The NJCFA establishes personal liability against contractors to enforce customers’ rights outside the protection of a contract and allows the taking of the owner’s personal assets to deter fraud and misrepresentation in contracts between parties, agreements between sophisticated commercial players, and business-to-business transactions.
The NJCFA requires any contractor doing business with residential and home improvement projects in NJ to have its license number on the customer agreement. The NJCFA also requires an agreement to advise the homeowner of their rights concerning their three (3) day right to cancel the agreement after signing, and to provide a refund of all homeowner’s deposits. The NJCFA additionally requires any agreement to have a number for the Division of Consumer Affairs for a homeowner to report any violations or concerns by a contractor. The NJCFA further provides that a contractor who engages in construction services with a homeowner is required to provide their Certificate of Insurance. In general, the Act protects consumers from unconscionable commercial practices such as fraud, misrepresentation, and deception by people involved in the sale of goods and services, including home improvement contracts. Contractors must comply with the Act and the regulations, or risk costly litigation and monetary penalties. In most cases, a violation of these regulations constitutes a per se violation of the Act and may subject a contractor to triple damages under the Act.
If you are looking for additional details on this topic or if you require advice about your situation, please contact Fredrick P. Niemann, Esq. at (732) 863-9900 or email him at fniemann@hnlawfirm.com. Please ask us about our video conferencing or telephone consultations if you are unable to come to our office.
By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold Township, Monmouth County, NJ Consumer Fraud Attorney
Consumer Fraud Law Attorney Serving These New Jersey Counties:
Atlantic County, Bergen County, Burlington County, Camden County, Cape May County, Cumberland County, Essex County, Gloucester County, Hudson County, Hunterdon County, Mercer County, Middlesex County, Monmouth County, Morris County, Ocean County, Passaic County, Salem County, Somerset County, Sussex County, Union County, Warren County