How to Understand Home Improvement Consumer Laws

Home improvement consumer laws protect the rights of consumers working with contractors on home improvement projects. Follow these steps to learn more about them.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Computer with Internet access

1. Understand your right to cancel a contract under consumer laws. If you sign an agreement with a contractor and then change your mind, federal law states that you have 3 business days to cancel the arrangement, provided the contract was signed in your home or at a place other than the contractor's permanent business address.
2. Be aware of your rights regarding your receipt. The law states that your contractor must present you with two copies of a cancellation form along with a copy of your receipt or contract. One copy of the cancellation form is for your records and the other is to return to the contractor, should you choose to cancel. The date and the contractor's name and address must clearly appear on the contract or receipt, along with an explanation of your right to cancel.
3. Know that many states require that contractors be licensed and registered. Request that a contractor show you his current license before signing the contract.
4. Protect yourself from home improvement nightmares. Before hiring a contractor, review his references and check with the Better Business Bureau (see Resources, below) to see if any complaints have been filed against him.

Tips & Warnings

• Should the contractor's work on your home improvement project fail to meet with your approval, first discuss it with the contractor. Make sure that a letter outlining the points discussed is sent via certified mail after your conversation, and ask for a return receipt to prove that the letter was received. Store a copy of the letter in a safe place. It will serve as proof of your conversation should you need to initiate legal proceedings.
• If the contractor refuses to cooperate, consider taking your case to the Federal Trade Commission. The Better Business Bureau is also an option (see Resources, below).
• Understand that if you feel you've been mistreated by a contractor, you may also choose to take him to court. Gather evidence, including letters sent to the contractor and certified mail receipts proving that the correspondence was received, and contact an attorney with experience in consumer law.