Troubleshooter: No Pay

November 3, 2008 3:39:06 PM PST
Something different, a business looking for help. The owner says he lived up to his part of the deal but still didn't get paid. Ron Tolbert owns Cozy Bear Heating and Air. He says he works hard to make sure his customers are taken care of. He adds, "We pride ourselves in going out and completing the job." Ron has a contract with a home warranty company, First American Home Buyers Protection. They call him, when one of their customers need a repair. She says, "It's not like we're going out and freewheeling it and just billing them a whole lot. They have to actually authorize it. So they were authorizing repair and we have customer's signature."

Ron says he does the work, and First American pays him for his services. He tells Troubleshooter Diane Wilson, "After the first 30 days we really weren't getting paid like literally anything. I had at one time $10,000 on my books on accounts receivable and I'm telling my office manager where's my money." Ron says it took about 60 days and First American paid the majority of the bills, but he was still missing $1,200. Ron adds, "$1,200 doesn't seem like a lot of money but the way the economy is now it's rough."

Ron says his office manager reached out to First American several times. He says, "They're not responding. They don't respond to e-mails, they don't respond to us calling. We want our money we performed our services." The office manager of Cozy Bear e-mailed Troubleshooter Diane Wilson and she got in touch with First American. Within the week, Cozy Bear got a check from First American for the outstanding bills of $1,200.

A rep for First American Home Buyers Protection said in this case, the contractor did not obtain prior authorization and was billing at a rate that was beyond what was agreed upon in the contract. She goes on to say this contractor was indeed paid for his work according to the agreed upon rates.


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