Ken & Latrice Innes
  
Redding, CA 96002
  
primehalo@hotmail.com
June 2, 2002

PaceSetter
10461 Old Placerville Rd, Suite 170
Sacramento, CA 95827
Phone: 916-364-3900

Dear Sirs,
On Wednesday, April 10, 2002 at about 1:30 PM Gerry Anderson contacted me at my office to discuss the letter we mailed out on Friday, April 5. In our conversation, he agreed that our requests stated in the letter were acceptable. We agreed that we would accept $3,800 off the price of our contract for not having the garage door if we were written letters of apology and the top section of our bathroom window was replaced with non-obscured glass. I asked if we would have to sign a new contract, and he said that we would not have to.

On Saturday, May 18, 2002 we received in the mail an account statement from Federal Diversified Services. On this statement, it showed that the $3,800 had not been removed from our balance. As I was leaving for L.A. on Monday, I was unable to contact anyone about this until I returned.

On Tuesday, May 28, 2002 I called Federal Diversified Services. The lady on the phone told me that in order to have the $3,800 deducted from our balance, we needed to have signed a new contract. After I told her that I was specifically told we would not have to sign a new contract, she told me that we would then have to sign a settlement release. She then gave me the following number to call: 1-800-444-1284.

I immediately called this number, and the lady on the phone, after typing some of my info into the computer, told me that she would have to go to the other room to pull our file. I told her that I did need to go in to work today, and asked how long it would take. She told me it would take about twenty minutes. I told her I would then hang around the house a little longer, and she told me that she would try to hurry. After an hour went by with no phone call, I called back. This time a different lady answered, and she told that our file was en route via mail.

On Saturday, June 1, 2002 we received in the mail a mutual release form. There are several problems with this form. First, under the "dispute" section, it states that our dispute was with "the delay in installing some of the windows". Although our windows were delayed, the main dispute was in the extreme delay in installing the garage door. Second, under the "mutual release" section, the statement "Buyer expressly waives all of Buyer's rights…" is not acceptable. Waiving any of our rights was never part of our agreement. Third, under the same section, the statement "neither party will make any allegations or complaints to any consumer protection agency, contractor board, or similar group regarding this dispute…" is not acceptable. We do understand the purpose of it, as you do not want us going to one of these types of groups in an attempt to get more money. This is understandable and acceptable, but we will not sign away our right to complain. Forth and finally, although this is a minor point, the document was not dated next to Gary S. Kluck's signature.

In my phone conversation with Gerry Anderson, I specifically asked if we would have to sign a new contract, and he told me that we would not have to. At this time, he did not mention that we would have to sign any other document other than signing off on the job. It is for this reason that we must insist that the $3,800 we agreed upon is immediately removed from our balance so that we may begin making our payments, the first of which must be received by Federal Diversified Services on June 16, 2002.

Sincerely,


Kenneth & Latrice Innes