Winsett: Heavy door-to-door sales cause concern

Q: My neighborhood is experiencing high activity of door-to-door sales this summer. What advice does the BBB have for considering door-to-door sales?

A: Great question and very timely; this market area is experiencing a high level of door-to-door sales activity this summer. The BBB advises to be wary and cautious with any door-to-door salesperson. However, we will discuss two types of sales activity where the BBB is receiving a high level of inquiry and concern; they are a roofing contractor and magazine subscription sales.

The Chattanooga BBB serving Southeast Tennessee and Northwest Georgia is experiencing multiple inquiry calls on a roofing company moving through this area. As results of the many storms we have experienced in the past few months, representatives of this business are making door-to-door solicitations in those neighborhoods. The approach by the salesperson is that the homeowner has a damaged roof and the company will work with the owner’s insurance company and secure a new roof. The firm is telling homeowners that it is an accredited business meeting the standards of the Better Business Bureau membership. It is not a BBB accredited business and today has an “F” rating by the BBB.

BBB advises that a legitimate roofing company should be able to provide: 1) business license, 2) local references and roofing testimonials, 3) roofing certifications and credentials, 4) workers compensation insurance, 5) general liability insurance, and 6) written manufacturer’s warranties.

If you are considering a new roof, BBB suggest you follow these guidelines:

1) Deal only with licensed and insured contractors. Note: In this area, roofing businesses from Georgia do not have the same license requirements as Tennessee. However, if they solicit work in Tennessee, they are required to obtain appropriate licenses.

2) Check the business BBB Reliability Report, go to www.chattanooga.bbb.org, or telephone 423-266-6144 for a verbal report.

3) Get recommendations from family, friends, neighbors, insurance agents or claim adjusters.

4) Secure multiple written estimates on the job requirement.

5) Take your time signing a contract. Make sure all details and promises are written into the contract. If possible have an attorney review the contract.

6) Do not pay for services up-front. A deposit of one-third is the standard procedure for a new roof. Do not pay cash.

7) The National Weather Service can verify if there was a storm or hailstorm in your area on a given day.

8) If pressured to make a same-day commitment, end the conversation and close the door to that salesperson.

Additionally, the BBB warns that door-to-door magazine sales crews are in neighborhoods locally and looking to earn a quick dollar. Each summer BBB received numerous complaints on magazine salespeople going door to door.

These companies typically employ crews of high school and college-age people who are trying to earn money over the summer. Most are not licensed to work in the area. In the sales pitch, the representatives may explain that they are working to get their lives back on track, raising money on behalf of a charity or for a school trip, or even support our troops in Iraq and Afghanistan.

Because sales representatives are typically high school or college age, consumers readily believe the potentially fictitious sales pitch and often pay several hundred dollars for the subscriptions. When complaints are filed with the BBB, the victims allege that sales reps took their check and the magazine never arrives. Reports also indicate that high pressure and misleading sales tactics are used to make a sale.

BBB offers the following advice to avoid getting scammed by a door-to-door magazine sales rep:

1) Always research the company with your Better Business Bureau for free at www.bbb.org before filling out a check for a magazine subscription.

2) The Federal Trade Commission’s Three-Day Cooling-Off Rule gives the customer three days to cancel purchases over $25 that are made in their home or at a location that is not the seller’s permanent place of business. Along with a receipt, salespeople should also include a completed cancellation form that customers can send to the company to cancel the agreement. By law, the company must give customers a refund within 10 days of receiving the cancellation notice.

3) Victims of fraudulent magazine sales can file a complaint with their Better Business Bureau at www.bbb.org, local law enforcement and state Attorney General offices.

4) Experience tells us that customers are not the only victims of these scam activities; the young salesperson also is potentially being taken advantage of by an employer and forced to work long hours, endure substandard living conditions and have wages withheld.

Be advised, there are many legitimate and licensed businesses who often solicit door-to-door. However, as a consumer and if you have interest in the product or service, take the time to educate yourself on the item and check out the business reliability report at the BBB. Start with Trust.

Get answers to your questions each Friday from Jim Winsett, president and CEO of the Better Business Bureau Inc., which serves Southeast Tennessee and Northwest Georgia. Submit questions to his attention by writing to Business Editor John Vass Jr., Chattanooga Times Free Press, P.O. Box 1447, Chattanooga, TN 37401-1447, or by e-mailing him at jvass@timesfreepress.com.