Watchdog Nation

A judge says an air conditioning & heating company engaged “in a well-orchestrated scam.”

UPDATED POST: Please note the resolution of this case in the post at the very bottom that updates this story as of March 2010.

The company is Hobson Air of Weatherford, Texas, also doing business as Comfort Experts and ACGenius.

Stephen Maxwell received a flier in the mail from Hobson Air Conditioning advertising a $49 heating-system tuneup. If he acted quickly, he would also get a free carbon monoxide safety check. Maxwell accepted the deal.

The service tech who arrived examined his upstairs furnace and came downstairs with a smile on his face and a dire warning, Maxwell recalled. “It is your lucky day,” the tech told him. “I have probably saved your lives.”

On a work order, the tech wrote, “I found holes in the heat exchange. The holes are large enough that the carbon monoxide being transferred into the home could be lethal for the family. Gas has been turned off.”

Maxwell said he was grateful. The tech told him that another employee of the Weatherford-based business would come by shortly with repair information.

An hour later, a second Hobson employee showed up and told Maxwell that replacing the furnace would cost $15,000. When Maxwell balked at the price, the man said he could buy a less expensive unit for $6,500.

Maxwell wanted a second opinion.

Two days later, a man from a different company arrived at Maxwell’s Arlington Heights home. He checked the furnace and found nothing wrong.

Still unsure, Maxwell brought in a third company. The verdict? Once again, Maxwell was told that everything was fine.

As first reported in the Dave Lieber column in the Fort Worth Star-Telegram, Maxwell wrote The Watchdog: “Unlike the vast majority of the people whose complaints you investigate, I am in a position to do something about this myself.”

See, Maxwell is a Fort Worth lawyer. He filed a small-claims-court lawsuit against Hobson, alleging a violation of the Texas Deceptive Trade Practices Act. The case was filed in the court of Tarrant County Precinct 5 Justice of the Peace Manuel T. Valdez.

In a 110-minute trial last week, Maxwell asked for the return of the $517 he paid the company for parts and service and asked for triple that amount in damages. And he asked that Hobson, which also does business under the name Comfort Experts, pay his court costs and legal fees. Maxwell was represente by his law partner, Daniel Sullivan.

On the stand, Maxwell testified that after he learned that the original diagnosis on his furnace might be wrong, he contacted Hobson and asked for his money back as part of the company’s no-questions-asked, full-refund policy. But a company official refused the refund unless he could visit Maxwell’s house and look at the furnace. Maxwell was adamant: He was never letting any Hobson employee back into his house.

Maxwell’s lawyer called the techs who gave the second and third opinions to support Maxwell’s testimony. Both testified that they found nothing wrong with the furnace.

Hobson Vice President Philip Brian Hobson, the sole witness for the defense, testified that he wanted to visit Maxwell’s house to see the problem for himself but that Maxwell wouldn’t let him.

Hobson sounded apologetic, saying: “We didn’t communicate properly with Mr. Maxwell.” He told the court that he was willing to refund Maxwell’s money and even give him a new furnace for free if his company’s original diagnosis was proved wrong. But he never got the chance.

“We are definitely not out to take advantage of anybody,” Hobson testified. His only goal, he added, was to make sure that his customers are safe in their homes.

Asked by Maxwell’s lawyer whether his techs ever make mistakes, Hobson answered, “We don’t make mistakes on heat exchanges.”

After Hobson testified that his company has a good reputation, Maxwell’s lawyer pointed out that Hobson Air has a D- rating from the Better Business Bureau at Fort Worth.

In his closing statements, Maxwell’s lawyer said that the case amounted to a poker game and that Maxwell called the company’s bluff.

“They wanted to rip these people off,” Sullivan told Valdez. “They wanted to sell them a unit they didn’t need.”

Hobson lawyer Trey Harris countered: “They err on the side of caution.”

In pronouncing his verdict, Valdez began by saying that he wished the whole world could have witnessed the short trial. “This was really a well-orchestrated scam,” the judge said.

Valdez recalled how he was once told by a heating-and-air tech at his home that he needed a new $8,000 unit. In the end, Valdez said, he needed only a $7.50 part.

“This is done on a daily basis all over the place,” the judge said. Consumers, he added, need to educate themselves rather than believing the first thing a technician tells them. The Hobson tech who visited the Maxwell house, Valdez said, “was not there for the good of that family. He was there for the good of himself.”

The judge awarded Maxwell all the money he asked for.

Hobson lawyer Harris told me outside the courtroom that the company will appeal.

He added: “The furnace is still bad. We still want an opportunity to inspect it.”

Maxwell said his family used the furnace all last winter. There wasn’t a problem.

After a small-claims-court judge ruled last month that Hobson Air’s sales tactics amounted to “a well-orchestrated scam,” the state opened an investigation.

And we heard from other customers who have had problems with the Weatherford-based company since The Watchdog reported on the case two weeks ago.

Tarrant County Justice of the Peace Manuel T. Valdez ruled against Hobson in a suit brought by Fort Worth attorney Stephen Maxwell. Maxwell testified that a Hobson employee told him that his furnace was leaking carbon monoxide and that Hobson had saved his life.

Maxwell sought opinions from two other heating-company owners, who testified that there was no leak.

Hobson officials contended that the furnace is bad. But Valdez ruled that Hobson must pay Maxwell triple damages because the service employees were “not there for the good of that family.” Hobson plans to appeal.

The state investigation in that case makes 11 ongoing investigations by the Texas Department of Licensing and Regulation into the practices of Hobson Air, which also does business as Comfort Experts, department spokeswoman Susan Stanford said.

Here are three other stories about Hobson Air sent to The Watchdog, along with the company’s response from Philip Brian Hobson, vice president for service.

Saving lives

Perry Milam of Azle says a Hobson tech turned off the furnace one cold evening and announced that he had saved lives because of a leak. A Hobson employee said a new unit would cost $12,000. Milam hired a second company to reconnect the furnace and a third to do semiannual checkups. Both companies told him there was nothing wrong with the furnace, Milam says.

Hobson’s reply: “We believe that furnace is unsafe.” Furnaces do cost $12,000 or more, he says, but the company’s sales sheet lists less-expensive options, too, on the same page.

Collection hassle

Kristi Edmunds of Azle says she responded to Hobson’s coupon for a low-cost tuneup. A Hobson tech advised that the furnace was not going to last another week. She was shown an option to buy a new furnace for $14,000. She paid $177 for minor work but later saw that the promised work was not completed.

She asked for and received a full refund.

But for two years since, she has received collection letters seeking $177, plus fees. When she called the lawyer who sent the letter, the phone number didn’t work.

“To this day, we still get letters from collection agencies and Hobson and phone calls from Hobson. Each time, I call Hobson and go over the whole thing again. They tell me every time they apologize and will have the bill taken care of.”

Hobson’s reply: Different lists that keep track of who owes “didn’t cross each other.” Last month, the company worked to fix the problem. “We’re going to get that off the receivables list,” he says.

A state complaint

After Gerald C. Liepert of Willow Park was told by a Hobson technician that he had saved lives, Liepert bought a new furnace from Hobson that didn’t work properly. He visited Hobson’s office seeking help but couldn’t get any. The family went without heat.

After Liepert complained to the state, Hobson replaced a faulty part.

The furnace works, but Liepert says he refuses to withdraw his state complaint until he is certain the furnace will work.

Hobson’s reply: A Better Business Bureau complaint on the matter is listed as resolved. He says he hopes the replacement part continues to work.

Words of support

Hobson has its defenders. Gina Vaughn of Watauga called The Watchdog to report that her husband died in 2003 from a carbon monoxide leak from a furnace. After Hobson Air learned about the tragedy, the company installed a new furnace for free, she says.

She approves of Hobson’s mission of erring on the side of caution to protect families.

“These people care,” Vaughn says. “What they’re doing is right.”

# # #

Update as of March 2010: The following appeared in the Dave Lieber column in the Fort Worth Star-Telegram:

Fort Worth lawyer Steve Maxwell says he’s a little embarrassed that his small-claims-court case against Hobson Air of Weatherford went as far as it did. Hobson shut down Maxwell’s heating system after a technician said he found a hole that could have emitted gas and killed his family.

Maxwell hired other heating experts who couldn’t find a hole. He sued Hobson in small-claims court and won.

A week ago, a visiting judge in Tarrant County presided at a trial based on Hobson’s appeal. Maxwell alleged that the company engaged in misleading advertising. He showed that the company promised a no-questions-asked refund. But when Maxwell asked for his money back, the company wouldn’t give the refund without conducting a follow-up visit. Maxwell didn’t want the company to come back.

The judge ruled that the ad’s promise wasn’t kept. Hobson has to pay the original judgment of $623, and the company (which also does business as Comfort Experts and ACGenius) has to pay $10,000 more for Maxwell’s legal expenses.

Still, even though Hobson lost the case, it won back some of its reputation. Turns out there really was at least one hole in Maxwell’s furnace. Hobson was right after all.

Maxwell says he was surprised when his expert found the hole. It changed how he viewed the case, he said.

Company President Brett Hobson told me: “Our diagnosis of the furnace was correct, and nobody argues with that. We were right. I think that’s the most important thing. I think we got a bad rap out of it.”

Last year, Hobson sued Maxwell for libel and slander, asking for $6 million. Maxwell countersued, contending that the Hobson lawsuit was frivolous because everything he said was in small-claims court and protected speech, especially when he won the case.

Brett Hobson says the company will drop the libel lawsuit. He considers the matter over.

Portions of the above may have first appeared in the Fort Worth Star-Telegram.

Published in Column, November 24th, 2009 by Dave Lieber

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29 Comments to this post.

  1. Kathy U

    As a former "victim", I am glad to see this happening. Hobson’s got just a little too greedy, didn’t they! I was taken by them in 1979 and have not forgotten and gladly tell people about my thoughts on this company. I stress that this is nothing new as anyone can see from the date. Maybe a class action suit by the most current victims would be interesting. Google Hobson Air and you will see lots of comment boards and none of them are positive experiences.

  2. Karen K

    Yes, I too am glad to see this company exposed. I was taken in by a $79 tuneup offer and failed to do my research before contacting the company. After waiting three days for them to show up, of course, the "technician" said I needed a new unit. When questioned by my brother who has HVAC experience, suddenly the gauges weren’t reading zero as he said. He refused to do the tuneup saying that he didn’t have his scales with him. Why would they send someone to perform a tuneup without the proper equipment? Because as I found out later the "technician" did not have a license to do a tuneup! In addition, he called the police saying that I had refused to pay his bill (though he had never presented me with one)! Unbelievable!! Then for months I was harassed to pay a bill for services not received. Only after I filed a Better Business Bureau complaint and got an attorney involved did they stop calling me and sending me bills.

  3. Sharon Erway

    We signed a contract with Hobson in 2005 which was a big mistake. Hobson had recommended that we install a new air conditioner and heating system. I was surprised because our house at the time was only five years old. We got a second opinion from Glenn’s air conditioning in Fort Worth and they came out and said our system was just fine and would last several more years – which turned out to be true. I highly recommend Glenn Air Conditioning.

  4. Kathy Hays

    I was suckered for $13,000 by Hobson Air 3 years ago. They have had to come out for repairs several times each year. They left me and my daughter without air for almost a week. It was the hottest week of the year! Only after I filed a complaint with the BBB did they come out and repair my unit.

  5. Barbara Barnett

    When I moved to Texas and purchased my house 3 years ago, I had air conditioning issues. I was told it was the duct work by one company and then I got an opinion from Hobson! Needless to say, I , too, was suckered into a new unit and they only repaired my duct work(no replacement). The long and short of the story is, that for a year and a half, I tried to get a freon leak fixed that existed from the beginning of installation. I could not communicate with Hobson (they wanted more money) and I ended up using a different company for the repair. I realize I should have done more research and feel more educated after the Watchdog was good enough to bring this story to the public. That gives me some satisfaction. Thank you.

  6. Philip Hobson

    Upon appeal, judge ordered that expert be allowed to inspect furnace. Furnace was bad as diagnosed by Hobson tech. Furnace had both crack and hole in heat exchanger and was dangerous. Judge was irresponsible making statement and Mr. Maxwell has changed the "good" furnace. This poker game (as Maxwell calls it) is not a game to Hobson and the game is not over. Hobson has never intentionally taken advantage of anyone and never will. Most complaining customers owe Hobson money. Unfortunately, many people are not happy unless they can get something for nothing. This is not over with Maxwell. Stay tuned. Philip Hobson
    Proud founder and parent of present Hobson management.

  7. Steve Maxwell

    No, Mr. Hobson, that is not exactly accurate. The furnace was not bad, nor was it dangerous. There was indeed a crack in the bottom of the unit. Nevertheless, as you are aware, a crack in a heat exchange unit does not mean the unit is dangerous. Your service tech made me sign a Hobson form which advised me that there was "an immediate danger to life" and that he had detected "high carbon monoxide levels." Both of those statements were false. If the burner is emitting a clean flame (which mine was, then there is no carbon monoxide threat. Carbon monoxide measurements were taken on 4 different occasions between the time that the Hobson service tech did his "inspection" and October 6 of this year, and all 4 of those readings showed either NO DETECTABLE CARBON MONOXIDE READINGS AT ALL

  8. David Anderson

    Gosh Phillip,

    I sit here reading this as I freeze, wait for your service people to call back to schedule to come out for the FIFTH time since December 9 (you read that right) because my system that YOUR PEOPLE installed still doesn’t work. Funny….a 10 parts and labor warranty (installed in 2002) that you people don’t want to honor. A service plan that includes very little service. Phone calls never returned (including from Brett).

    Just for the record: I don’t want something for nothing. I want what I paid for, and I want a system that works! And no, I don’t owe Hobson money.

    A proud parent? Sir, you need to start paying attention to what your offspring are up to!

  9. Diana White

    It’s not just them trying to sell the public trouble, but their hiring practices are just as bad. I went to apply for the receptionist/adminstrative assistant positions they supposedly had available and actually interviewed for data entry. That was over two weeks ago. I read on Craigslist that they are hiring for the same positions again, but I was not notified that I did not meet their qualifications. The "corporate" offices are nothing but a high-end barn on the outskirts of Weatherford.

  10. Nina Abraham

    Their $79 AC tune up is a trap. They wanted to do $800 worth of repair which was unnecessary based on a second opinion that I got. Please look for AC repair companies that have a A+ in BBB. This one has an F rating.

  11. Kenneth Hamburger

    Mr. Hobson,

    I have been an service customer for about 3 years now and need a new system, your sales consultant came out and gave me a quote and signed, then the next day you had his supervisor come out and and tell me that they can not put in a system for that price. I called and my girlfriend called to get a response to why you wanted to charge me almost $1000 more than the $9100.00 you quoted me. And I still have not received any response.

    Your company is an Epic Fail!!
    And no I don’t want something for free and I don’t owe you any money!

  12. Dave Maxwell

    If you don’t like their prices, you should take other bids. The main point I see here is that there was a problem with this heat exchanger, and Hobsons was right for shutting it down, if they had not done so, they could be liable if the customer was poisened by carbon monoxide. Just another lawyer hiring hacks to say there was nothing wrong with the furnace. I say,"Good job" to the tech, this shows he is better trained than most. If you are going to point fingers, than give the names of the second and third companies that said there was nothing wrong, they are the danger here.

  13. brian

    I had Hobson’s replace my system this summer and honestly could not be more pleased. All you people that are complaining about price surley you saw that they offer less expensive options! Any company that has been in business for nearly 50 years cant be all bad. They were the most impressive out of four companies that I talked to and the only one that did calculations to determine the proper size for my home and did all the things that consumers reports and numerous other air conditioning experts on the web say they should do. And how dare Steve Maxwell and Judge Valdez accuse Hobson’s of not being honest and gambling with his family’s life. In the end it appears there really was a hole in the heater and Hobsons was right from the biginning. I too say "good job Hobson’s"

  14. brian

    And before anyone asks. No I’m not the Brian Hobson in the Watchdog story. Its Brian Standoffer

  15. David Martinez

    I paid aprox. $500 to Hobson for repairs on a unit i had serviced a year before by another company. My mother called me and said she called Hobson and they would repair it. I told her go ahead and have them give an estimate and contact me back. She called me back saying the technician said to my mother, "there was reason for immidiate work to be done!" She was so thankful that the technician had saved her life and I was also. I would of paid anything i had to ensure my mother’s life. Later on a friend was over and i showed him the statement and he looked at what the technician had done. After looking at it he told me that my mother had been decieved and i had been ripped off. I’m a proud American taxpayer and work hard for every dollar I have. The money is a small apart of the hurt I feel. I can’t believe a company I trusted with the protection of my dear mother would take advantage of my love for my mother. On top of that, a fellow American would treat another American in a dispicable manner. Mr. Dobson, I know as an Employer you have to have integrit to be in business this long. Maybe, this evil business tactic was taken on by an employee without your knowledge, because I want to believe you’re a decent man. I think you should make it right with your customers. The great solution is to have audits of your services by a trusted employee. If people have transparent invoices this will ensure the trust of your customers and the legal solitude of your company to protect from you from letigation. I am a fair man. I believe "let the buyer beware" -my father, a Vietnam War P.O.W., taught me that. I think if he had been here he would of had more than words to say to you about the treatment of my mother. I will take it as a loss and a lesson. I place that affair between you and God. I would like to see you turn this around and make your business the most respected. You know the elderly deserve respect. As Americans we owe it to our country to be the standard for civilized Christian behavior. This is what Al Queda wants. For Americans to be desperate for finances and prey upon each other. That is not the American way.

    Thank You,
    David Martinez

  16. eveadam

    oh the stories I could tell. I used to work there. trust me these people are far from honest. Trainings are held with teachings of how to get the most money out of customers. Technicians are ridiculed if they simply go out and do a tune up and dont FIND SOMETHING wrong that they can charge the customer for. The place is a revolving door. Management likes to pride themselves on being fair and good Christians…while they scream and curse and yell in your face and throw things across the room and at employees. Thinking of that place and its normal day to day activities makes my stomach hurt.

    Phillip founded a great company – Brett has decided to go another direction with it.

  17. smithkline

    A scam has been found in the air conditioning company. The business of the AC and its repair is to be carried out with full attention. The repairs are to be carried out at the <a href="http://www.acrepair-miami.com&quot; rel="dofollow">
    A/C Repair Miami</a> at the cheaper crates.

  18. Joseph

    There has been a news about the scam in the air conditioners. The business of the AC sales and repairs is to be done with the great care. The AC’s are best repaired in the <a href="http://www.acrepair-palmbeach.com&quot; rel="dofollow">
    AC repair Palm Beach</a>. They offer a very good service and are having a good record of serving the people. Thanks for the service and their rates are also considerable.

  19. exemployee

    This place is a total scam, Oh and the comments from "Brian Standoffer" is an employee that works there, He’s actually a supervisor there. All I have to say is RUN!!! This company pays there employees strictly commision and if they don’t meet there numbers as they call it they fire you very violently. They treat there employees there just as bad as there customers! There turn over rate is extremely high and wonder why they can’t keep good technicians working there. There constantly pounding sales tactics in there heads and having there jobs threatened if they don’t. Just run from this place as far as employment and customers go!!

  20. Air Duct Cleaning Broward

    The scam has been detected in the air conditioners company. The business is to be carried out with a lot of care and necessity is that the team should be loyal to the boss. The Ac requires the cleaning of its ducts and Air Duct Cleaning Broward is providing the best service for the cleaning of the ducts.

  21. jeff

    Seeing all these comments and Mr. Hobson’s attempt to defend his boy’s deceptive practices makes me cringe. Hobson’s sales and service were inflicted on my parents back in 2008. After many phone calls and finally threats to have my complaint published in the Dallas paper, Brett himself came to the house to see the mess his people made. I did eventually get back the money Hobson’s scammed out of my parents but it took a while. I’m convinced that my mom was suckered in by the $79 checkup coupon and once Hobson’s people get into the house, it’s all downhill from there. Please warn your friends and family about these people. I was glad to see Maxwell take Hobson to court and win. I’m sorry to see that Hobson’s must have gotten lucky and found a problem–most of their techs seem to have never touched an a/c unit!

  22. Air Duct Cleaning Fort Lauderdale

    Some scam has been detected in the air conditioning company. The business is to be carried out with the full attention. I have sent my AC to the Air Duct Cleaning Fort Lauderdale for the cleaning of all its ducts. They have given the best service to me so far.

  23. josephkline

    The judge has found that some heating and air conditioning company is involved in some scam. The ducts of the heating and cooling units are to be cleaned from time to time. The <a href="http://www.miami-airductcleaning.com&quot; rel="dofollow"> 
    Miami Air Duct Cleaning</a> doing the best service for the cleaning of the ducts.

  24. babyelle

    This string of joyous comments could roll forever and I could go on a long rant about Hobson being the worst company I have ever had the pleasure of being totally raped by…but they dont care. If anyone gets to my comment after reading all the others above…and carefully considering the replies by Hobson and their plants and still calls them out to do any service for them…I would suggest that you might have a carbon monoxide leak in your unit and should have your brain patched up. I strongly urge anyone to consider all options including window units before calling Hobson to air conditioin your wallet. This is a circus no one wanhts to be a part of!!!

  25. R.G.

    None of these complaints surprises me. Why you might ask?
    I am a former service technician for Comfort Experts / Hobson.

    These people are scammers. I was out of work and found an advertisment posted by Comfort Experts for service techs and that they would train. So, I figured why not, I had a background in electronics so I figured I would do okay. I mean they advertise their techs make up to 100,00 a year and this would be just what I needed to provide for my family and get myself out of the large debt I had accumulated.
    First came a general group meeting to tell you about the company and give them an opportunity to run a background check on me. I was okay with that since I am a standup guy. During this meeting, you are told the only facial hair you can have is a gay looking mustache. The next step was a group interview with some of the managers and technicians to see if you are acceptable to them. The team leader Ralph, showed us part of the film "Glengarry Glen Ross". Very bizarre. I made the "cut" and began training. Fast forward six weeks and I am now a full fledged HVAC technician who is given a broke down van with no air conditioning (ironic). Sent out in the field with no EPA certification. This is a full commision position where I am expected to sell – sell – sell anything I can sell. The more the better. I stuck with it for three weeks after only taking home 300 a week. I couldnt be a scammer – sorry. They are just out to gouge the consumer out of as much money as possible no matter what.

  26. R.G.

    Wait I’m not finished yet.

    During the weekly meetings, the team leaders tell you your a peice of shit and worthless because you aren’t performing. What a way to build a team.
    They contacted me to try and collect for the school that I signed up for a couple of times.
    I told them to kiss my butt.

    Anyway, be sure that whoever you use for HVAC service, that their techs are not paid on commision to start with.

    Good luck.

  27. JB

    The company is still scamming. Got a phone call from 877-224-3648. They said they were referred by someone I’ve never heard of.

    The hook is a $79 furnace checkup because of the oncoming winter season.

    Why would a friend of mine refer me to a company for a cheap tune up when all my friends know I just got a brand new unit last year from a reputable company?

  28. Texas Gal

    This company is a scam! I used to work there! All they care about is getting the tech in the home to change their minds. They use very bad ways of making money. Hanging flyers on people’s doors..scaring them.

  29. SUckerPunch

    Recently I recommended Comfort Experts to my husband who has 3 rental properties. The appointment was scheduled for Saturday morning. According to the dispatcher the appointments for the 3 houses were first and that the technician would be out around 0800 at the first house. Around 10:00 the technician arrives at the first house, does some tinkering and tells my husband one of the parts is bad…that part is replaced. The technician does some other tinkering and informs my husband the part replaced did not fix the problem and that the heat exchanger is bad. He told my husband he should replace the entire unit. They proceed to the next rental house (where my parents live). The technician does some tinkering again and then states that a circuit board needs to be replaced. The cost is around $650, but for a few hundred more he could have a new unit. Due to the tenant of the 3rd rental property become irate at waiting around well beyond his appointment time slot, that appointment was cancelled.
    Which brings me to my concern of them doing “shot gun” maintenance and purposely damaging parts so customers have to pay for costly repairs.

    Each and every time they have come out to my own house, I have had some part “fail” and have had to pay to replace the parts. I have questioned it before and the technician seems to always have the answer. I can see where there is a single incident every six months (one for air conditioners and one for heaters) you may not think of the cost incurred. After all it is another year gone by and the unit is another year older. However, the eye opener was the rental properties. The $650 circuit board replacement by Comfort Experts, is only a $150 part.

    When I emailed Comfort Experts to cancel my routine service agreement, I received an email from the Production Manager with Comfort Experts. Stating “this kind of situation gives me an opportunity to teach our technicians a better way of examining heating and air conditioning systems”. He also wanted to meet with the company who evaluated the system after Comfort Experts “if that would make me feel comfortable”.

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