SCAMS BULLETIN Host Jay White is a volunteer attorney who provides free legal services for low income seniors in San Mateo County, California.

November 17, 2019.

PESKY FINE PRINT  

Contract Small Print Gotchas!

We have all been there. Contracts are full of fine print that is tedious to read and can cost you big bucks. Buried within the language are many legal words and phrases that should serve as a red flag to potential hassles or rip-offs.

 Here’s a list of common phrases in contracts and service agreements that you should look for before signing any paper or sending money.

1. “Free” — Rarely is anything free. If you aren’t paying for the product, you likely are the scammer’s product — your information may be sold to advertisers who will barrage you with online solicitations. Or, you may be committing to pay later.

2. “Free trial” It’s often accompanied by phrases like “We will not charge your credit card [until 30 days from now].” This enters you into a game of “Will you remember to cancel on the 29th day?”

3. “Six months Introductory Price.” This is a variation of the free trial game. For example, $39 a month for cable TV sounds good to you in January, but if it’s increased to $137 per month by August because you did not remember to cancel in July, is that a good deal?

4. “Automatically Renews” Such clauses mean you keep paying even if you don’t realize it or want the service anymore. Sure, if you want the convenience of automatic renewal, it can work for you. But beware if such an arrangement is tucked in the fine print without your knowledge.

5. “Fees” Compare late payment fees and other penalty charges when shopping. The cost of such a mistake shouldn’t be unreasonable.

6.”Restocking Fee” Sales folks will talk you into taking a product home to try it and promise that you can bring it back for a refund. But restocking fees can be steep — 15 percent for electronics, for example.

7. “Extended Warranty”. Consumers can find extended warranty costs snuck into monthly payments. The value of such warranties is debatable, but consumers should always be fully informed about the cost.

8. “Not Covered”. Many warranties are full of exclusions that can lead to disappointment. For example, in cars, “wear” parts like brake pads usually aren’t covered.

9. “Void the Warranty”. Sometimes, warranties become useless if consumers break terms that make them “void,” such as getting an electronic gadget wet.

Legal loopholes:

10. “Mandatory Arbitration”. If a product injures you or you feel misled, you can’t sue in a court of law; you must submit to arbitration.

11. “Limitations for Suit”. This may shorten your window for potential lawsuits.  Check terms and conditions to understand any abbreviation of time period.

12. “Hold Harmless and Indemnify”. Watch out for this. These words can give corporations the potential to force a consumer (or worker) to pay the company’s legal fees in the case of a lawsuit.

Attb: AARP                              #