How would you handle this crazy AC situation?

[scrappyhappymama]

We own a home about 2 hours away from where we currently live. We've only owned it for a few years, so when we moved away for DH's new job opportunity, we were in no position to sell the home yet. So we've rented it out and are fortunate to have wonderful tenants. It is a nice home and had been remodeled by the previous owners, so we are committed to keeping the home in as good of condition as possible. Ultimately, we hope to sell the home once the market improves. Our current tenants are in a similar situation- they own a home in another state and aren't able to sell it in the current market, so they rent it out and are renting our home. At some point, if their home sells, we're hopeful they will decide to buy our home.

 

A few weeks ago, our tenant calls and says the AC is not working properly and the inside unit is frozen. Our AC unit was 16 years old, so this was not entirely unexpected eventually. :glare: Still, it's pretty rotten timing for us, because we are currently paying out of pocket for our new baby due in the next few weeks. But, obviously, as landlords, we have to take care of this right away, especially here in TX.

 

So, we had the option of replacing just the inside unit, or replacing both the inside and outside units. Our outside unit was fully functional still, but the whole system uses the old freon, so if we replace only the indoor components, we'll still be on the old freon and it would cost more in the future to upgrade the entire system whenever we do decide to replace the outside unit. But, we really weren't prepared for the full expense of replacing the entire system, so we decided to just replace the indoor unit.

 

The entire transaction was completed over the phone as well as with overnighting paperwork back and forth, spelling out the work we authorized and with signatures on both sides. The AC company coordinated with our tenants and the work was scheduled for last Monday, on Memorial Day. I spoke to our tenants a few days ago and they were delighted with the new equipment and said everything is working great.

 

Then, I got a phone call from the AC company yesterday afternoon. He sheepishly explained that they'd replaced the indoor unit & coil as we agreed upon, but *somehow* they'd ALSO replaced the outside unit. But since it was on the holiday, it wasn't communicated properly & he'd just found out about it yesterday. Our old unit has already been sent to the scrapyard, so there's no undoing what they've done. He was calling to ask if we'd be willing to work something out with them, even if we were willing to partially pay for the unit. He admitted that there's really nothing they could do to force us to pay for it, but that he was hoping we'd be willing to do something. I told him I'd discuss it with my husband and that we'd get back to him in a few days.

 

So now, to decide what we should do. Unfortunately, there is no way we can just pay for the unit outright. We already had to finance the part we agreed to replace. We're still catching up from months of unemployment last year and haven't even finished paying our taxes from last year. So paying several more thousands of dollars is not an option right now. We did intend to *eventually replace the outdoor unit, but we were thinking several years down the line, after we'd paid off this part and could hopefully pay cash for the outdoor unit. I honestly don't even think we could get financed now for the cost of the outdoor unit, even if we wanted to. The AC company rep indicated that they'd be willing to work something out with us in-house financing-wise.

 

But ultimately, we're trying to decide what is the right way to handle this. We don't believe in taking advantage of other people and do believe this was an honest mistake. But on the other hand, it was a mistake and we don't think we should be completely liable either. My husband is sick and so they know he won't be calling back until next week, so we have all weekend to figure out what he should call and offer to do.

 

What would you do?

[Slipper]

Since it was their mistake, I'd offer to pay for their costs of the unit, but not any profit or labor. I'd also work this out for payments that you could afford.

 

JMO though. :)

[QueenCat]

I'm not sure why you would need to pay for anything you didn't sign for. They put something on your property that you did not agree to, and they got rid of the old. Their loss, their write-off on their taxes. Your luck. You only owe for what you agreed to, no more. You might offer to pay for a transferable warranty on the outside unit. But that shouldn't cost more than a couple hundred dollars.

[TranquilMind]

Since it was their mistake, I'd offer to pay for their costs of the unit, but not any profit or labor. I'd also work this out for payments that you could afford.

 

JMO though. :)

I think this is a fair resolution.

[QueenCat]

Since it was their mistake, I'd offer to pay for their costs of the unit, but not any profit or labor. I'd also work this out for payments that you could afford.

 

JMO though. :)

 

This would be above and beyond necessary, but if you want to do it, then it needs to be on your terms. And you would need to find out if what they are saying the cost of the unit is, is actually correct.

[*********]

:001_huh:

 

How does a company do thousands of dollars worth of work for someone accidentally?

 

Good grief.

 

I feel where you're coming from. We would want to find a way to work it out, too. But you shouldn't be saddled with a bill you can't afford because they didn't pay attention to what they were supposed to do.

 

I'd offer to make whatever payements I could. But the price would be their cost, with no profit, since it's their fault.

[TranquilMind]

This would be above and beyond necessary, but if you want to do it, then it needs to be on your terms. And you would need to find out if what they are saying the cost of the unit is, is actually correct.

Yes, I came back to this thread to point out that you must SIGN NOTHING! Do NOT sign any agreement to purchase that they give you. Write your OWN short, business-like letter detailing the facts only:

 

"On x/x/12, we requested that an inside coil change (whatever it was) be done to our (brand) AC at (address). We were informed that on X/x/12, an installer would (do whatever it was).

 

To our surprise, we received a call on x/x/12 stating that the installer had erroneously installed an exterior unit (brand and model numbers/names) which we did not order as well and requesting payment. We do not owe payment for a mistake made by (company name) in which it did x when we requested only Y.

 

Nevertheless, as a matter of fairness, we hereby provide payment for the unit itself (or whatever you decide) in the amount of $X as a courtesy in order to not be unjustly enriched by X company's error.

 

Enclosed you will find check number X in the amount of X in order to resolve this matter equitably. This matter is hereby resolved.

 

Sincerely,

You

 

Again DO NOT SIGN any documents they give you. You may end up in court defending yourself against a purchase agreement signed after the fact.

 

And you find the lowest price wholesale offered anywhere and pay that price. If you tell me what they installed for you, I can get you a price from my landlord group, which does have HVAC installers among them.

[61Keys]

The cost of the unit sounds fair and ethical to me.

 

(I may even remind the current tenants to not set it too low so it doesn't ruin this unit too)

[Scuff]

Paying their cos for the unit would be nice and generous. Ethically, I'd feel inclined to do that--IF you had the $-- But the fact is you can't afford this. You just can't. You owe the iRS, have a birth coming up, ect. You don't have the money. If I were in your position, I would tell them sorry, you just don't have it. Finantially, you can't do this. Have them let you know the cost of the unit and let them know verbally hat if things change for you in the next year and you get extra $, you'll throw some their way. You are not obligated legally, and ethically, you're family's well being comes first.

[*Michelle*]

Paying their cos for the unit would be nice and generous. Ethically, I'd feel inclined to do that--IF you had the $-- But the fact is you can't afford this. You just can't. You owe the iRS, have a birth coming up, ect. You don't have the money. If I were in your position, I would tell them sorry, you just don't have it. Finantially, you can't do this. Have them let you know the cost of the unit and let them know verbally hat if things change for you in the next year and you get extra $, you'll throw some their way. You are not obligated legally, and ethically, you're family's well being comes first.

:iagree:

 

You've got a lot on your plate and it was their mistake. That doesn't make it your emergency.

[Slipper]

You mentioned in your post that you had to finance the part you did agree to - did you finance it through their company? If so, maybe agree to pay the extra cost of the unit and they adjust your financing to include no interest?

 

I also wanted to mention that while I would pay for the unit (no profit or labor, etc), if you cannot afford, then you cannot afford it. I wouldn't overly stress about it. If you can't afford even their cost without compromising your family stability, I'd offer something, but not the whole thing.

[2cents]

In the interest of what is fair, your outside unit was due for replacement. So you eventually would have been buying another. However, you didn't agree to do that now and your unit was still functioning. It sounds like the repair guy got in big trouble and was instructed to try to recover something.

 

I'd ask for the unit at their cost. Research this on your own too to be sure that you know what the cost really is. If you use their financing, I'd have an issue paying interest. They should consider themselves fortunate to have to fix this at cost. ALSO, if you choose to do this make sure that all the warranty information is applicable to this transaction.

 

Edited to add-If paying cost is a hardship right now, you could tell them that the payment can start in 6 mos or whatever time is best for your family to begin payment.

Edited June 1, 2012 by 2cents
Added

[melissad2]

I have no idea what I would do because if that happened to me, they would be completely out of luck! There is no way I could afford to pay for their mistake. What a crappy position to be in when you want to do the right/fair thing.

[TXBeth]

Are you absolutely certain this was a mistake and not done intentional to "force your hand" at buying more than you intended? I tend to give people the benefit of the doubt, but I would be skeptical. Why was the other equipment even on the truck if it wasn't on the work order?

If I had the extra money I might give them the lowest wholesale price I could find for the outdoor unit, but I don't think you are ethically obligated to do even that much. It is their mistake.

[QueenCat]

Are you absolutely certain this was a mistake and not done intentional to "force your hand" at buying more than you intended? I tend to give people the benefit of the doubt, but I would be skeptical. Why was the other equipment even on the truck if it wasn't on the work order?

 

EXCELLENT questions! You might want to google the company, and check with the BBB to see if they've had related complaints.

[Scuff]

I'll add that it doesn't really sit right with me to do financing through them. They made a mistake and as a result you're in debt to them? No, you either have the funds to help them by coverin some o the cost, or they get to eat it.

 

I'd also caution against giving them anything without something in writing sayin that this is out of the kindness of your heart and you don't owe them a thing. I'm not a lawyer, but it seems like admitting guilt or responsibility and might cause problems later on.

 

I love what a PP said that their mistake does not equal your emergency.

[5kidsforME]

I understand you wanting to pay for it. I would tell them you can make a payment of $10 (or whatever you can afford) a month towards the unit they mistakenly put in. NO WAY would I do financing for it through them or anyone else for that matter. Why should you have to pay interest on THEIR mistake? They should be happy you are willing to pay for it at all.

[melissad2]

Are you absolutely certain this was a mistake and not done intentional to "force your hand" at buying more than you intended? I tend to give people the benefit of the doubt, but I would be skeptical. Why was the other equipment even on the truck if it wasn't on the work order?

If I had the extra money I might give them the lowest wholesale price I could find for the outdoor unit, but I don't think you are ethically obligated to do even that much. It is their mistake.

 

:iagree:

I wouldn't think they would just have it on the truck either. It seems like a big mistake on their part. What technician wouldn't read the work order before installing such costly equipment.

 

I am completely convinced that HVAC repair is one of the most crooked industries out there. We have had more trouble from them than anything else. They don't seem to be able to build a heat pump that doesn't leak freon and require multiple costly service calls. I'm sure there are a few honest ones but I am yet to find them!

[JFSinIL]

Since it was their mistake, I'd offer to pay for their costs of the unit, but not any profit or labor. I'd also work this out for payments that you could afford.

 

JMO though. :)

 

I agree with this - while it is their mistake, you will be benefiting from having the new equipment. They should cut you a big discount - eating the profit/labor seems reasonable.

[Starr]

Are you sure it was a mistake? And how did the old unit get sent out so quickly?

[Chris in VA]

Paying their cos for the unit would be nice and generous. Ethically, I'd feel inclined to do that--IF you had the $-- But the fact is you can't afford this. You just can't. You owe the iRS, have a birth coming up, ect. You don't have the money. If I were in your position, I would tell them sorry, you just don't have it. Finantially, you can't do this. Have them let you know the cost of the unit and let them know verbally hat if things change for you in the next year and you get extra $, you'll throw some their way. You are not obligated legally, and ethically, you're family's well being comes first.

 

I agree. it's too bad on their part, but they CAN write it off. At least I think so.

[Halcyon]

I would be honest and explain that unfortunately, ypu absolutely do not have the money at this time, which is why you specifically decided NOT to replace that unit. What i would do is figure out when you would have had to replace the unit (you mentioned a few years down the line) and say that, at THAT time, and no earlier, and IF you have the money, you will pay for the parts, not labor, on your own schedule. You are under no obligation, legally or ethically, to do this. But given that you know you would have needed to replace the unit at some point, figure out when that time wouldnhave been (outisde estimate) and say you will contact them at that time if you are financially able to pay something. Do not, under any circumstances, put yourself in a more challenging financial position than you already are. The last thig you need is to given them momey now, and find yourself needing that money for some other emergency.

[5kidsforME]

I just asked DH what he thought. He does HVAC amongst other handyman things. He said if he had mistakenly done something like that he would eat the cost. He said no way should you pay for it. He said a good company would eat that cost. I asked if the HVAC industry is full of crooks like a previous poster had said, and he said, ABSOLUTELY. He said he does so many quotes and work for people that have been told that their units are this or that, and he said they are just fine and only need a quick cheap fix.

 

I told him you feel bad because you know it needed to be replaced eventually. He said, tell her don't feel bad and to enjoy your new unit. :D

 

I will tell you that my DH is one of the most straightlaced people I know.

[Shellydon]

Just as an aside, you might want to make sure your tenants change the filter on your AC every month. That is a major cause of units freezing up.

[Scuff]

Any updates? What did you all decide to do?

[RanchGirl]

I think it is morally wrong of them to call and try to guilt you into paying one dime. They know you had to finance the part you did order for crying out loud! It's beyond ridiculous to ask you to pay and the whole thing sounds a bit shady given as a previous poster mentioned -- this is a pretty big mistake on their part with some very suspicious timing. I certainly wouldn't take on more debt or take food out of my kids' mouths to pay them anything. I would guess that when you say you are not able to pay anything for their mistake, your old unit may miraculously be found and returned to you.

 

Are you even sure that this new unit is an upgrade? They technically stole your other one!

[Tap]

I would pay what you agreed and not a penny more. I am not trying to be snarky or mean, but honestly you should not be responsible for their error. If you don't have it, you don't have it.

 

I had a loosely similar issue happen once with a contractor. We had a bid for some drywall texture and paint. I told the contractor/owner that I wanted the highest possible bid and that I needed to know the highest amount it would come to before I would agree to the job, because I was on a very strict budget. At the end f the job, I found out that the employees messed around (one had a drug issue) and spent wayyy more time on the job than they were supposed to. The contractor called me and told me that since his employees had cost him more that he earned on the job and it was a harder job that they expected (he bid it in person-so that was his fault) , he wanted me to pay an additional $400-500.

 

I refused. I felt bad for him, but I refused. He was appalled that I refused, but I recanted parts of our conversations about my budget and he finally relented.

 

Later, I found out that he had done the same thing to two other families. I knew 3 people who had hired him and he did the same thing to all of us...raising the bid after the job was done. It was his way of doing business and the other two families had just paid him the new adjusted amount. I think that he had started expecting people to just cough up the adjusted amount.

 

I hope he learned his lesson after me, but I doubt it.

 

 

If you want to do something, maybe after it is all said and done....and the house sells, send them the value of the unit. It may help to raise the value of the house when you sell...so you can forward it to them then. I would not tell them I planned to do it, just incase your situation doesn't allow it at the time.

[kalanamak]

I just asked DH what he thought. He does HVAC amongst other handyman things. He said if he had mistakenly done something like that he would eat the cost. He said no way should you pay for it. He said a good company would eat that cost. I asked if the HVAC industry is full of crooks like a previous poster had said, and he said, ABSOLUTELY.

 

:iagree:This could have *easily* been a bait and switch.

[RanchGirl]

scrappyhappymama, I was wondering if there are any new developments here?