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It is important to be a very
careful consumer when it comes to home improvement
contractors. For instance, I had a case where my client,
an elderly and blind woman, signed a contract and paid
$30,000.00 to a home improvement company that disappeared
with all of her money! Unfortunately, the company was a
scam operation, my client lost her life's savings and it
will take some time in court before my client may ever see
her money again however, her mistake will be a lesson to
all of you because this article explains how to protect
yourself from home improvement fraud.
Before signing any contract
with a home improvement company, first ask that company
for its license number and check it out with your State or
County Consumer Affairs' Business License Division. Find
the License Division on the web or call information and
get their number. You want to find out (1) the name and
address of the company associated with the license number
given to you, (2) if the company is currently licensed and
the license expiration date and (3) whether any complaints
have been made against that company. The answers to those
questions will help you determine if you want to proceed
with signing a contract. Make sure both the contractor and
the company he works for are licensed to work in your
State.
If your going to sign the
contract then make sure certain things are included
pursuant to your understanding and as required by your
State’s Home Improvement Business Law. The contracting
company's name, address and phone number should be printed
on the contract. Also, it is important that the
contracting company's home improvement license number is
printed on the contract and that it is not different from
the number you called and inquired about with Consumer
Affairs. Lastly, make sure that all of the work to be
performed is listed in the contract and that the
approximate start and end dates of work are included. You
should put a penalty clause in the contract regarding the
contractor’s failure to timely complete the work because
contractors are notorious for starting jobs and then
leaving for a few days or weeks to do other jobs while you
sit and wait in your dismantled kitchen for him to return.
Once the contract terms are satisfactory then the contract
should be signed by both you and the company's
representative.
An example of a consumer
protection law is New York’s General Business Law §771
("GBL") requiring all home improvement contracts
shall be in writing and contain certain terms of payment,
fees for services and materials and start and completion
dates, among other terms. GBL §771 is a consumer
protection statute to prevent the misunderstandings
between contractor had consumer and to protect the
consumer from overreaching of the contractor, such as
charging for work that was not agreed upon. GBL §771
limits the contractor who disregards its written contract
requirements to satisfactorily proving to a court each and
every item of work he did and the reasonable value of each
item by detailed invoices, timesheets and proof of hourly
rates, among other proofs. So, if the contractor who
failed to put your home improvement work in writing
attempts to collect $20,000.00 from you, he has to prove
the value of his services in detail before scaring you
into paying an amount you had no idea about. New
Jersey’s Consumer Fraud Act and the Home Improvement Act
protect the consumer even more by denying the contractor
from recovering any monies if he violates any of the
consumer laws AND he will pay three times the amount of
damages (called treble damages) to the consumer for his
failing to obtain proper permits or licenses or any other
violation of those laws.
Lastly, protect yourself by
not paying 100% upfront. Most contracting companies ask
for a deposit upon your signing the contract. I suggest
that you put down as little as possible and arrange a
payment schedule with the company where you will pay a
certain amount as certain work is completed. Of course,
always get a receipt, signed by the company and stating
the date and amount of any monies paid to the company if
you pay anything in cash.
This article is certainly
not all inclusive and is intended only as a brief
explanation of the legal issue presented. Not all cases
are alike and it is strongly recommended that you consult
an attorney if you have any questions with respect to any
legal matters.
Any questions and/or
comments with respect to this topic or any other topic,
contact:
http://www.appellate-brief.com
Law Offices of Susan Chana
Lask
853 Broadway, Suite 1516
New York, NY 10003
(212) 358-5762
Susan Chana Lask, Esq. c
2004
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