The New Jersey Division of Consumer Affairs announced today that, during the second quarter of 2015, it has issued Notices of Violation to 89 contractors, seeking $630,556.42 in consumer restitution and civil penalties. Of the contractors cited during the second quarter of this year, 40 allegedly violated New Jersey law by acting as unregistered contractors. To become registered, a contractor must disclose the physical location of the business and provide proof of a minimum of $500,000 in liability insurance, among other requirements. The majority of the unregistered contractors were also the subject of consumer complaints; the Division has ordered them to pay consumer restitution ranging from $200 to $35,905. Of the 49 registered contractors on the violation list, 23 were the subject of consumer complaints and are ordered to pay restitution between $2,250 and $25,900. The violation list includes another 26 registered contractors who are not the subject of consumer complaints, but were cited for failing to include their registration numbers and/or other required information on advertisements or other documents. Certain contractors on the list have cooperated with the Division of Consumer Affairs by agreeing to Consent Orders for the payment of penalties and, in the case of several unregistered contractors, by applying for registration. The Division has ordered 56 of the 89 contractors to pay a total of $369,236.42 in restitution to consumers for alleged shoddy and/or unfinished work; and has ordered all 89 contractors to pay a total of $261,320 in civil penalties, for a grand total of $630,556.42. During the first half of the year – including these second-quarter totals – the Division has issued violation notices to a total of 120 contractors, seeking a total of $1,028,333.02 in restitution and penalties. Year after year, “Home Improvements” has been the largest complaint category that consumers have filed with the Division of Consumer Affairs. The Division received 1,253 formal consumer complaints about home improvement contractors in 2014, and has received 628 formal complaints to date in 2015. For home improvement projects costing more than $500, the contractor must provide the consumer with a written contract with specific, detailed information including the project's agreed-upon price; the starting and ending dates; the scope of work; the contractor's business name, address, and registration number; and other required information. Each of the contractors receiving a Notice of Violation has the opportunity to contest the assertion that he or she has violated the law, or the opportunity to correct the violation by desisting from any practices in violation of the law, paying a civil penalty and/or consumer restitution where required, and submitting an application for registration, if not registered. Each contractor also may contest the Division's assessment of consumer restitution. Violators of the Contractors' Registration Act are subject to civil penalties of up to $10,000 for the first violation, and up to $20,000 for subsequent violations. Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file an online complaint with the State Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504- 6200.
State Cites 89 Home Improvement Contractors for $631K in Consumer Restitution, Civil Penalties
Newark
New Jersey