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The Case of the Renovation Rip-Off |
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Fraud Prevention Month Case #2: Bill lives alone. He likes people and they like him. One day, he had a knock at his door. He opened it to find two men standing there. They were in his area doing renovation work for one of his neighbours. Did he have any work he wanted done at a great price?
Before Bill knew it, he had signed a contract to have an attached sundeck built at a cost of $15,000.00. He gave the men a personal cheque for the full amount, which they cashed at his bank the same day. Bill then waited for his sundeck to be built…and waited and waited and waited. He kept calling the men wondering when they were going to build his sundeck. One of the men finally showed up several weeks later, spent two hours on the job nailing a few boards in place, and that was the last Bill ever saw or heard of the men.
WHAT WOULD YOU DO?
Consumer Protection BC took on this case and was successful in helping Bill obtain a full refund and charges were brought against both men for fraud.
Under the Business Practice and Consumer Protection Act, the above contract qualifies as a direct sales contract because it was entered into at a place other than the supplier’s permanent place of business. Door-to-door sales are examples of direct sales contracts. With such contracts, you have a number of cancellation options. You can cancel a direct sales contract within 10 days of receiving the contract. You do not need a reason to cancel. This is known as the “cooling off period”. You can also cancel the contract after 10 days, but only under certain conditions. Visit our website at www.consumerprotectionbc.ca (under Consumer Contracts) to learn more about direct sales contracts and your cancellation rights.
TIPS: Bill learned a valuable lesson. Before he buys, he checks out the company with the Consumer Protection BC and his local Better Business Bureau. He does not allow himself to be pressured into buying. He comparison shops. He reads the contract carefully, including the fine print. He does not give all the money up front. He ensures he receives a copy of the contract and a signed receipt. He ensures that the contract specifies when the work is to begin and the date it is to be completed. In short, Bill learned to be a smarter shopper.
March is Fraud Prevention Month - know your rights! If you have questions about your rights and responsibilities as a consumer in British Columbia, please contact us toll free at 1-888-564-9963 or
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. Find out more information about direct sales contracts in BC. The “What Would You Do?” columns are presented by Consumer Protection BC to raise consumer awareness during Fraud Prevention Month.
Visit Consumer Protection BC at the 2010 Smart Shoppers event on March 27, 2010 at Metrotown Mall in Burnaby, hosted by the Better Business Bureau. How much do you know about Fraud? Take the Competition Bureau's Fraud Quiz.
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