NEWARK
– Attorney General Paula T. Dow and
the State Division of Consumer Affairs have
filed suit against a chimney cleaning and
repair company accused of using high-pressure,
deceptive tactics to mislead consumers –
including several who were elderly or had
disabilities – into paying thousands
of dollars for repair services they did
not need.
The
company is accused of performing shoddy
work that created the danger of carbon monoxide
leaks into the homes. In some cases, the
company allegedly failed to perform the
contracted-for work at all.
Through these and other unconscionable business
practices, All Care Chimney Corp, of Levittown
and Bethpage, N.Y., and Michael Lyon, its
president and sole owner, violated New Jersey’s
Consumer Fraud Act, the Contractors’
Registration Act, Regulations Governing
Home Improvement Practices, and Regulations
Governing Contractor Regulations, according
to the State’s eight-count civil complaint,
filed in Middlesex County.
“We
allege not just that these defendants performed
substandard, incompetent and dangerous work,
but that they pressured consumers who were
elderly, disabled, and vulnerable into paying
thousands of dollars for so-called ‘repairs’
they did not need,” Attorney General
Paula T. Dow said. “With cold weather
season rapidly approaching, it is imperative
that we halt such unconscionable activities
and protect consumers from the risk of being
scammed -- or, worse, the risk of their
homes becoming unsafe due to shoddy work.”
Today, Judge Glenn Berman of the Chancery
Division, General Equity Part in Middlesex
County, granted temporary restraints against
the defendants. The temporary restraints,
which took effect immediately and remain
in effect pending a hearing to be held on
November 10, enjoin the defendants from:
-
Violating the Consumer Fraud Act, Contractors’
Registration Act and related regulations;
-
Advertising, offering to sale or selling
Home Improvement Contractor services to
consumers within New Jersey;
-
Removing, selling, transferring or disposing
of any assets, including but not limited
to deposits and monies paid by consumers;
and
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Destroying, concealing, altering, transferring,
disposing or removing any records or documents
related to the advertisement, offer to
sell, or sale of services.
The
defendants also are required to identify
all consumers within New Jersey whom they
provided services to since January 1, 2010
and provide the contracts they had with
identified consumers.
“Consumers
must do their homework before hiring a contractor,
and they must be extra vigilant before inviting
someone to work on their chimney,”
Thomas R. Calcagni, Director of the Division
of Consumer Affairs, said. “The average
consumer is unable to discern whether chimney
repair work is truly necessary, or whether
it's completed properly. Improper work can
result in dangerous, even deadly, carbon
monoxide leaks and fires. Before hiring
a contractor, consumers should call the
Division of Consumer Affairs to learn whether
the business is properly registered, and
whether it has been the subject of previous
consumer complaints.”
According to the State’s complaint,
All Care Chimney engaged in aggressive sales
tactics in New Jersey, including unsolicited
phone calls and door-to-door solicitations.
Sales pitches typically offered chimney
cleaning services costing $39 to $60, but
were followed by alarming claims that the
consumers’ chimneys were in very bad
condition and created an imminent danger
unless the consumers paid for chimney repairs
costing thousands of dollars.
On one occasion, All Care Chimney’s
workers allegedly showed a consumer a piece
of brick, falsely claiming it came from
the consumer’s chimney which was said
to be falling apart. On another, they showed
cellphone photos of a damaged chimney, falsely
claiming that the chimney depicted was the
consumer’s.
Based
on such representations, consumers who initially
expected to pay for a basic cleaning, agreed
to purchase chimney parts and repairs ranging
from $1,800 to $4,800.
The State’s Complaint alleges that
All Care Chimney’s aggressive door-to-door
solicitations included the following incidents:
-
The door-to-door solicitation of an 89-year-old
homeowner suffering from dementia. The
homeowner allowed All Care Chimney’s
workers into his home, after which they
allegedly charged him $4,300 for the installation
of a new chimney liner.
-
The door-to-door solicitation of a 63-year-old
homeowner suffering from a developmental
disability. Upon being told by All Care
Chimney’s workers that they were
there to clean his chimney, the homeowner
allowed them into his home. According
to the Complaint, All Care Chimney's workers
ultimately charged the homeowner $4,800
for the installation of a new chimney
liner and took it upon themselves to fill
out a check from the homeowner's checkbook
that they then presented to the disabled
man to sign.
-
The door-to-door solicitation of an 84-year-old
homeowner who allowed All Care Chimney’s
workers into her condominium, believing
they were hired by her condominium association.
The workers allegedly charged the elderly
homeowner $1,300 for supposed repairs.
As
detailed in the State’s complaint,
many consumers are also alleged to have
experienced problems with their chimneys
after All Care Chimney performed work and
obtained payment.
In
at least one instance, All Care Chimney’s
workers allegedly installed a chimney liner
that was too small, creating the risk that
potentially deadly carbon monoxide would
seep back into the consumer’s house.
In at least three instances, All Care Chimney's
workers allegedly failed to connect appliances
correctly to the chimney liner, causing
a leak of carbon monoxide and other gases
into consumers’ homes.
The
Division of Consumer Affairs arranged for
independent inspections of the homes of
certain consumers who contracted with All
Care Chimney. The inspection of a Princeton
Township home revealed, among other problems,
an exposed open pipe from which carbon monoxide
could escape at the base of the chimney
liner. The inspection of a Highland Park
home revealed, among other things, that
All Care Chimney’s work resulted in
the water heater not being properly connected
to the chimney.
The State’s Complaint further alleges
that All Care Chimney violated New Jersey’s
consumer protection laws regarding transparency
and honesty of home improvement contracts,
and laws requiring permits and inspections
of chimney repair projects.
Under the Contractors’ Registration
Act and related regulations, home improvement
contracts must include very specific language
as to, among other matters, the work to
be performed, materials to be used, time
period for the work to be completed, cancellation,
and any guaranty or warranty. The law protects
consumers by requiring a written contract
to be prepared and signed prior to the start
of any home improvement work. Despite these
requirements, All Care Chimney allegedly
failed to provide contracts or any other
paperwork before beginning work on consumers’
chimneys.
Under New Jersey law, homeowners and contractors
must obtain municipal permits prior to beginning
certain chimney repair work. They must also
arrange for a municipal inspection after
the work is completed. These requirements
protect consumers who may not otherwise
be able to determine whether chimney repair
work is necessary, or whether it was properly
completed. All Care Chimney allegedly failed
to advise consumers of the permit or inspection
requirements, and failed to arrange for
the permits or inspections on the consumers'
behalf.
The State’s complaint notes that Princeton
Township issued a Notice of Violation and
Notice of Penalty against All Care Chimney
arising from its performance of work without
a permit. Due to All Care Chimney’s
failure to respond to the notices, penalties
of $74,000 accrued
To
date, the Division of Consumer Affairs has
received several complaints from New Jersey
consumers about All Care Chimney and Lyon.
The State is seeking restitution for affected
consumers as well as civil penalties and
reimbursement for the State’s attorneys’
fees and investigative costs. The State
is also seeking heightened penalties under
the Consumer Fraud Act, because some consumers
allegedly victimized by the defendants’
business practices were senior citizens
or persons with a disability.
The
State is further asking the Court to revoke
All Care Chimney’s registration as
a home improvement contractor in New Jersey;
and to appoint a receiver, at the defendants’
expense, to assume control over the defendants’
assets, and to sell or convey assets for
the restoration of affected consumers.
In
addition, prior to the filing of this action,
the Division of Consumer Affairs began administrative
proceedings to revoke the home improvement
contractor registration of All Care Chimney.
Those proceedings are pending.
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.
Follow the Division of Consumer Affairs
on Facebook at www.facebook.com/pages/NJ-Division-of-Consumer-Affairs/112957465445651,
and check our online calendar of upcoming
Consumer Outreach events at www.NJConsumerAffairs.gov/outreach/.
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