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
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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
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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. | | |