Contact: Sue Tucker, 240-777-6530
For Immediate Release: July 25, 2002

County Warns Consumers About Dangers
Of Doing Business with Unlicensed
Home Improvement Contractors

Since summer is the busiest season for home improvement work, the Montgomery County Division of Consumer Affairs (DCA) warns consumers to always use a licensed home improvement contractor.

“Consumers are outside the home more in the summertime and notice more problems,” said George Rose, DCA chief. “They may want to replace old windows and doors, remodel a kitchen, or repair an old roof.”

Maryland law requires that home improvement contractors be licensed by the Maryland Home Improvement Commission. To obtain a license, a contractor must have two years of trade experience, provide proof of financial solvency, and pass a test on the home improvement law and general business competency. Contractors are also screened for serious criminal convictions.

DCA warns consumers that even licensed home improvement contractors may encourage consumers to undertake expensive renovations by promising “easy credit.” The contractor may not fully explain all the terms of monthly financing arrangements, including the amount and rate of interest the consumer must pay.

Before signing a contract for any home improvement work, the DCA, a division of the County’s Department of Housing and Community Affairs, urges consumers to follow these steps:

1. Find out if the firm is licensed and how long it has been in business. Call the Maryland Home Improvement Commission in Baltimore at 1-410-230-6309 or go online to http://www.dllr.state.md.us/ for this information.

2. Get more than one estimate. Make sure price comparisons are for the same procedures and materials.

3. Check to see if the merchant has any complaints filed against it, by calling:

--the Montgomery County Division of Consumer Affairs at 240-777-3636 or check online at http://hca.emontgomery.org/consumer;

--the Better Business Bureau at 202-393-8000 or online at www.dc.bbb.org; and

--the Maryland Home Improvement Commission at 410-230-6309 for this information.

4. Beware of any contractor who solicits business by saying that they “have materials left over from another job in the area and can give you a real good price.” This is a classic sign of an unlicensed contractor.

5. Don’t rely on verbal promises. State law requires a written contract that must contain the contractor’s name, address, and home improvement license number.

6. Don’t pay in full for work in advance. State law prohibits the contractor from accepting more than one-third of the cost as an initial deposit.

7. Be clear on the terms of payment. If the amount is being broken down into monthly payments, determine the interest rate and number of payments. Find out if your home is going to be the collateral for the lien.

For further information on home improvements or other consumer questions, contact DCA at 240-777-3636 or http://hca.emontgomery.org/consumer. To speak with a Spanish speaking representative, contact Myriam Torrico at 240-777-3627.