The below documents the correspondence and documents the transaction sequence between Boston Contractor and Calfinder.  Boston Contractor is contesting the charges from Calfinder.

 

Tuesday November 17^th:

 

A fellow contractor received a call from Ken Witfeild who represented to him that he had a Kitchen and Basement remodel to do in the Boston area.  Since kitchen and baths were not in his area of expertise he forwarded the number to me.

 

I followed up on the lead and called Ken, who turns out was not homeowner in the Boston area but works as a salesperson for a lead services company in California.  Ken launched into his salespitch for the Calfinder service and explained the service.  Calfinder employs a high pressure sales pitch in which they transfer you to a processor that sends a contract via email and waits on the phone for you to e-sign it. 

 

During the initial phone call with Ken, it was made clear that leads are $80 a piece.  He also indicated in generalities what typical companies might end up spending with Cal Finder over the course of a typical year.  At no time however, was it made clear the terms of the contract and the total dollar amount of the commitment by e-signing.  Also, during the conversation with Ken I asked pointedly if I was able to cancel the service at any time.  I was left with the impression that you could cancel the service at any time.

 

The contract is attached.  The actual terms are as follows:

 

Application fee:  $430

Monthyly Membership: $145

Lead fee:  $80 per lead, two per week. 

Three month contract.

 

This equates to a total commitment of $2945.00.  After realizing this,  I sent the below email to Calfinder on 11/17/09:  9:50 PM:

_____________________________________________________________________

 

 

Hello,

 

I spoke with Whit today phone (#510-250-6953) who is listed on the contract as the sales representative,  and there were verbal representations made in our call that are not reflected in the written contract.  Most noteably the below representation is not in the language of the contract:

• At any time advertiser can request in writing that the number of leads per week can be changed, including moving them to zero.

 

If the agreement is that I agree to pay for a start up fee, a monthly fee, and 2 leads a week for a full 3 months regardless of the quality of those leads, I will not proceed with this deal.

 

Id like to speak with Whit or whoever my ongoing contact will be to get the above representation in writing.  I would also like the full names, the direct contact information including phone and email for who my representative will be moving forward.

 

My license # is not stated correctly on the contract.

 

It was indicated that I would get a phone call today to set up my account.  A phone call was not received.  

 

The above issues need to be addressed, or I will place a stop payment on the authorization of membership fees start up costs, and contest any future charges.

 

Thanks for your assistance

 

Boston Contractor Company

________________________________________________________

 

11-18-09

 

As a follow up to this email I contacted Ken Whitfield, expressed the concerns as stated above, and then was referred to his manager Paul Drobot (510-834-4607).

 

I indicated that I was not willing to sign-up for a full 3 month contract, and that there would need to be an exit mechanism for me to stop the service without being liable for the full $2945.00.  He indicated that if I tried the service for 6-8 weeks and was not happy with it, he would let me cancel the membership and close my account.  I asked him if he would put this in writing and he indicated absolutely not.   

 

I asked Paul for references of contractors that work in the Boston area so that I could talk to them about if the were happy with Calfinder.  He refused to provide references stating his contractors do not want to take time to sell Calfinder.  He indicated instead he would email me the same day quotes from local contractors via email.  I did not receive references or quotes from Calfinder.

___________________________________________________

 

The same day (11/18) I talked to Micheal Foreman in Calfinder support.  The below is the summary of the key points that were discussed that I summarized to him in an email after our converstation.

 

HI Micheal,

 

Thanks for taking the time to speak with me today.   I look forward to working with you to make Boston Contractors relationship with Calfinder a success.

 

During the sales process I also spoke with Ken Whitfeild and his manager Paul Drobot.  The following summarizes some key elements to the discussions and subsequent agreement.

 

1. Boston Contractors business model is to serve the mid to high end remodeling, renovation, and addition market in primarily Newton and Brookline.  We have not expanded our service area because of the overheads associated with travel, logistics, and other associated factors that has to do with the fragmented nature of the many small towns and building departments that comprise the Boston area.
2. Given that my service area is relatively small, I have expressed concern about Calfinder being able to produce quality leads that fits the niche I work in.
3. The contract is for a 3 month period, with an expected lead rate of 2 per week.

 

We share the same goal.   As I pursue the leads that are provided, I would like to think that after the first 6 weeks I feel that the leads being provided by Calfinder are well worth the agreed to pricing structure.

 

However, there are some concerns that the combination of limited geography and niche may be to small to generate the quality leads we are both looking for.    I understand that my risk in trying the Calfinder service is:

-        $430 application fee

-        $145 monthly membership fee

-        $80 lead ( 2 per week).

 

For the first month the total liability is $1215.00

 

We set an evaluation period ending 12/17/09.   At this touch point it has been indicated if the leads are not being generated that the membership fee for the 2^nd month would be waived.   Paul Drobot indicated that at the end of 6-8 weeks, if the system is not working, that he would allow me to cancel my contract.

 

At this time I am not interested in changing my business model to incorporate a wider area.  If the market continues to constrict, I may change my mind on this front.

 

Please reply via email if the above is not consistent with our conversation today. 

 

Regards,

--------------------------------------------------------------------------------------------------------------

 

The same day 11-18, Calfinder sent me a lead prior to me filling out any application with regard to references, insurance information, and since by license # is wrong on the application it is very unlikely they vetted a valid construction license.

 

I called the perspective client and the below email to Micheal Foreman documents the result.  Copy of the lead is attached.

--------------------------------------------------------------------------------------------------------

HI Micheal,

 

We are not off to a good start.  I followed up on my first lead (ID in the subject).

 

customer x of X Avenue stated that she clearly indicated to the Service Magic people that she wanted two bathroom cabinets done.  She was quite aggravated because she went to extra lengths with them to make it clear what her scope of work is (two bathroom cabinets).  She indicated that the service magic rep was trying to put her in the kitchen category and she repeatedly said she needed two bathroom cabinets done.     She has received multiple (6 to 8) calls from contractors with the understanding that she wants a kitchen remodeled ( which is the lead you gave me).

 

This is not a legitimate lead for a Kitchen remodel.

 

Secondarily, If both you and Service Magic are selling the same leads it is not the deal that was represented to me (Paul and Whit indicated you are developing your own leads and they go to a maximum of 3 to 4 contractors). 

 

If you are getting secondary leads from other lead services, they are not worth $80 a lead.

 

Please contact me on my cell

 

Regards,

-------------------------------------------------------------------------------------------------------

 

At this point it was clear to me that the upfront obligations of this proposed deal were not a good fit for me. 

 

Calfinder makes the following pledge to their customers below with regard to contractors. 

 

Excerpt from Calfinders website:

 

CalFinder's Pledge to You

Why You Should Use a CalFinder Contractor?

• Quality workmanship
• Fair pricing
• Availability for your questions
• Happy customers and vendors
• Clear contracts and agreements
• Friendly service

We only feel comfortable referring contractors that we would have work on our own homes. When we certify a contractor we are looking for more than just quality workmanship or a final product.

We care about the customer experience and look for contractors that ease the process of home improvement. Our contractors are reliable, you can count on the promises they make.

From initial estimate to final walk through our contractors are available for your questions and concerns. The combination of these outstanding business practices in combination with character and integrity make up a CalFinder Contractor.

If you are ready to get started with a CalFinder Contractor and would like Free -estimates, select your remodeling need below:

------------------------------------------------------------------------------------------------------------

The fact is Calfinder sent me a lead and referred me to a customer without:

-        checking my client references

-        checking my vendor references

-        checking to see if my general liability insurance was current and at appropriate levels

-        checking to see if I had workmans comp insurance

-        asking to see my contract format

 

Basically, they had a 30 minute conversation with me and looked at my website. By giving my name out to one of their clients,  Calfinder did not live up to the pledge to their clients to receive my application and thoroughly check me out as a contractor.   Based on this, I made the determination that they would also not honor their pledge to me to only present and charge me for qualified leads.

 

HI Micheal,

 

I have decided not to engage Calfinder for your lead service.

We have not yet entered our profile information so no vetting work could have started.

No services have been rendered (as the lead you sent was not accurate).

 

Any Charges on the card provided will be challenged.

 

Regards,

 

 

 

After this email on 11-19 Micheal Foreman verbally agreed to cancel my contract, but indicated he would not roll-over and would still charge the $430 application fee and $145 to my account even though an application was never filled out by Boston Contractor and no services were provided.  I indicated to him to close my account, and I would contest the charges.

 

I sent an email 11-20 to Micheal foreman requesting that he confirm my account was closed.

-----------------------------

Hi Micheal,

 

Per our conversation yesterday I wanted to confirm you closed my account.

 

Thanks,

------------------------------------------

 

Hi Brittany,

 

Im not going to be using the Calfinder service, and spoke with Micheal Foreman last Thursday.  He indicated he is cancelling my membership.  Please confirm that it is cancelled.

 

Thanks,

 -------------------------------------------------------------------------

 

On November 22^nd, I received an email to fill out my application:

Dear,

Welcome! I'm Brittany, the Online Editor of CalFinder and Ill be writing an article about your company for your space on CalFinder.com. This profile will be visible to any of our 200,000 plus visitors a month and is intended for these homeowners to feel comfortable and confident with your services. Im a trained editor & writer and can make your company profile radiate success. If you prefer a phone interview, you can always give me a call or respond by e-mail with a good time to reach you.
 
Lets get started:

1.)    What is your company name?
2.)    How long have you been in business?
3.)    Do you have a website? If so, would you like me to pull a mission statement from there and integrate it into your CalFinder profile?
4.)    Does your company have a specialty or focus that you would like me to emphasize?
5.)    What do you pride yourself on the most?
6.)    How would you describe your working relationship with clients?
7.)    What sets you apart from other contractors in your trade?
8.)    What are three words you would use to describe your company or business philosophy?
9.)    Have you noticed any new trends in your industry?
10.)  What was your favorite job and why?
11.)  Our readers like to hear about your growth and success. How was your company started?
12.)  Anything else to add about your company? The more information you provide, the more detailed your profile will be.
 
I will send you a link to your CalFinder profile when its all finished.

Thank you so much,
Brittany Mauriss
Creative Content Editor
[email protected]
-----------------------------------------------------------------------------------------------------

I replied:

 

Hi Brittany,

 

Im not going to be using the Calfinder service, and spoke with Micheal Foreman last Thursday.  (nov 19). He indicated he is cancelling my membership.  Please confirm that it is cancelled.

 

Thanks,

 

 

I contest the charges based on the following:

1. Calfinder uses high pressure sales techniques where they have you e-sign a document without giving you a chance to thoroughly review the contract, the terms, or do due diligence on the Calfinder company.
2. Calfinder is indicating a charge for a $430 application fee.  However, Boston Contractor did not fill out the online application forwarded by Calfinder .   The information that CalFinder needs for its pledge to vett contractors was never provided.  Therefore, Calfinder could not have possibly spent any time doing the due diligence to validate Boston Contractor as a legitimate Calfinder Contractor.
3. Prior to Boston Contractor providing any of the information required, Calfinder provided Boston Contractor with a lead, indicating that they did not fully live up to the pledge to their clients to do thorough checks on contractors before referring them.
4. Based on this first lead, it was apparent that the lead was not thoroughly checked for accuracy.