Shoplifting, Larceny, Robbery, Theft Contractor refusing to do work which was paid for in advance

[Kobaltic]

Jurisdiction

Pennsylvania

My mother hired a contractor to do some work on the house. She paid in advance $7,000. I know she should not have and I would have told her not to. We have a signed contract stating that he would start work Sept. 2024. To this day he has not started or even indicated he bought the supplies needed. He always has some excuse on why he can't make it. We want to press charges but we cannot afford a lawyer. We are looking at what options we have to get the money back.

 

[zddoodah]

My mother hired a contractor to do some work on the house. She paid in advance $7,000. I know she should not have and I would have told her not to. We have a signed contract. . . .

You meant, "She has a signed contract," right? Or are you a party to the contract?

We want to press charges but we cannot afford a lawyer.

"Press charges" refers to criminal prosecution. The county district attorney presses criminal charges. Your mother could reach out to the local DA's office, but I don't see any likelihood of criminal prosecution unless there is evidence that, at the time, your mother made the payment, the contractor intended not to perform. The better option would be a small claims lawsuit, for which an attorney is not needed.

 

[Kobaltic]

Thanks for the information.
I see small claims goes up to $12K but in PA anything over $2K is a felony. I thought that since it was over $2k the DA would press felony charges. I guess I was wrong.

 

[adjusterjack]

Breach of contract is not a crime, it's a civil matter. Prosecutors are not likely to touch it unless it can be proven that the contractor is a habitual fraudster who collects money and never has any intention of doing any work.

Is the contractor licensed? If so, the state's licensing authority may be of help. If not, contact the state anyway as he may be operating illegally.

Meantime, write him up on Yelp. Turning customers away is the best punishment for recalcitrant contractors.

 

[zddoodah]

but in PA anything over $2K is a felony.

As phrased, this statement has no meaning. I recently got a bonus over $2k. Did someone commit a felony?

"Felony" describes a category of crimes. The term has no relevance in a civil lawsuit.

I thought that since it was over $2k the DA would press felony charges.

What is "it"? In order for the DA to press charges, he/she must believe that a crime was committed.

Is the contractor licensed?

Pennsylvania does not generally require contractors to be licensed. Most home improvement contractors have to be registered and carry minimal insurance, but there's no bonding requirement.

 

[army judge]

My mother hired a contractor to do some work on the house. She paid in advance $7,000. I know she should not have and I would have told her not to. We have a signed contract stating that he would start work Sept. 2024. To this day he has not started or even indicated he bought the supplies needed. He always has some excuse on why he can't make it. We want to press charges but we cannot afford a lawyer. We are looking at what options we have to get the money back.

Read the following, help might be available.

Your State has laws to protect seniors and others.

A Consumer’s Rights Under Pennsylvania’s Home Improvement Consumer Protection Act.

In 2009, Pennsylvania enacted the Home Improvement Consumer Protection Act (“HICPA”) to protect consumers from unfair trade practices and fraudulent home improvement contractors. Prior to 2009, con…

blog.princelaw.com

https://www.attorneygeneral.gov/wp-content/uploads/2018/01/Act_132_Home_Improvement.pdf

CIVIL AND CRIMINAL PENALTIES

A person commits an offense of home improvement fraud if the person makes a false or misleading statement, misrepresents or conceals the contractor's identifying information, damages a person's property to solicit that person to enter into an agreement for home improvement services, receives any advance payment for performing home improvement services or materials and fails to perform or provide services or materials when specified, misrepresents himself or another as a government employee, misrepresents the type or cost of a special order item, alters a home improvement contract without the consent of the consumer or directly or indirectly publishes a false or deceptive advertisement.









A violation of the above listed items constitutes a felony in the third degree if the amount involved in the excess of $2,000.00 or a misdemeanor of the first degree if the amount is $2,000.00 or less.


The exception is if the contractor receives any advance payment for performing home improvement services or materials and fails to perform or provide services or materials when specified; the violation constitutes a felony in the third degree if the amount involved in the excess of $2,000.00.


In addition, if the consumer / victim is 60 years of age or older, the grading of the offense shall be one grade higher than specified.

In the event a person commits a second or subsequent offense, the offense shall constitute a felony of the second degree regardless of the amount involved. In addition the court may revoke or suspend the certificate of registration. A person may petition the court for reinstatement after a period of five (5) years.





A contractor must refund the amount paid for a home improvement within ten (10) days of written notice if no substantial portion of the contracted work has been performed at the time of the request and more than forty-five (45) days have elapsed since the start date specified in the contract. In addition, a contractor may not receive a deposit in excess of one-third (1/3) of the total price of the contract, which includes the cost of special order materials, for a contract in excess of $1,000.00.

A violation under this act shall be considered a violation under the Unfair Trade Practices and Consumer Protection Law.

ADDITIONAL RULES AND REGULATIONS:

The Bureau may adopt additional rules and regulations necessary to carry out this act.

PREEMPTION OF LOCAL REGISTRATION:

Registration under this act shall preclude any requirement of the payment of a fee or registration or licensing of any home improvement contractor by any political subdivision. However, registration under this act does not preclude a political subdivision to require building permits and local enforcement of the building code. In addition, this act also does not affect local regulations or standards for liability insurance adopted by a municipality.

EXEMPTIONS:

The act shall not apply to the Commonwealth of Pennsylvania or any of its political subdivisions and the Federal Government.

MISCELLANEOUS:

This new act is designed to provide basic protections to consumers looking to renovate their homes. However, the new act also places significant burdens, costs and restrictions on contractors, including but not limited to registering with the Bureau and revising the form and content of their existing contracts.

As a result of these new requirements for contractors it is encouraged that all contractors seek legal counsel to review the information required by the Bureau and to revise or update existing contracts.

APPLICATION OF NEW LAW:

The HICPA shall apply to all contractors (including subcontractors and independent contractors) that own or operate a home improvement business and perform services at private residences whose revenue exceeds $5,000.00 on an annual basis.

Home improvements shall include repair, replacement, remodeling, demolition, removal, renovation, installation, alteration, conversion, modernization, improvement, rehabilitation or sandblasting. It shall also include the construction, replacement, installation or improvement of driveways, swimming pools, pool houses, porches, garages, roofs, siding, insulation, solar energy systems, security systems, flooring, patios, fences, gazebos, sheds, cabanas, painting, doors and windows and waterproofing and the installation of central heating or air conditioning or storm windows or awnings.

Home Improvements shall not include the construction of a new home, the sale of goods or materials by a seller who does not perform, directly or indirectly, any work related to the installation or application of the goods or materials and the majority of work performed by a landscaper. The exceptions to this rule are any item listed in above paragraph or the placement of retaining walls, fountains or drainage systems.

REGISTRATION:

All contractors must register with the Bureau of Consumer Protection (the 'Bureau') in the office of Consumer Protection if a contract is for $500.00 worth of work or greater and the home improvements are for a consumer in their private residence or their surrounding property. The information on the application depends on the individual applicant and the structure of their individual business (Partnership, Corporation (in or out-of State) or Joint Venture). Generally, the information requested by the Bureau shall be for the ten (10) year period prior to the time of registration. The Bureau may also request additional information prior to the last ten (10) years or request a clarification of the information provided by the applicant.

An applicant must report if they are registered or licensed in any other state or political subdivision. In addition, an applicant shall report any disciplinary action taken in another jurisdiction. In the event such disciplinary action occurred after the initial application, the applicant must report such action on the biennial registration application or within ninety (90) days of final disposition, whichever is sooner.

The information required on the application generally includes the following: name, date of birth, address, telephone, driver's license number, name and address and phone number of the business, social security number and all previously used business names and addresses used by the applicant.

The Bureau also requires a complete description of the contracting business and whether the applicant has ever been convicted of a criminal offense related to a home improvement transaction, fraud, theft, crime of deception or a crime involving fraudulent business practices, as well as a statement whether the applicant has ever filed a petition in bankruptcy or within the last ten (10) years received a final civil judgment entered against the applicant or businesses in which the applicant held an interest that was related to a home improvement transaction.

In addition, the applicant must disclose whether the applicant's certificate or a similar certificate or license issued by another state or political subdivision thereof has ever been revoked or suspended. In the event the applicant's certificate or similar certificate or license has been revoked or suspended, the applicant must provide the current status of the certificate or similar certificate or license. The statement required by this clause shall include the same information with respect to any other business in which the person making application has or has ever had an interest.

The Bureau also requires disclosure if within the last ten (10) years the applicant has ever been suspended or debarred from participating in any Federal, State, Local or Not-for-Profit program through which the public funding or other assistance is provided to owners for home improvements.

RENEWAL OF CERTIFICATION:

All contractors must renew their certificate every two (2) years.

Memorandum Home Improvement Consumer Protection Act

grimlaw.com

 

[Redemptionman]

this is why you never pay a contractor up front, you can pay a portion down to get them started or draws as they complete work but never pay a contractor money until the job is 100 percent finished.