Door-to-Door Sales: Protect Yourself from Fraud
If you are home during the day, you are more likely to meet door-to-door salespersons. While some door-to-door salespersons are honest, the chances are excellent that whoever answers the door is about to be ripped off.
The salesperson may be selling home improvements such as siding and storm windows, funeral contracts, living trusts, magazines, or kitchen equipment. They could offer to clean your gutters, check your chimney, or fix your steps. Be careful. You'll be glad you made the decision not to let them in.
Door-to-door con artists - male or female - are charming and friendly. Their smiles are inviting. They are successful because they seem so honest.
Door-to-door con artists often:
- Greet you by name to seem friendly. (They may have seen your name on your mail or in a city directory.)
- Use tricks to get into your home. They might say they are from a utility company and need to test your water or electricity or that they are looking for an address in the neighborhood. Don't let a creative story relax your caution on whom you let in your home.
- Come up to you while you are outside your home so you can't close the door on them.
- Want cash. If they say they'll take a check, it will probably only be when banks are open so they can cash it right away, before you have a chance to change your mind or try to stop payment on the check.
- Play on your sympathy, saying that you are letting down your family if you don't buy, or that the salesperson's own family will go hungry if you don't make the purchase.
- Say they are working in your neighborhood but can't give you names of past customers.
Protect Yourself
For your own safety, don't allow anyone you don't know into your home. It is okay to tell someone they cannot come in. It's easier to close the door on them before they get in than to get them out once they are inside. Good ways to tell them to leave are to ask for written material, tell them you want check with your family, or just say you are not making a decision right now.
If you are tempted by the pitch, always ask to see the salesperson's credentials. Many communities require door-to-door salespersons to have a permit. Look up the phone number for your local business permit office yourself and call to check the permit. (Look under City Government in the blue pages.) Using a number the con artist gives you, may connect you to the salesperson's friend.
Investigate Both the Seller and the Offer
Take your time making a decision. Never buy right away. Tell the salesperson you will get back in touch after you have had a chance to read all the material given to you. This gives you time to compare store prices and to check the Better Business Bureau or consumer affairs office about the company. Read the information carefully to be sure you know what the quoted price includes. Are there extra charges for shipping or installation? How can you get a refund?
If You Decide to Buy
- Be certain you understand all terms of the contract. Make sure the contract is complete, signed and dated.
- Don't rely on verbal promises. Every promise the salesperson makes must be in writing or you can't hold them to it.
- Never sign a contract with blank spaces. Cross out any blanks.
- Get all terms of the sale in writing, including the total price, warranties, return policy, financing, and all conditions of sale.
- Be sure you have a street address (not a post office box number) and phone number so you can get in touch with the company.
How to Get Out of the Deal
If you change your mind within three business days, you can get out of a door to door sales contract and receive a full refund. This is called the cooling-off period. Along with your contract or receipt, you should be given two copies of a cancellation form that you need to sign, date and mail. You don't have to have any reason for canceling.
The Federal Trade Commission's Cooling Off Rule applies only to sales of $25 or more made in person at your home or at temporary facilities such as hotel rooms, convention centers, fairgrounds and restaurants. It applies even if you invite the salesperson to come to your home. Your right to cancel for a full refund is until midnight of the third business day after the sale.
The Cooling Off Rule does not apply to car sales, purchases from a store, mail or phone orders, purchases for emergencies, or arts and crafts sold at fairs or schools.
To cancel:
- Sign, date, and mail one copy of the "Notice of Cancellation" form to the address on the form.
- Make sure the envelope is post-marked before midnight of the third business day after the sale. (Saturday is a business day.)
- Send the form by certified mail so you have proof of mailing and receipt (or hand deliver the form.)
- Keep the other copy of the cancellation form along with your contract or receipt.
If you didn't get a cancellation form, write a letter. Because the seller broke the law by not giving you a cancellation form, you have extra time to cancel. You still must cancel in writing. The sooner you do this, the better.
After You Cancel
After you cancel, the seller has ten days to refund your money and return any note you may have signed about financing the sale.
Sellers must tell you within ten days whether they will pick up the goods they have already provided or let you keep them. They cannot require you to send the product back.
If You Have a Problem
There are several agencies that can help.
Contact the Federal Trade Commission,
- by toll-free phone at 1-877-FTC-HELP, or TDD at 1-202-326-2502
- by mail at
FTC
CRC-240
Washington, DC 20580 - using an online complaint form
Call your local consumer protection office. Some state laws give you more protection than the FTC Cooling Off Rule, and some consumer offices can help you resolve your complaint.
Contact the Better Business Bureau so they know of your complaints about the company. You can find your local office at the BBB Web site.
If you used a credit card to pay for your purchase, notify the credit card company that you want to dispute the charge Under the federal Fair Credit Billing Act, the credit card company must investigate your claim.
Additional Resources
Choosing a Home Improvement Contractor
Know how to spot the fraudulent home improvement contractor who comes to your door announcing, "I was just in your neighborhood and I have a great deal just for you!"
FTC has excellent consumer information on many topics, including how to protect yourself from fraudulent door-to-door salespersons.
You can file a complaint against a company online, find your closest BBB office, and get more information on ways to avoid being ripped off.
