Mile Hi Insulation caught over-charging customers, using wrong measurements to calculate cost of job

DENVER - Mile Hi Insulation's advertising may not be their only questionable business practice. In some instances, Mile Hi was caught over-charging customers by using the wrong measurements to calculate the final cost of insulation.

In an earlier report, CALL7 investigator Theresa Marchetta exposed Mile Hi Insulation's misleading advertising practices. 

Mile Hi placed door hangers on many Front Range homes that insinuated a relationship with Xcel Energy that does not exist.

After spending thousands, customers who thought they would be eligible for an Xcel rebate, learned they work on their home would not qualify.

Crystal Novinger, a manager at Mile Hi Insulation, responded to our request for a statement, providing these numerical bullet points:

  1. "We are unaware of any unresolved complaints and are more than happy to take care of any consumer with a complaint.
  2. We used to be a registered contractor with Xcel and THEY changed their criteria to make consumers pay more for additional services to qualify for the Xcel rebate. We decided not to do that to our customers and have never used the Xcel logo or name since.
  3. None of our advertisements or cards or contracts mention Xcel or an Xcel rebate.
  4. There are MANY rebates available to homeowners for attic insulation and those are constantly changing.  What we offer is an instant rebate which is a discount that we give immediately.  Which is what our literature says."

Marchetta asked for a list of the "MANY rebates," but Mile Hi did not return her emails.

Contradicting Novinger's statement, homeowner Pam Owensby showed Marchetta three solicitations placed on her door over the past three months, one that referenced "your local energy company."

The flyer she received in January highlights "all work to be completed by an Xcel registered contractor," a full year after Xcel sent a cease and desist order to stop Mile Hi from using Xcel's name or logo in their advertising.  

"They are hitting our neighborhood hard," said Owensby, who was initially attracted to the company by their claim to be a registered contractor of Xcel Energy. She said the advertisements she received "(led) you to believe they're on Xcel's list."

Like all of the Mile Hi customers Marchetta spoke with, Owensby said she was told by the sales representative that she should qualify for the rebate. In her case, he went so far as to offer a back-dated receipt to make sure she got credit in 2013.

For Owensby and others, the advertising was not the only problem they experienced with Mile Hi Insulation.

"They did not charge me based on my attic square footage," said Owensby. Instead she said they charged her for the "total square footage of a two story home" and "never went in the attic space, he never measured."  

David Jackson, from the initial CALL7 investigation, said he experienced the same problem.   

"I actually went and measured out that it was about 1,100 square feet," he explained to Marchetta. "And they were telling me the initial quote, I think they were saying it was 1,700 or 1,800 square feet." 

Jackson says Mile Hi refused to adjust the price, and instead sprayed extra insulation into his attic to compensate for their mistake.

Owensby, Jackson and others have filed complaints with the Better Business Bureau (BBB). On Feb. 26 the BBB removed Mile Hi's "A+" rating and replaced it with a "not rated" status while the BBB completes an advertisement challenge with Mile Hi Insulation.

Information and complaints against Mile Hi can be found on the BBB website under "Mile Hi Metro Maintenance."

In addition to filing complaints with the BBB, if you have experienced problems with Mile Hi Insulation contact the Colorado Attorney General's office and file a formal complaint with them. For more information:

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