07/07/2009
A Consumer’s Guide to the Pennsylvania Home Improvement
Consumer Protection Act
On July 1 2009, residents were given a strong
piece of legislation to protect them against contractor fraud; the Pennsylvania
Home Improvement Consumer Protection Act or HICPA. As this new law directly
affects our business and our customers, we have thoroughly reviewed this
document and abided by all of its rules. We will attempt to run down some of
the key points to educate you against such activities.
- The
law requires that all contractors who perform at least $5,000 worth of
home improvements per year register with the Attorney General's Office.
- As of
July 1, 2009, consumers in
will be able to verify contractor registration with the office of the Attorney
General by visiting their website at
or by calling their toll-free hotline at 1-888-520-6680. (We have called
this number and checked the link to their website and they are both
valid.)
- On the
Attorney General’s website you will find a link to the . The following is our
listing link: .
- For
more helpful information in selecting a contractor, go to the section of their website. We are also
listed here.
Now down to the teeth of this new law.
- Contractors
are required to complete a new registration every two years.
- Registration
Requirements: An individual, general partnership, corporation, Limited
Liability Company and limited partnership all have relatively the same
registration requirements. An applicant must provide: names, home
addresses, telephone numbers, driver's licenses numbers, social security
numbers, and all prior business names and addresses of the home
improvement businesses operated by the individual or each partner,
officer, manager, etc. HICPA provides that the personal information of the
contractor shall not be disclosed to the public, and a home address and
telephone number will only be released to the public if the contractor
uses home contact information for the business.
- HICPA
also requires each applicant, whether it is an individual or a company, to
provide a complete description of the nature of the business and provide a
statement which lists whether he or the company has ever been convicted of
a criminal offense relating to a home improvement transaction, fraud,
theft, deception or fraudulent business practices. Furthermore, each
applicant must disclose any final civil judgments entered against it
relating to a home improvement transaction in the last 10 years, or
whether it has ever filed for bankruptcy.
- HICPA
also requires an applicant to disclose whether a certificate or similar
license issued by another state or township was revoked or suspended by a
court. This provision of HICPA extends to any other business in which the
applicant has ever had an interest, and is not limited to a home
improvement business. In addition, an applicant must inform the Bureau
whether they are registered in another state, and if any disciplinary
action has occurred in that state
- HICPA
also mandates that all contractors obtain and provide proof of liability
insurance covering personal injury and insurance for property damage in a
minimum amount of $50,000.
- Once a
contractor has complied with all of the registration requirements, paid
the $50 fee and obtained its registration certificate, its work is still
not done. Based on the requirements of HICPA, a contractor will in all
likelihood be forced to rewrite all of its contracts prior to July 2009.
This is definitely the case as the Contractors License Number and the
Consumer number for the Office of the Attorney General are now mandatory
on all contracts.
We encourage you to investigate
your contractors thoroughly. The state plans to publicize this law as the days
and weeks move on. We look forward to working with you at .