County Warns Consumers To Deal With Licensed Home Improvement Contractors

st.home.pr 97-130 Contact: Sue Rogan, (301) 217-7391

COUNTY WARNS CONSUMERS TO
DEAL WITH LICENSED HOME
IMPROVEMENT CONTRACTORS For Immediate Release (April 28, 1997)

County Executive Douglas M. Duncan today launched Montgomery County's
campaign to alert consumers to the dangers of doing business with unlicensed home
improvement contractors. Conducted by the County's Division of Consumer Affairs, the
consumer education campaign includes distribution of a flyer that warns homeowners of the
dangers of dealing with unlicensed home improvement contractors and the publication of a
brochure called, "Guide to Home Improvement."
"Consumers lose hundreds of thousands of dollars each year from incomplete,
abandoned or poorly performed home improvement projects," said Duncan. "If you want to
gamble, gamble on the lottery, don't gamble on an unlicensed home improvement contractor."
Maryland law requires home improvement contractors to be licensed by the Maryland
Home Improvement Commission (MHIC). The licensing requirement protects consumers by
ensuring that contractors have been screened for criminal activity; have financial solvency;
have at least two years trade experience; and have passed a test on the home improvement
law and general business competency. In addition, licensed contractors are required to make
a bi-annual payment to the Home Improvement Guaranty Fund. This fund reimburses the
consumer if they have a dispute with a licensed contractor and the Commission finds in the
consumer's favor.

HOME IMPROVEMENT CONTRACTORS 2-2-2

The Division of Consumer Affairs is also asking local newspapers to run a disclosure
in the classified section of their newspapers stating that Maryland law requires home
improvement contractors to be licensed and that consumers who do business with a licensed
contractor are protected by the Maryland Home Improvement Guaranty Fund. In addition,
Consumer Affairs is asking newspapers to require home improvement advertisers to list their
MHIC license number.
Consumer Affairs offers these tips concerning home improvement work:
Find out if the firm is licensed, and how long it has been in business.
Get multiple estimates.
Check with Consumer Affairs and/or the Better Business Bureau to see if any
complaints have been filed against the contractor.
Beware of any contractor who solicits your business by claiming they have leftover
material and will perform the service at a reduced charge.
Ask the contractor for the names of suppliers he deals with and for names of previous
customers who live in your area.
Don't rely on verbal promises.
Don't sign any contract unless you understand all the terms.
Don't advance full payment for the work, and inspect the job carefully before making
final payment.
(more)

HOME IMPROVEMENT CONTRACTORS 3-3-3

"If a problem develops with a contractor, try to resolve it with the company," said
George Rose, Consumer Affairs Administrator. "If you can't, contact the Home Improvement
Commission or the County's Division of Consumer Affairs."
For more information call the Maryland Home Improvement Commission at (410)
333-6309 or the Consumer Affairs Division at (301) 217-7373.
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