NEWARK
– With the arrival of the spring home
improvement season, the State Division of
Consumer Affairs intensified efforts against
unregistered home improvement contractors
with an undercover operation at a vacant
Gloucester County home.
This
week, in partnership with the Gloucester
County Office of Consumer Affairs, the Division
filed charges against 18 home improvement
contractors who solicited home improvement
work without complying with state registration
laws. The contractors are being assessed
civil penalties as high as $5,000 each.
Since
2006, the New Jersey Contractors’
Registration Act and Home Improvement Contractor
Regulations require home improvement contractors
to register with the State and obtain a
registration number that begins “13VH.”
To register, a home improvement contractor
must provide proof of liability insurance,
disclose a legitimate business address,
and provide other information about the
business. Contractors must display the registration
number on all contracts, advertisements,
and commercial vehicles as a reference for
consumers.
“Unregistered
and phony contractors rip off hundreds of
New Jersey consumers each year, costing
homeowners thousands of dollars,”
Attorney General Paula T. Dow said. “Requiring
registration with the State ensures that
the contractor is a properly insured and
established home improvement business –
information that every consumer should possess
before inviting a contractor into the family
home.”
The
sting operation took place in mid-March
at a vacant home in Paulsboro provided by
Gloucester County. The contractors, all
of whom advertised home improvement services
on the internet or in local publications,
were invited to inspect the home and provide
proposals for improvements, such as fence
installation, painting, landscaping, carpentry,
and heating and air conditioning work. Estimates
for projects ranged from $1,850 to $15,000.
The
undercover house is part of a continuing
initiative launched by the Division last
month to identify home improvement contractors
operating outside the State’s registration
laws. In addition to the 18 contractors
charged as a result of the sting, the initiative
to date has resulted in the issuance of
76 thirty-day warnings. Those contractors
that receive warnings have 30 days to come
into compliance or face fines up to $10,000
per violation.
“With
over 1,400 consumer complaints related to
crooked contractors last year alone, the
Division of Consumer Affairs, along with
our valued partners in the county and local
consumer affairs offices, is going on the
offensive,” said Acting Director Thomas
R. Calcagni. Calcagni noted that two of
the 18 home improvement contractors caught
in last month’s undercover sting were
based in Pennsylvania. “The message
is simple: If you are performing home improvement
work in this state, you will comply with
the laws of this state. If you refuse to
comply, you will pay.”
The
Division of Consumer Affairs will continue
to target unregistered home improvement
contractors throughout the spring and summer.
The goal is to bring contractors into compliance
with the law, and remind consumers to be
vigilant when they hire contractors to work
on their homes.
Complaints
about dishonest home improvement contractors
are the second-most common that the State
Division of Consumer Affairs received from
consumers in 2010, representing 1,401 of
the 13,761 consumer complaints filed with
the Division.
Of the 18 home improvement
contractors nabbed in the “Undercover
House” sting, a total of 14 are receiving
Notices of Violation this week for soliciting
home improvement work without being registered.
Each is being assessed a $5,000 civil penalty,
with the option of having the penalty reduced
to $1,000 if they apply for registration
within the next few weeks. The remaining
four contractors are registered, but are
receiving Notices of Violation for failing
to display their “13VH” registration
number as required. Each is being assessed
a $500 civil penalty.
Advice
for New Jersey consumers:
Before
hiring a home improvement contractor, New
Jersey consumers are urged to:
-
Obtain the contractor’s State registration
number, which always begins “13VH.”
-
Contact the State Division of Consumer
Affairs to learn whether the contractor’s
registration is still valid. Call the
Division’s License Verification
Line at 973-273-8090,
or check the Division’s database
of all 43,000 registered home improvement
contractors at www.NJConsumerAffairs.gov/LVinfo.htm
.
-
Ask the State Division of Consumer Affairs
whether there are any consumer complaints
filed against the contractor.
-
Demand a copy of the contractor’s
liability insurance policy.
-
Contact the insurer to learn whether the
policy is still valid.
Advice
for home improvement contractors:
To
advertise and perform home improvement work
legally in New Jersey, contractors must
register with the State Division of Consumer
Affairs. Registration materials are available
at www.njconsumeraffairs.gov/HIC/HIC_application.htm
.
Consumers
who believe they have been cheated or scammed
by a business, or suspect any other form
of consumer abuse, can file a complaint
with the State Division of Consumer Affairs
by visiting its website, www.NJConsumerAffairs.gov,
or by calling 1-800-242-5846
(toll free within New Jersey) or 973-504-6200.
Calcagni
thanked Gloucester County and its Office
of Consumer Affairs for use of the Paulsboro
home and their partnership in the undercover
operation.
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