Indiana imposes a number of mandatory obligations on home improvement contractors in order to protect homeowners. Contractors who fail to satisfy these obligations may suffer stiff penalties. Unfortunately, far too many homeowners are unaware of these consumer friendly protections, and they end up getting the short end of the stick. Knowing your rights as a homeowner can make all the difference when disputes arise between you and your contractor.
Some of the most powerful consumer protection laws enacted to protect Indiana home owners include the Indiana Home Improvement Act, the Indiana Home Solicitation Act and the Indiana Deceptive Practices Act. Because contractors are in the best position to know the laws that regulate their business, the law requires them to strictly comply with these laws. Even an innocent violation has the potential to be very costly to a contractor who fails to follow the law.
Under Indiana’s Home Improvement Act, a contractor must use a written contract, must include the name and address of the company and the homeowner, the name and telephone number of the company representative, the date the contract is signed, the estimated start and completion dates, a list of contingencies that might alter those dates, detailed specifications and/or drawings of the work to be performed, the amount to be charged and the terms of payment. The Home Improvement act also requires the contractor to be licensed to perform the work, if a license is otherwise required. Likewise, they are required to pull permits, if permits are otherwise required. Any failure to comply with these obligations may be deemed a deceptive practice, which may result in serious sanctions under Indiana’s Deceptive Practices Act.
Indiana has also enacted a Home Solicitation statute which requires merchants to give consumers a written notice of their right to cancel certain sales transactions within 3 days of the sale. The statute provides that the notice must explain to the consumer what they must do in order to cancel the sale. Generally, this statute applies to any sale for consumer related products or services that exceed $25.00 in value and which are initiated by the merchant. A violation of this act is also deemed a deceptive practice and the sanctions for such violations are administered in accordance with Indiana’s Deceptive Practices Act.
Pursuant to Indiana’s Deceptive Practices Act, violations are either incurable or curable. If the actions of the contractor are part of a scheme, artifice or device to cheat the consumer, then the deceptive act is incurable. This means the contractor has no right to cure and will be subject to sanctions that may include actual damages, punitive damages, fines, and/or attorney fees. All other violations are curable, but a contractor must make an offer to cure and effectively cure in order to avoid sanctions under the act. A consumer may file a complaint if the Contractor fails to cure within 30 days of receiving proper written notice from the consumer.
Homeowners armed with this information will stand a much better chance of protecting themselves when dealing with home repair and home remodeling contractors. Because these laws are consumer protection laws, they are intended to be construed most liberally to protect consumers. With these consumer protection laws, it’s the consumer who holds the hammer. Contractors who find themselves defending a claim under one of these statutes, would be well advised to learn what is technically required to cure the violation and then do it quickly.