Heating/Air Conditioning Rip Offs

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whirlcool

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Jun 29, 2005
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Just North Of Houston, Texas
This is long... sorry

Some friends of ours always have their heating/air conditioning system maintained twice per year by their favorite A/C Heating company. They have a very large house, zoned into four sections.

When we were over there visiting they mentioned that every single time they have this company out to inspect their systems they have to have something replaced or repaired and the bill is never less than $2,000. Last time it was their ductwork was bad and needed immediate replacing at a cost of $13,000. They wanted to know if we have the same kind of costs. I told them of course not, but remember those "We'll check your furnace for $49.95" are usually a come on just to get a tech inside your home so they can "find" things wrong and charge you out the you know what.

So I told them to try the company that did our American Standard system as I know they were reputable. So they called this place and scheduled an appointment. The guy's wife called yesterday morning to say that her husband couldn't be home, but could I come over to help her deal with the tech. I said sure! So I go over there.

So I get over there, the tech comes in and introduces himself and sets about inspecting the four furnaces and a/c units. After about an hour he comes back and tells the lady of the house that she has "some serious issues to take care of".
I asked him what are the issues. He comes up with a laundry list.

1. The gas valve on two furnaces are bad and need IMMEDIATE replacement. He said he is legally obliged to turn off the gas supply to the house because they are bad.
I asked him if they are leaking, he said "No, they are just bad". I asked "how are they bad?" He said that he felt they were slow in reacting to the circuit board in the furnace and COULD stick open, flooding the house with raw gas. I know gas valves are designed that when they fail, they fail closed. I smelled a rip off in progress. I asked him "Did you try to see if they work?" He said "Yes, and the furnace did not light". He also said the spark ignitors were bad. I asked if they sparked and he said that the tips were "discolored, which means they are bad". He then gave a price quote of $1,800 for two gas valves and two ignitors. And when he handed the lady of the house the estimate he said "I sure do hope you get this fixed, I wouldn't want you to have any nasty accidents!" He said he was then going to turn off the gas to the house which would leave the homeowners without a stove, hot water or anything else. But I told him I'd rather have him stand by while I call the fire department and they would check for leaks and if they found a leak then he could turn the gas off. He said he didn't have time to wait and left. The friend of ours told the tech she'd have to discuss it with her husband that night.

Now the furnaces we are talking about are Carrier brand, and they are five years old. After the tech left, I told her I think he was trying to rip them off and that they should get a second opinion before spending any money. I told them I felt the product the guy was selling was fear and how much money would you be willing to spend to alleviate that?

So this morning the woman calls me and asks me to come by again. She called the same company back and said one of the owners of the firm is going to come by and
double check the techs work at no charge to her. She asked me to come over and monitor what they were doing.

I got there a few minutes before the owner of the A/C company got there. I went with him furnace by furnace and watched what he was doing as he checked them out. He even used a "sniffer" to check for gas leaks. When he got to the next to the last furnace it wouldn't fire up. He said "See, it has a bad gas valve". I pointed to the red power wire that had been disconnected from the gas valve and told him "If you connect that wire I'll bet it will work!". He did connect it and the furnace fired right up. He then put a meter on the gas valve and told me "Look, it's getting 24.5V of electricity. That's only supposed to be 24V, so it's bad.
I told him that the 24V comes from a transformer and even though it's rated at 24V 23-25V is considered acceptable as the decal on the gas valve said 23-30V. So I caught him. When he tested these furnaces he cycled them 5 or 6 times each. They all started each and every time. He then reminded me that just because they work in the summer doesn't mean they'll work in the winter. I told him we'll cross that bridge when we come to it. Afterwards we all met downstairs in the kitchen at the table and had a little pow wow.

I told him that the tech they sent the day before came there specifically to rip these people off for parts they don't need. And today I proved to him to his own satisfaction that there was nothing wrong with those systems. I also mentioned I was a customer of his company and I certainly don't appreciate the fear driven sales tactics they used on friends of mine. He then went into an explanation that the tech the day before must have been in a rush and didn't diagnose the system properly. Then he started in on the "what if's" such as "what if those gas valves stick open during the middle of the night on your friends, they'll have a fire!"
"What if the heat exchangers rust through and flood the house with carbon monoxide?" I told him I had enough of his what if's and told him "What if I open the front door and kick your sorry ass out of it?". You should have seen the look on his face! It was priceless. He promptly left.

I have seen quite a few of these kinds of companies behaving this way. They know that most homeowners do not know anything about a/c or heating and they COUNT on that fact to make a buck. Don't they realize that there are people out there who are on to them?
 
Sadly this happens A Lot!!!  Any type of repair service.

They should have went with their gut when they were in doubt!  Always get a second opinion when you are in Doubt!

Thank goodness there are still good people out there in the world that don't rip people off.

B
 
We were ripped off by a company in much the same way. Several years ago, we were getting ready to go on a week long vacation when the furnace decided to stop working, which would have ordinarily been no big deal, we used a gas fireplace for most of our heating anyway, but never left it on when we weren't home. So, said A/C /heating company was called. We waited while the tech "fixed" the furnace (Couldn't really watch him, it was in a small closet off of the laundry room). He finished and the furnace worked.... Sort of. It ran so rough and lit so aggressively, the noise would wake us up at night- it had never done that before. He had claimed to have replaced the draft inducer blower at a cost of several hundred $$$ and just happened to have the part with him... On closer inspection, he had cut and spliced nearly every wire in the thing, most likely disabling any and all safety features... The draft inducer was never replaced, it wasn't running fast enough to clear the gas out of the system, so the safety switches had cut it off... with the safety systems bypassed, it built up enough gas until it lit off with a mighty explosion, and then couldn't get the exhaust up the chimney fast enough, causing it to run rough. Later on, when it died completely, my Dad and I removed the draft inducer, lubed it and cleaned it properly, and it ran like new. That was the only repair that system had in the 13 years we lived in that house. We could have all been blown sky high, but little did they care, they got their money and ran. Tried later on to contact them about what was done, but they seemed to have lost our account info....
 
A carbon monoxide alarm in each bedroom is a lot cheaper than spending thousands to replace furnace parts that don't need replacing...

I ran into similar rip-offs by auto mechanics decades ago... since then I've done nearly all my own auto work.

The last time I hired someone to work on my house was to replace the water main and then extend the gas line to the laundry closet and cooktop.

Everything was ok but I had to switch the gas valves the guy installed, between the dryer and the cooktop. Then when I went down to the crawl space I sniffed a gas leak by the furnace down there. Sure enough, the gas valve he'd installed there was cracked and leaking. For less than $10 I got a new valve and installed it myself.
 
Glad you shared the story, Allen. And that you had the perfect squelch!

60 Minutes did a classic hidden camera expose of interstate service stations (when such things still existed). One of mechanics' favorite tricks was slicing the fan belt while the owner wasn't looking.
 


That was so good of you to "catch" this rip off for your friends.

Car Dealership Service do the same thing. I feel sorry for the women whose husband's have passed and they go to the dealership and are sold a bunch of service they don't need. It happened to me about 10 years ago at a Toyota Dealership.
They said my truck at the time needed $4000.00 worth of work. I had them document what it needed and then went to my private mechanic. He told me I only needed about $1200 worth of legitimate work done.

Needless to say I went back to Toyota, and told them they are a disgrace and will make sure all my friends know what they were trying to rip me off.

Good for you Allen. Thanks for watching out.
 
You figure they were honest with you because you 'knew something'?

This is why I watch them closely making it clear that I 'know something'. As a result I have never been cheated. Except of course by vendors of R22 in collusion with the federal government.

Anyone here need something worked on that you DON'T 'know something' about, ask first (time permitting) because there is almost always someone here who knows.
 
Hey, even though I know about how A/C & furnaces work this company STILL tried to rip these people off. They were there to make money at all costs, even though nothing was wrong. These friends of ours were so thankful they said that this weekend they want to take Karen & I to Morton's for a nice steak dinner! Now isn't that nice!

I've been down the appliance repair rip off path before. That's what got me here in the fist place in 2005. I now repair my own appliances thanks to the good people on this website.

And knowing your car and the maintenance schedule will save you money at the car dealers too. The BMW dealer was telling me how much danger I was in if I don't change the timing belt at 60,000 miles. If the timing belt goes, I could ruin my engine! I reminded him the manual says you don't change it until 100,000 miles. Saved myself $2,400 that time.

Knowledge is power. I have gotten so if anything needs a repair I can't do I research the hell out of it to make sure I understand what the problem is and what is the needed remedy and how to do it.

What I don't understand is how do you find a reputable company? I initially found this company on Angie's list. Their reviews were all golden when I used them back in 2012. But looking at their reviews again, 96% of them are still great but there are a few mixed in that complain about the same things I saw going on. Someone once told me that repair companies often give their employees "sales quotas", if they don't sell $XXX of repair services each month they are gone. Anyone else ever hear that?

I have learned that if you are dealing with a company and they start to pressure you to make a decision NOW! or start telling you the world will end if you don't take care of this IMMEDIATELY, well there is a good chance you are being ripped off. That's what made me suspicious of this company in the first place. I will admit it was nice of them to send one of the owners out after the woman complained to the company about the attempted rip off. And there was no charge for that second call either. In the end it turned out well, but the husband while thanking me said that he feels if I hadn't been there that they may be even talking about a new furnace now. $1,800 for two gas valves and two igniters is very expensive. It should have been closer to $800.00. He said he'll be there the next time they hire a company to look at their systems.
 
Having worked in the heating and AC field

In the 80s and 90s, for two VERY honest reputable guys, I learned just how much foolishness really went on...They told me that back in the 60s ,the Holland Furnace company ran the same type of scam...they got in your house to inspect your furnace...took it apart and then told you they had no choice but to replace it...they even got taken to task by Consumer Reports for this!One of the guys I worked for said he got a call from the local Esso dealers wife, asking him to come over right away, as two men were there saying her furnace needed replacing...having serviced it since new, he went right over, they tried to say that it had a crack in it...he promptly called the Better Business bureau and then told them if they ever did this to another customer of his he would see them prosecuted!,,,the old Esso oil furnace ran for many years after that with no problems.
 
Our at the time only 2 year old Maytag refrigerator had the evaporator fan motor go bad, without thinking much of it we had a repairman from the local store that sold it to us come out. He showed up, spent over an hour tearing it apart and quoted us 300 dollars for a new fan motor and that it would be a week to get it. We said thank you and showed him the door, called the appliance parts store and not only did they have the part but it was 25 bucks. I picked it up that day, had the new motor put in and had the fridge going again within 40 minutes.

That was the last time I had ever called for appliance service and never will again.

I service 5 different HVAC systems myself spread across our house, grandmothers house, and dads apartment building that has my mothers store on the first floor including a 100 yr old hot water heat system. The only thing I call out for is when there's a leak in refrigerant lines somewhere since I don't have all the tools or EPA cert for R22 and I use a reputable family run company for that, and when we need equipment replaced.

My neighbors across the street told me once that they had to get there A/C recharged every year because "it runs out". I was completely dumbfounded and tried to explain that they aren't supposed to have that recharged unless there's a leak and a leak is not supposed to happen. They thought this was perfectly normal...
 
Fortunately the people I helped do have carbon monoxide detection as part of the homes alarm system. There is a detector in most rooms.

Maybe next time we should set up a hidden camera and record what they are doing/saying. Then if they try to screw them over again just turn the tape over to the local investigative reporter on a local television station.. that would fix their wagon!
 
I wouldn't expect much blowback from saying that quackery/chicanery/piracy in enduser services rises in direct proportion to how little endusers understand the gizmos upon which they are 97% dependent.

And the number of ethical enduser service suppliers unwilling to capitalize upon ignorance is...... scant. I mean, if you can charge $300 for a $30 part-- or $6000 for a replacement system with nothing at all wrong with it-- whilst the customer is blissfully unaware, it's like "why not?".

Scandalous, considering most of these people go to church [rolleyes].
 
A/C recgarge

I laugh a little whenever I see the signs, usually near the beginning of summer, in front of the various gas/repair stations for a/c recharge. Don't drivers know that refrigerant doesn't "go bad?"

Chuck
 
The guy across the street from us runs his own heating/ac company. I asked him one time how much he charges to replace an a/c start capacitor. He said he charges $400. I told him I thought that was outrageus as the part can usually be had for $35.00 or less. His response? "The ones I get are of a higher quality than the ones that are generally available to the public". My response "Come on Bob, a capacitor is a capacitor is a capacitor. As long as it has the same specs as the original, you are good to go."

He's an American Standard dealer too. I am glad I heard this out of him before we bought our new system. He didn't get the job.
 
a local HVAC Co tried to sell our daughter

a new furnace blower motor for $900... she called me I said no, went over, tightend the drive belt, and it's been fine for over 5 yrs. Needless to say I tell everyone I know that they're rip-off artists, by name.
 
And that was the "reputable" company...?

Yes, I got them out of Angie's list where they had glowing reviews. I used them in 2012 and had no problems. So I recommended them to these friends of ours who was really ripped for the past several years by their own a/c heating company. It seemed every year they were replacing a furnace, an a/c unit or something. Nothing ever failed but their a/c company kept saying "parts are marginal and they could fail at ANY MOMENT!"

Now these friends of ours live in a very nice very upscale gated community. Their house is probably 6,000 sq ft or more. I think the guy that came out smelled money and wanted some of it. But I got the best of them when one of the owners showed up (if that's who he really was). He was trying to make sure money would be spent on a system that was in perfect working order. But I blocked him at every step he took.

And THAT's what pissed me off. The fact is you are more likely to get a rip off artist come to your house for a/c & heating repairs than you are to get an honest guy. And that sucks big time!

Like I said in one of my previous posts, these companies are selling fear with their "What if's" reasons. What if your furnace explodes? What if you have a heat exchanger crack, what if... etc, etc, etc. Mark of a rip off artist. Especially when coupled with the "and you MUST REPLACE IT NOW!"
 
I had year round contracts with the biggest heating oil company in this area for oil when I owned apartment houses. Plus have them maintain the heating systems 24/7 for a pretty penny for their protection plan. One boiler burner needed a new transformer just after Thanksgiving, covered, no problem. Less than a month later that transformer failed, too bad, so sad, the top plan only covers one of the same part a year if its defective or not and they immediately sent me a bill. Christmas Eve I went into their offices and demanded to settle all the accounts out and close it. They finally found a person that could sign the check to me. Next place I did business with was very good and reasonable. They spent half a day on each unit on the once a year service where the other one spent less than an hour. I now buy oil in bulk once a year from an old employer in HS and have a great trusted independent maintanance person. Glad I dont have any rentals now, not worth the headaches. Another giant has bought all of those big ones out and unfortunately I ended up with them for propane now because they own my tank.
 
When we built our house, the GC chose an out-of-town company that we'd never heard of to install the HVAC. Six months later all three systems (one for each floor) needed charging. Why? The installers had taken the caps off of all the Schrader valves, hoping to generate a service call. Fortunately, I knew the guy who had helped the city set up its licensing many years ago. He was semi-retired but he told me that he'd work on our systems "as long as I don't have to get into the attic". (He didn't; two of our indoor units are in a utility room, and the third is in an upstairs closet.) He maintained my systems for several years, but a couple of years he retired completely and moved away. I found another company through Angie's List and so far I've had pretty good luck with them. But like Gusherb said, I generally only call for things involving refrigerant; most other stuff I do myself.

I've seen some ripoff artists too. We used to live in a house with a gas-pak system. Once the controller went daft and wouldn't proceed past the draft-fan stage. I called several companies and most of them just took a cursory look and then decreed that the unit (about ten years old) was shot and needed to be replaced. One guy literally said "You need a new unit" as he was getting out of his truck! A minute later, he was getting back into the truck. A couple of others replaced the controller module but still couldn't get the gas valve to open, and of course they wanted to replace the gas valve, and of course they wanted a lot of money to do that.

I finally found someone who was diligent. He took the replacement controller module back to his shop and set up a test rig to try to figure out why it didn't work. It turned out to be a jumper setting. There was an error in the manufacturer's instruction sheet and he called the manufacturer and got it straightened out. Unfortunately he's since retired too.

When I was looking for a new company, I had one guy come here with a rigged CO detector. He saw the propane tank at the side of the house and just assumed. He pointed his CO detector at a register and said, "This is a dangerous CO level. Your heat exchanger is cracked. You need to replace the system." Dude, you don't get CO from a heat pump, LOL. Needless to say he was shown the door. I called the BBB but they are useless here.

Another thing I've run into is that if you have home automation thermostats, they will try to blame whatever your problem is on the thermostat, and that they can replace it with a "factory approved" one for a mere $500 or so. "If your thermostat causes damage to the system, that's not covered under the warranty." What a bunch of bull. Around here there are definitely more incompetent and dishonest tradespeople than there are good ones.
 
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