NetNews Usenet Archive 1992 #18/NN_1992_18.iso/spool/misc/consumer/15150

Text File | 1992-08-13 | 7.4 KB | 136 lines

Newsgroups: misc.consumers
Path: sparky!uunet!paladin.american.edu!darwin.sura.net!jvnc.net!princeton!phoenix.Princeton.EDU!roger
From: [e-mail] (Roger Lustig)
Subject: Re: Problems making a purchase from a small business - request advice
Message-ID: <[e-mail]>
Originator: news@nimaster
Keywords: restocking fee, threats, credit bureau
Sender: [e-mail] (USENET News System)
Nntp-Posting-Host: phoenix.princeton.edu
Organization: Princeton University
References: <[e-mail]>
Date: Thu, 13 Aug 1992 14:30:51 GMT
Lines: 121

In article <[e-mail]>
[e-mail] (Anne A. Heller) writes:

>I am facing a potential dispute with a local business which sells small
>computer systems.  I am appealing to anyone who has had a similar experience

>My husband, Jeff, needs a 486-based PC.  He wanted to purchase it from a local
>business in hopes of getting good support quickly and easily in case of
>hardware problems, upgrades, etc.  He spoke with the owner of a local
>business which sells and services PCs.  He got what he felt was a reasonable
>quote for the system configuration he needs (part of which was a 1 Meg SVGA
>video card).  Jeff and the business owner verbally agreed on the system
>configuration, price, and date the system would be ready.  The owner then
>wrote a spec sheet for the system.  (Nothing was signed, no deposit given.)

This is crucial.

>Our original plan was to finance the computer with a loan from our credit
>union (the business owner knew this).  Now, the "misunderstandings".

>As I was looking over the spec sheet Jeff brought home, I noticed that a
>512K video card was indicated (as opposed to the 1 Meg that had been agreed
>upon).  Jeff spoke with the shop owner the next day who assured him
>that it would be a 1 Meg card.  This made us feel a little uncomfortable,
>but we thought we could check the part before accepting the system.  We
>received pre-approval for a loan for the computer, but then found that the
>current interest rate on our MasterCard
>was less than the fixed rate for a loan
>would be (go figure :-).  The business displayed VISA/MC signs, so we decided
>to opt for this form of financing.  My husband stopped in the shop the day
>before the computer was to be ready to check on the status.  The owner said
>that everything but the uninterruptable power supply (UPS, external to the
>system) had arrived, and burn-in was being performed.  My husband mentioned
>that we were going to use our MasterCard to pay for the system, the owner
>said that would be fine.  The next day, my husband called to ask if the system
>was ready.  The owner told him that the system was ready, but the UPS was
>delayed and would not arrive until the following day.  Jeff told him that he
>would wait to pick everything up the next day.  Later in the day, Jeff decided
>he would like to pick up the computer after all.  He called the shop and spoke
>with the owner's son.  The son told him that his system was not ready.  Jeff
>explained that he spoke with the owner earlier who said that his system was
>ready.  The son said his father is wrong, must have mistaken another system
>for Jeff's, it was not ready.  This made Jeff feel uncomfortable about the
>business once again.  Finally, the following day Jeff went by the shop to
>pick up the system.  The system was loaded in our truck before Jeff, while
>preparing to pay, looked over the invoice, and saw an additional $50.00 charge
>with no explanation.  The owner is not present and his son cannot explain the
>charge.  The son took a guess that it might be an additional charge for the
>1 Meg video card (which would be a ludicrous amount).  Jeff, having had enough
>of their nonsense, unloaded the system and told the son he was no longer
>interested in purchasing a computer from them.

Good move--but perhaps a bit drastic at that point.  Why not just refuse
to take delivery until Dad is there?

>The following day, the owner of the shop called me at work to ask what the
>problem was.

OK, not *too* drastic.  8-)

>I told him that we felt uncomfortable about the way they do
>business and the unexplained $50.00 charge was the final straw.  The owner
>explained that the charge was for using MasterCard to pay for the system.
>I told him that an additional charge for using a credit card had never been
>mentioned and was not acceptable to us.  He said he would delete that
>charge.  I told him I would pass that information along to Jeff, who would
>get back with him.  Jeff was pretty unhappy with the shop by now, and felt
>that the original reason for buying from a local merchant (good service) was
>now moot.

I generally consider "good service" wrt a computer to be on-time
delivery and timely repair, but OK.  I can see why you don't want to
trust these folks with repairs later.

>He called the owner back to explain the reasons for his
>dissatisfaction and let him know we would not be purchasing the computer from
>him.  The owner told Jeff that if we did not purchase the computer, he would
>bill us for a 15% restocking fee (a "restocking fee" had never been mentioned
>or indicated in any way until this point!) and would turn the bill over to a
>collection agency if unpaid which would eventually
>report us to a credit bureau.

>I imagine the restocking fee/threat to report us to a credit bureau was meant
>to intimidate us into buying the computer.  Although his threat upsets me, we
>are in no way going to be intimidated in such a manner.  I wouldn't dream of
>entering a business transaction with his shop at this point!  My question is,
>is it legal for him to do this, considering no previous indication of a
>"restocking fee" had been given?

No, of course not.  You had nothing in writing; no contract, and no
delivery of the goods.  Just like the credit card penalty, this fee is
wishful thinking on the owner's part.  Unless that spec sheet or a
contract says "all prices cash only" or the like, there's no way they
can charge for the credit card.  (OK, if you did business together under
a big sign that says that, the way they have one at the local liquor
store wrt their specials, that's similar.)  Likewise, the restocking fee
is his problem if he didn't tell you about it beforehand.

>What would be our recourse?  I have read the
>FAQ and know that we could dispute such information in our credit report, but
>it still makes me angry that this guy could potentially cause problems for us.

Fight fire with fire.  Notify the guy *immediately* that you need a
letter from him saying that you owe nothing, and that no restocking fee
will be charged.  Make this request in writing.

If he sends you an invoice, take what you've written here, add it to a
photocopy of the spec sheet and all literature you received from the
guy, and send it to the local Better Business Bureau, the local Consumer
Bureau, and MasterCard and Visa besides, if it turns out that he's
adding fees.  Most important: send HIM copies of the letters you sent
out.

If he even mentions the credit reporting agencies again (you *have*
gotten your reports recently, haven't you?  They're free--see the FAQ
for details), retain a lawyer.  At this point you might win a defamation
of character suit.  Not that you'll have to; just a note from your
lawyer will stop him dead in his tracks.  By then, of course, he may be
hurting for business, if the previous letters have their effect.

Roger