Contractors Board Warns Los Angeles Area Consumers About Unlicensed Contractors

LOS ANGELES -- The Contractors State License Board is warning consumers about the dangers of hiring unlicensed contractors during National Consumer Protection Week (February 2-8, 2003). The CSLB has found that the most common complaints against contractors can be avoided when consumers understand and exercise their rights and responsibilities.

A recent blitz of CSLB undercover sting operations conducted in the Los Angeles area underscored the risk of hiring unlicensed contractors. At stings in Pasadena and Oxnard on February 4 and 5, a total of 53 suspected unlicensed contractors were cited for contracting without a license.

The CSLB undercover operatives invited suspected unlicensed contractors to secret sting houses. When they bid on jobs -- ranging from tilework, painting and roofing to landscaping and fencing -- and were found to be unlicensed, 45 were issued Notice to Appear (NTA) misdemeanour citations and ordered to appear in municipal court. Thirty-three of the NTA's were issued to unlicensed contractors at the Oxnard sting; 12 were issued to phony contractors at the Pasadena sting. Eight received administrative citations.

By law, all contractors who perform work that totals $500 or more (labor and materials) must be licensed by the CSLB.

The CSLB has found that the most common complaints against contractors can be avoided when consumers understand and exercise their rights and responsibilities, including:

• The right to hire licensed contractors
• The right to check a contractor's license with the CSLB
• The right to pay only 10 percent or $1,000, whichever is less, as a down payment
• The right to a written contract that specifies project costs, the down payment, a payment schedule, and start and completion dates.

A recent statewide survey revealed that a majority of homeowners do not know that by law a contractor cannot ask for more than 10 percent or $1,000 down, whichever is less. A few of the contractors who were nabbed in the last two days asked for excessive down payments.

Consumers need to be aware they have the right to negotiate a clear home improvement contract. These financial elements protect consumers in a number of important ways: the total cost of the project (labor and materials) is clearly stated, which eliminates misunderstandings about the final price, and a lawful down payment and payment schedule ensures that consumers do not pay for work or materials that have not been completed or delivered.

The Contractors State License Board operates under the umbrella of the California Department of Consumer Affairs. The CSLB licenses and regulates California's 278,000 contractors, and investigates 25,000 complaints against contractors annually

News Release - April 19, 2004

Criminal Contractor Sentenced to Prison for Elder Fraud Ordered to pay $187,000 in Restitution SACRAMENTO --An investigation conducted by the Contractors State License Board (CSLB) has resulted in the sentencing of a transient criminal. Albert Ralph Hedger, who posed as a landscaper and illegally took $187,000 from an 84- year-old woman, was sentenced in Sacramento Superior Court on April 14 to four years in state prison and ordered to pay $187,000 in restitution. The investigation was initiated by the Sacramento County Adult Protective Services and pursued by the CSLB. The Sacramento County Sheriff's Department arrested Hedger in February on an unrelated drug warrant, as well as a warrant for burglary involving an elder. At a hearing to reduce bail, Hedger's bail was raised from $50,000 to $100,000. On March 15, Hedger pleaded guilty to burglary involving theft from an elder and was ordered to pay his elderly victim $187,000 in restitution. In March of 2000, the elderly widow was pulling weeds in the front yard of her North Sacramento home when Albert Ralph Hedger rode up on his bicycle and offered to weed the yard for $5 in gas money. Hedger then offered and was hired to do more work around her yard, including replacing a wooden flower box, trimming a tree, and repairing the sprinkler system. An industry expert estimated that the work Hedger did on the flower box was worth no more than $900. Hedger calls himself a handyman and painter and admits that he is unlicensed and takes payments"under the table." Anyone who performs contracting work that totals $500 or more must be licensed by the Contractors State License Board. Over the next nine months, Hedger told the woman one story after another to swindle more money from her. He often said he needed money for truck repairs, so he could haul building materials to her house or that he needed to get his truck or his girlfriend's car out of impound. At one point, he said that he needed to pay a fee for a job examination and work boots. None of his stories were true, and the woman wrote checks to Hedger almost every day from two bank accounts, totaling $187,000. The CSLB urges senior homeowners to beware of solicitors and to follow these tips before hiring a contractor to perform any kind of work around their house or yard: Hire only licensed contractors Don't be rushed or pressured into making a decision to hire a contractor Check the contractor's license on CSLB's Web site at www.cslb.ca.gov Get a written contract and don't sign it until you understand the terms Review the contractor's offer and contract with a neighbor, friend, or relative Do not pay more than 10 percent down or $1,000, whichever is less Do not let payments get ahead of the work Get three bids and check references Do not pay cash Order free consumer publications on CSLB's Web site at www.cslb.ca.gov. The Contractors State License Board, which operates under the umbrella of the California Department of Consumer Affairs, licenses 278,000 contractors in California and investigates 25,000 complaints against licensed and unlicensed contractors annually.

REPORT UNLISENCED CONTRACTORS TO:

http://www.cslb.ca.gov/forms/hotleadref.pdf

News Release - April 1, 2004

CSLB Advises Homeowners to Spring Into Home & Garden Projects Responsibly SACRAMENTO--Springtime has officially arrived in California, and for most homeowners, that means it's home and garden project time. The warm, sunny weather beckons us outdoors, to backyards desperately in need of decks or landscaping, or shines a light on kitchens and bathrooms that need major remodeling, not just a good spring cleaning. But before you hire a contractor for that exciting new project, the Contractors State License Board (CSLB) has some words to the wise: don't let your dream project turn into a spring remodeling horror story. Do your "home improvement homework" and take responsibility for your project. Check out your contractor on the CSLB Web site at www.cslb.ca.gov – verify that the contractor is licensed, that the license is in good standing, and that the contractor is qualified to perform the work your project entails. Every day, the CSLB hears from California homeowners whose dream projects turned into nightmares. CSLB investigates 25,000 complaints against licensed and unlicensed contractors annually. Problems brought to the CSLB range from inability to reach the contractor or to get them to show up, to poor workmanship, to outright project abandonment. For example, a $73,000 home remodeling job cost a Santa Rosa couple an additional $84,000 in repairs and mold damage remediation. They hired a contractor to build an addition, including a bathroom, to their home. After the job was complete and the contractor was paid, mold began appearing in the bathroom. Treatments failed to correct the problem, and the contractor told the homeowners that they just needed to open the window when they showered. However, an investigation revealed numerous structural defects, including blocked vents and vapor barriers installed backwards. And in San Diego, more than 15 homeowners were ripped off by two unlicensed contractors operating Bayshore Industries, a sunroom business that promised to build expensive conservatories. The pair, who recently pled guilty to two felony counts of grand theft, were ordered to serve probation and pay more than $160,000 in restitution to their victims. Their M.O.: getting homeowners to agree to pay for materials and work that was never delivered. Sometimes up to 90 percent of the entire project price was collected and no work was done. The contractors illegally used someone else's contractor's license number. A quick check of CSLB's Web site would have shown there was no license issued to the phony contractors or the business. Consumers should beware of contractors whose license numbers don't match up with the business name and personnel. The written contract should specify that no more than 10 percent or $1,000, whichever is less, will be paid as a down payment, and it should include a payment schedule that ties payments to completed phases of the project. In Santa Barbara, an unlicensed contractor established a pattern of contracting to install custom fences, claiming to need additional money, and then abandoning jobs altogether. In one case, he collected a down payment, and once the posts were set, he quit work on the job and collected extra money three more times before finally abandoning the job. The homeowner was forced to hire another contractor to finish the fence – and to pay twice for the job. The CSLB is filing criminal charges against the contractor. Homeowners should take their time in interviewing and selecting contractors for jobs large and small. Make sure the contractor has the experience and qualifications to competently perform the job. Ask for references, and check with them about the contractor's willingness to answer questions, address concerns, and correct problems. A Butte County contractor was arrested and charged with grand theft for, among other things, building a deck when he was hired to build a sunroom addition. The CSLB urges homeowners to be specific in their written contract about the work to be done, including the materials that will be used.