the H’s could have lost their deposit if the builder could have proven that they had qualified for financing. 

Incarceration---Communication

Mr. B disputed the charges. However, the phone company indicated that as far as they were concerned the charges were valid and Mr. B would have to resolve the issue with the third party billing company. Mr. B continued paying his regular phone bill less the amount associated with the allegedly fraudulent collect calls. The phone company disconnected his phone service for lack of payment. Feeling like he was getting a bum rap, Mr. B contacted the Mediation Center seeking clemency.

The Mediation Center contacted the phone company on Mr. B’s behalf. The phone company reiterated that the according to them the charges were valid and that the issue had to be taken up with the third party billing company.

The Mediation Center contacted the third party billing company regarding the issue. The third party billing company indicated that it appeared that Mr. B had authorized the charges. Mr. B recalled that he had received a phone call from a correctional facility some time ago but hung up after following the instructions provided by the caller.

The Mediation Center contacted the Florida Public Service Commission for assistance with the issue. As a result of the collaborative effort Mr. B’s phone service was restored and his account was credited for the $1,500 worth of collect calls. Mr. B was grateful for being sprung from this obligation.

A regular scam perpetrated by inmates is randomly calling unsuspecting individuals and using the individuals’ home phone numbers to make long distance calls. It starts when the inmate gets an individual to accept a collect call and then gives a sob story. The inmate convinces the individual to dial *72 and then a telephone number. The inmate then instructs the individual to hang up.

 What many people don’t realize is that *72 is the code that initiates call forwarding on your phone. It not only forwards the call you’re on at the time, but will continue to forward all calls that come to your home after that, even to long distance numbers.

Telephone bills can be confusing. To help make sure that you do not pay for charges or services you did not authorize, order or need, it is recommended that you take some time to carefully review the charges on your telephone bill.

 Check your bill every month, and do not hesitate to ask for an explanation for any charges you do not recognize or understand. If you have questions about telephone charges, contact your telephone company.

 As far as calls from correctional facilities go, if you are not expecting a call from someone in a correctional facility, hang up the phone before speaking to anyone.

Mediation Results

The mediation of disputes, between consumers and businesses, often-times results in the parties agreeing to some sort of monetarily measurable adjustments such as full refunds, partial refunds, or services being provided at no additional cost.  Below is a sampling of the various types of situations and resolutions that were mediated during this quarter.

• A consumer paid in advance for a series of medical treatments. The consumer received seven (7) of the forty (40) scheduled treatments but decided against continuing with the treatment regimen. The Mediation Center was able to negotiate a $1,527 refund for the treatments that the consumer did not receive.
• A consumer put down a $4,000 down payment toward the purchase of a new car. After two month’s, the dealer notified the consumer that she had not qualified for financing. The dealer instructed the consumer to return the car and that she would be charged on a prorated “rental” rate for use of the car. The “rental charges” would be subtracted from the $4,000 deposit. The Mediation Center was able to mediate the waiver of any “rental charges” and the transfer of the full deposit toward the purchase of a less expensive vehicle for which she qualified for financing.
• After paying $4,500 to an architect for house plans, a consumer decided that he no longer interested in designing and building his own home. The consumer requested that the architect return the $4,000 deposit. The architect indicated that the deposit was non-refundable and that she had already spent time working on the plans. The Mediation Center was able to mediate a $3,900 refund payable in three monthly installments of $1,300 each.
• The complete electrical system(s) of a consumer’s one-year-old vehicle failed. The consumer took his vehicle to the dealership from which it was purchased for warranty repairs. The dealership denied the warranty claim as they believed that the vehicle had been struck by lightning. The consumer filed a damage claim with his auto insurance provider. The claim was denied as the insurance company determined that the electrical system failure was a manufacturer’s defect. After a field investigation, the Mediation Center was able get the insurance provider to cover all of the related repairs valued at over $6,400.
• A consumer purchased $12,000 worth of furniture from a local furniture retailer. Before the furniture was delivered, the furniture retailer went out of business. The Mediation Center was able to locate the business owner and negotiate the delivery of the consumer’s furniture through a third party delivery service.

The Mediation Center assists with a variety of different types of complaints. If you have a complaint, problem or need information, attempt to work it out directly with the firm or individual involved. If you are unable to resolve the issue, contact the Mediation Center at (305)375-3677 or submit a complaint online at www.miamidade.gov/csd.