Savvy Consumer: Read Your Contract's Fine Print
Aug. 18, 2006 — -- You don't actually read all that legalese-gobbledygook-mumbo-jumbo-teeny-tiny-premature-use-of-reading-glasses fine print, do you?
Most people don't, and that's a big mistake. In my job as a consumer correspondent, I have to. Ugh. I don't enjoy reading contracts, but it's very enlightening. You would not believe the self-serving clauses contained in the fine print of companies' contracts.
So many consumers call me and insist they've been ripped off. But then I read their contracts and learn the company did nothing wrong because the consumers signed away their rights. Keep in mind, not all contracts have the word "Contract" helpfully typed across the top. Receipts, sales slips, tickets, guarantees --even parking valet stubs -- can all serve as contracts.
When I bought my home, the closing took three times as long as the settlement attorney expected, because I actually read that pile of paperwork they shove under your nose. And the "contract" turned out to be more than just an academic exercise. I discovered the mortgage company and the title company had both overcharged me. I demanded an adjustment and got more than $600 back.
Read the Contract Ahead of Time
Here's what I suggest. Whenever you're making a major purchase, insist on seeing the contract well in advance of when you need to sign. Don't rely on the salesperson's summary of what the contract means. If possible, take a copy away from the business so you won't have to read it under the sharklike gaze of the manager. Take a coffee or lunch break and bring the contract with you. Better yet, take it home overnight.
Once you've got some privacy, you should not only read the entire contract but make sure you understand it. If you have trouble with the legal mumbo jumbo, get a friend to help. Maybe you know somebody who's knowledgeable about cars, diamonds, time shares or whatever. Maybe there's a lawyer in the family.
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