A Consumer’s Guide to the Pennsylvania Home Improvement Consumer Protection Act

 

On July 1^st 2009, Pennsylvania 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 Pennsylvania will be able to verify contractor registration with the office of the Attorney General by visiting their website at http://www.attorneygeneral.gov/hiccon.aspx?id=4502 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 Better Business Bureau. The following is our listing link: Better Business Bureau.
• For more helpful information in selecting a contractor, go to the List of Registered Contractors 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 South Hills Electric, LLC.