Over charged by Home Advisor

[SwishPainting]

I am a painting contractor who relies on lead sites such as CraftJack and Home Advisor I had joined Home Advisor before they merged with Angies List. The way they work is you set a monthly spending limit and are then sent painting leads throughout the month based on the spending limit I myself set. The amount of leads I receive a month is completely up to me based on what I set my spending limit. Some months I would set my limit at 200.00 and a few times I set it as high as 300.00. The last month I had used Home Advisor I had set my monthly spending limit at 300.00. within a week of setting my monthly spending limit at $300.00 I logged on to my Home Advisor account and as shocked to see that I had been charged for $6,194.88 worth of leads that has since been sent to collections. I have tried to contact Home Advisor but I am given the run around. I demanded to know how I can be charged even one dollar over the 300.00 dollars I had set my monthly limit to let alone $6,194.88 and am never given a legitimate answer. Any advice as to how I should go about this legally would be greatly appreciated. Would this be a matter for small claims court and is there a specific type of layer that deals with issues like this.

 

[Taxing Matters]

Any advice as to how I should go about this legally would be greatly appreciated. Would this be a matter for small claims court and is there a specific type of layer that deals with issues like this.

The first place to go when you have this situation is the contract you have with HomeAdvisor. Assuming that the current HomeAdvisor contract terms for contractors is the one that applies to you, then you will need to note the following term in the contract:

Any disputes about charges to your account must be submitted to HomeAdvisor in writing within 30 days of the date such charges are incurred. You agree to waive all disputes not made within the 30 day period, and all such charges will be final and not subject to challenge.​

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So my first question for you is this: did you submit a dispute about this to HomeAdvisor in writing within 30 days of receiving the first bill for this?

If you did complain in writing within the 30 days and the company doesn't fix it in your favor, then the contract provides that your only option to resolve the matter is through arbitration. See part X of the contract. Under the Federal Arbitration Act (FAA), such agreements to arbitrate disputes are generally enforceable. That would prevent you from suing the company in court over your dispute with the company. If for some reason that term would be uneforceable against you, then the contract provides you may only sue in federal or state courts located in Denver, Colorado. In that case, you would, however, be able to sue in Denver small claims court as the small claims court limit in Colorado is $7,500. The problem here, though, is that your costs to travel to Colorado for this can't be recovered in the law suit. Where are you located? That travel cost might make this an unattractive option.

Notice, too, that Colorado law is the law that would be applied. If you didn't submit a complaint within the 30 days allowed by the contract, then you'd have to argue in your arbitration (or court hearing, if you can get around the arbitration provision) that the 30 day provision is illegal/unenforceable under Colorado law. I'll get into that more if that's the situation you are in.

 

[adjusterjack]

Any advice as to how I should go about this legally would be greatly appreciated.

A quick check of the internet reveals that HomeAdvisor has a less than stellar reputation among contractors. That's something you could have easily found out before signing on to them.

I don't know if this will do you any good but try writing directly to the CEO.

Jeff Kip, CEO
HomeAdvisor, Inc.
3601 Walnut St #81
Denver, CO 80205

 

[Zigner]

This sounds like a chargeback based on prior leads that defaulted on their payment(s), not a "charge".

 

[Taxing Matters]

A quick check of the internet reveals that HomeAdvisor has a less than stellar reputation among contractors. That's something you could have easily found out before signing on to them.

I don't know if this will do you any good but try writing directly to the CEO.

Jeff Kip, CEO
HomeAdvisor, Inc.
3601 Walnut St #81
Denver, CO 80205

That address is a WeWork office sharing arrangement place. Perhaps the CEO uses that place to do some of his work, but no telling how much time he spends there. The actual business address for HomeAdvisor is:
HomeAdvisor, Inc.
14023 Denver West Pkwy
Bldg. 64
Golden, CO 80401