FOR IMMEDIATE RELEASE:
March 31, 2003

FOR FURTHER INFORMATION CONTACT:
Genene Morris (973)504-6327

NEWARK — It's official. Spring is here and with the beginning of the warm season, Acting Attorney General Peter C. Harvey and Consumer Affairs Director Reni Erdos are warning homeowners to be on guard against fraudulent home improvement contractors.

"For many people, their home is their biggest asset," Acting Attorney General Harvey said. "They should do everything they can to protect it from unscrupulous home repair contractors whose sole intent is to defraud them. While there are many home repair contractors who pride themselves on earning an honest living by doing quality work, thereÕs no shortage of fraudulent contractors."

"Home repair fraud is as hardy a perennial as the peonies and daylilies that will soon start blooming in gardens throughout New Jersey," Erdos said. "We are asking people to be alert and to exercise caution when hiring contractors to undertake their home improvement projects to avoid becoming the unwitting victims of home repair fraud."

Here are some important tips consumers should heed before hiring a home repair contractor:

• Shop around by obtaining at least three written estimates.

• Call Consumer Affairs' Consumer Service Center at 973-504-6200 to find out if the contractor you're thinking about hiring has been the subject of consumer complaints and/or legal action by the State.

• Ask your contractor about his or her professional affiliations and confirm the information with the organizations.

• Know the law. New Jersey law requires written contracts on home improvement projects costing more than $200. The contract must include the name and address of the contractor, a start date, completion date and brand names of items to be used in your project. Contractors must also obtain all applicable state and/or local building and construction permits and be able to produce them at your request.

• Make sure all warranties and guarantees are in writing.

• Avoid paying for the entire job up front. One–third in advance, one–third halfway through the job and one–third upon completion is the customary arrangement.

• Investigate financing option. Shop for credit and be sure you understand the annual percentage rate you will have to pay.

• Look for the red flags. Be wary if the contractor tells you that he or she needs a large payment before the home repair work can begin; insists you pay cash; tells you a written contract is not necessary Ð a verbal agreement is enough; or does not have a business address, business card or, in the case of where he or she is offering plumbing or electrical contracting services, cannot produce a state license number.

• If the contractor is offering to do electrical contracting services, call the State Board of Electrical Contractors at 973-504-6410 to ensure that he or she is licensed with that board to do such work.

• If the contractor is offering plumbing services, call the State Board of Master Plumbers at 973- 504-6420 to ensure that he or she is properly licensed to do such work.

To file a complaint against any contractor, call the Division of Consumer Affairs' Consumer Service Center at 973-504-6200. A complaint form will be mailed to you for you to fill out and mail back to Consumer Affairs. You may also log onto Consumer Affairs' Web site to file your complaint online: www.state.nj.us/lps/ca. Click on "complaint forms" and go to Office of Consumer ProtectionÕs online complaint form.