A consumer called me with a real doozy. It seems a local company advertises some of the lowest prices in the area. So far so good, but when the local consumer decided to contract with them to replace her aging furnace and A/C unit, things didn’t go so smoothly. Her version of the story — and it is just one side — is this:

They came, installing a furnace and A/C unit. In the process of the initial discussions, the homeowner inquired about an on-demand hot water system. Before she knew it, the furnace and A/C unit had been changed out and in addition, the company had replaced her traditional hot water tank with a spiffy new on-demand hot water system. She realized this when she looked out her window and saw her old water heater on its side in the driveway, ready to be hauled to the dump. As we all know, water heaters are rather delicate appliances and don’t react well to being pushed over on their sides in the driveway. By the way, her old water heater had been working just fine.

She called the company and objected to the installation of the new on-demand hot water system. After all, she didn’t order or contract for it. The company offered to reinstall the old water heater. (The one that was lying on its side in the driveway.)

Things went from bad to worse. The new, unwanted hot water system doesn’t work as advertised or expected. The furnace and A/C units were not installed according to local code, and an inspector noted 11 different violations. The inspector also informed the homeowner that the HVAC is not the proper size for her home. Her complaints to the company were ignored. When she continued to call and complain, she was accused of threatening the company’s staff and as a result of her “threats,” the company refuses to take her calls or come out and service the furnace, A/C unit or the new (but unwanted and un-ordered), nonfunctioning, on-demand hot water system.

As I said in the beginning of this segment, all this is according to the consumer, and it’s her version of what happened. Once she puts all this in writing, I will forward it to the company and ask for their response, in writing. There are always at least two sides to every story, and as the late great Paul Harvey was fond of saying, “Now for the rest of the story.” I’ll be waiting and I will let you know — promise!

BAD IS NOT ALWAYS IMPOSSIBLE: Sometimes there seems to be no way out of a bad situation. Almost always, there’s some way out. Financial problems are some of the most difficult to solve.

Example: A retired government worker, veteran, single and disabled, called me the other day. He was, as they say, at the end of his rope. He receives a modest monthly pension and recently purchased a home. Unfortunately, in setting up his new home he overextended himself using two credit cards. Pretty soon he missed a couple of monthly payments to those cards, and much to his dismay, found that the annual interest he was being charged exceeded 30 percent APR (Annual Percentage Rate). As many of us know, if you make the minimum payment, you’ll be paying mostly interest and your debt will seem like it lasts forever.

As the months dragged by, he realized that between his monthly mortgage payments and the monthly “pound of flesh” to the credit card companies, and some additional, very small but essential living expenses — like food and utilities — he had no money. If you’ve ever been in that situation (and I have), you know how hopeless and desperate that feels.

When he called me, I could tell he was down. I listened to his plight and suggested that he turn his short-term, high-interest debt into long-term, low-interest debt. I suggested that he refinance his home and pull just enough cash out to completely pay off the high-interest credit cards. Ultimately, he did just that, and his problem was solved.

Be careful if you’re thinking of doing this. An honest mortgage lender is an essential part of this equation. Otherwise, you could just be digging yourself a deeper financial hole.

By the way, the word “mortgage” has its roots in Latin. It literally means, “to kill off over time.” Funny, I thought that was the definition of marriage. My wife didn’t find that funny at all!

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Historical Note: There was a time when an APR over 13 percent was illegal. It was called “usury,” and only blood-sucking loan sharks charged that kind of interest. Today, many financial institutions charge their poorest customers the highest interest. The federal government has largely abandoned most prohibitions against taking unfair advantage of their customers.

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LOCAL SCAM ALERT: The mortgage and financial crisis caused many in our community to lose their homes. Those thusly affected have suddenly found themselves competing for a relatively small number of rental units. It has also resulted in many “rental agencies” springing up. Some of the less scrupulous agencies and even property owners have taken to charging all applicants a non-refundable application fee, ostensibly for “administrative” costs of processing an application and checking the applicant’s credit rating and references.

Each applicant is required to submit a non-refundable application fee with the application. One applicant is chosen; the remaining application fees are kept by the landlord or rental agency. The result: a nice little income for the processor of the application — even if in reality they may process only one application.

This scam is local, and particularly bad because it specifically targets the people who can least afford it. One family of four is currently living in an old, small RV with their dog. This month they have made applications for eight different apartments or small houses, been turned down for all of them and spent in excess of $400 on non-refundable “application” fees. What a rip-off! I don’t like big government, but maybe it’s time some local and state regulators stepped in.

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Recently, your kind and gentle Consumer Guy, in connection with a scam call, received a death threat. I’ll write more about that on Thursday. Go to www.cdapressconsumerguy.com to hear some actual scam calls.

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I have many more interesting cases that I’m working on as The CDA Press Consumer Guy. Call me at (208) 699-0506, email me at CDAPressConsumerGuy@gmail.com or fax me at (866) 362-9266. Also include your full name and a phone number. I am available to speak about consumerism to schools, and local and civic groups.

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Bill Brooks is the CDA Press Consumer Guy. He is an active Associate Real Estate Broker for Tomlinson-Sotheby’s International Realty in Coeur d’Alene.