Home repair firms to pay $100,000 for violating consumers rights
(Raleigh, NC) – Two home repair companies will pay a total of $100,000 for violating North Carolina consumers’ three-day right to cancel door-to-door sales contracts, Attorney General Roy Cooper announced Monday.
“A high-pressure door-to-door sales pitch can be hard to say ‘no’ to,” Cooper said. “The three-day right to cancel is an important tool because it gives consumers breathing room to rethink certain purchases.”
The Window Pros, a replacement window company located in Statesville, and H.A.R.D Top Asphalt Maintenance, a paving contractor in Pender County, are now under court order to abide by state law on cancellation of contracts. Wake County Superior Court Judge Michael R. Morgan signed permanent injunctions against both companies last week.
North Carolina consumers have the right to cancel most contracts for door-to-door sales or in-home solicitations within three days of signing the contract. Door-to-door sellers are required by law to inform consumers of the three-day right to cancel orally and in writing.
In separate lawsuits filed in 2008, Cooper alleged that The Window Pros and H.A.R.D. Top often failed to tell consumers about their right to cancel, and then made it difficult if not impossible for consumers to cancel contracts with the companies.
Cooper alleged that H.A.R.D. Top and its owner Henry Heil regularly targeted seniors, charging high prices and then performing shoddy work. According to complaints from consumers, Heil showed up at people’s homes in eastern North Carolina and offered to pave their driveways. He sometimes began paving before the homeowner authorized the work and then demanded immediate payment.
An affidavit filed with the lawsuit illustrates H.A.R.D. Top’s practices. A 70 year-old Beulaville woman declined Heil’s offer to pave her driveway, but an hour later H.A.R.D. Top workers began paving her driveway anyway. The woman said that Heil then pressured her into signing a written contract and demanded $16,500. She said Heil would not accept a personal check and forced her to drive to her bank for a cashier’s check.
Under the judgment secured by the Attorney General’s Office, H.A.R.D. Top and Heil must now wait four days after a consumer signs a contract before beginning work to make sure that consumers have time to reconsider and cancel the work if they choose. H.A.R.D. Top and Heil’s work must also meet all local ordinances and paving industry standards. H.A.R.D. Top has also agreed to pay $50,000 for consumer refunds and education.
Cooper’s complaint against The Window Pros alleged that the company made it very difficult for consumers to cancel contracts within the three-day window. For example, homeowners who wanted to cancel their contracts with the company were told that they had to get their cancellation forms notarized first. Under North Carolina law, consumers are only required to sign the form and mail it in, and it does not need to be notarized.
According to complaints from consumers, The Window Pros even threatened to sue some homeowners or place liens on their homes if they cancelled. When some consumers called to cancel, they got an immediate visit from one of the company’s agents who tried to force them to either pay the amount of the contract or sign papers to finance installation of windows on their home. People wound up paying the company thousands of dollars to cancel their contracts.
Under the judgment and settlement announced today, The Window Pros will pay $50,000 for consumer refunds and education. The company must also fully comply with the law that allows consumers to cancel door-to-door sales contracts and make sure that all of its sales agents have been instructed on the requirements of the law.
“If someone comes knocking on your door, offering to work on your home, check them out thoroughly before you say yes,” Cooper said. “And if you decide to go ahead with the work, make sure you know about your right to cancel.”
North Carolina law gives consumers three days to cancel certain purchases or transactions even after you’ve signed a contract and paid your money. For sales of goods or services that take place away from seller’s normal place of business, including door-to-door or in-home sales, consumers have three days to cancel by returning the written cancelation form. The three-day right to cancel does not apply to:
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- Sales for less than $25,
- Sales made entirely over the telephone or through the mail,
- Sales or rentals of real estate,
- Sales of insurance or securities, or
- Sales made after negotiations at the seller’s normal place of business or at a permanent retail shop.
To check out a home repair company or file a complaint against one, North Carolina consumers can call1-877-5-NO-SCAM toll-free within state. Consumers can also file a complaint online at www.ncdoj.gov.
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Press Release Reposted from: http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-Advisories/Press-Releases/Home-repair-firms-to-pay-$100,000-for-violating-co.aspx
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