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Legislation requires contractors to register with state
Friday, October 10, 2008

The General Assembly has approved legislation that will require all home improvement contractors and salespersons to register with the state Bureau of Consumer Protection.

It also will create a database of reputable contractors to help consumers.

Gov. Ed Rendell is expected to sign it into law soon.

State Rep. Keith McCall, D-Carbon, a major sponsor of the legislation, said it will require contractors to provide information such as license number, and partnership/corporation and liability information.

All applicants must pay a $50 registration/renewal fee every two years and provide a statement disclosing any fraudulent activity or Commonwealth court action, including any revocation or suspension of right to work.

Mr. McCall said the legislation requires the bureau to operate a toll-free phone number that consumers can call to check on registration. It also requires contractors to include their registration number on contracts, advertisements and business cards.

"The goal here is to make sure dishonest contractors know they are not welcome in this state," he said. "We've heard too many horror stories about dishonest contractors taking down payments and never showing up, or, even worse, tearing a house apart and disappearing -- forcing consumers to hire another contractor while seeking legal recourse and attempting to reclaim damages from someone who simply put a new sign on his truck and moved on.

"It's long overdue that we give people the tools they need to protect themselves and give the vast majority of contractors who are reputable a way to prove that trust to new customers."

The American Association of Retired Persons, citing 2005 data, said Americans spend more than $118 billion every year on home improvements and that one in five homeowners report bad experiences with contractors.

According to the Bureau of Consumer Protection, studies have shown that older homeowners -- those who have older homes and are less likely to personally undertake repairs -- are more likely to fall victim to home improvement scams. Out of 4,567 senior citizen complaints filed with the bureau in 2005, 462 concerned home improvement contracts.

The bureau said reports of home improvement fraud were the No. 1 complaint filed by senior citizens. It said such fraud recently replaced automobile fraud as the No. 1 complaint it receives.

Pennsylvania is the 45th state in the nation to regulate home improvement contractors, said Mr. McCall, adding that states with such laws report home improvement fraud has declined. He said many of those fraudulent contractors have migrated to states with lax home improvement regulations and laws, including Pennsylvania.

"Not surprisingly, contractors themselves have been very much in favor of registration," Mr. McCall said. "The good contractors will benefit, because they know that homeowners armed with knowledge will immediately know a registered contractor can be hired with confidence."

Lawrence Walsh can be reached at lwalsh@post-gazette.com or 412-263-1488.
First published on October 10, 2008 at 12:00 am
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