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Public Act 101-0264 | ||||
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AN ACT concerning business.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Home Repair and Remodeling Act is amended by | ||||
changing Section 20 and adding Section 22 as follows:
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(815 ILCS 513/20)
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Sec. 20. Consumer rights brochure.
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(a) For any contract over $1,000, any
person engaging in | ||||
the business
of home repair and remodeling shall provide to its | ||||
customers a copy of the
"Home Repair: Know Your Consumer | ||||
Rights" pamphlet prior to the execution of any
home repair and | ||||
remodeling contract. The consumer shall sign and date an
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acknowledgment form entitled "Consumer Rights Acknowledgment | ||||
Form" that states:
"I, the homeowner, have received from the | ||||
contractor a copy of the pamphlet
entitled 'Home Repair: Know | ||||
Your Consumer Rights.'" The contractor or his or
her | ||||
representative shall also sign and date the acknowledgment | ||||
form, which
includes the name and address of the home repair | ||||
and remodeling business. The
acknowledgment form shall be in | ||||
duplicate and incorporated into the pamphlet.
The original | ||||
acknowledgment form shall be retained by the contractor and the
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duplicate copy shall be retained within the pamphlet by the | ||||
consumer.
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(b) For any contract for $1,000 or under, any person | ||
engaging in the
business
of home repair and remodeling shall | ||
provide to its customers a copy of the
"Home Repair: Know Your | ||
Consumer Rights" pamphlet. No written acknowledgment
of | ||
receipt of the pamphlet is required for a contract of $1,000 or | ||
under.
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(c) The
pamphlet must be a separate
document, in at least | ||
12 point type, and in legible ink. The pamphlet shall
read as | ||
follows:
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"HOME REPAIR: KNOW YOUR CONSUMER RIGHTS
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As you plan for your home repair/improvement project, it is | ||
important to
ask the right questions in order to protect your | ||
investment. The tips in this
fact sheet should allow you to | ||
protect yourself and minimize the possibility
that a | ||
misunderstanding may occur.
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AVOIDING HOME REPAIR FRAUD
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Please use extreme caution when confronted with the following | ||
warning signs of
a potential scam:
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(1) Door-to-door salespersons with no local connections | ||
who offer to do
home repair work for substantially less than | ||
the market price.
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(2) Solicitations for repair work from a company that lists |
only a
telephone number or a post-office box number to contact, | ||
particularly if it is
an
out-of-state company.
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(3) Contractors who fail to provide customers references | ||
when requested.
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(4) Persons offering to inspect your home for free. Do not | ||
admit anyone
into your home unless he or she can present | ||
authentic identification
establishing his or her business | ||
status. When in doubt, do not hesitate to
call the
worker's | ||
employer to verify his or her identity.
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(5) Contractors demanding cash payment for a job or who ask | ||
you to make a
check payable to a person other than the owner or | ||
company name.
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(6) Offers from a contractor to drive you to the bank to | ||
withdraw funds to
pay for the work.
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CONTRACTS
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(1) Get all estimates in writing.
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(2) Do not be induced into signing a contract by | ||
high-pressure sales
tactics.
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(3) Never sign a contract with blank spaces or one you do | ||
not fully
understand. If you are taking out a loan to finance | ||
the work, do not sign the
contract before your lender approves | ||
the loan.
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(4) Remember, you have 3 business days (or as provided in | ||
Section 22 if you are age 65 or older) from the time you sign |
your
contract
to cancel any contract if the sale is made at | ||
your home. The contractor cannot
deprive you of this right by | ||
initiating work, selling your contract to a
lender, or any | ||
other tactic.
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(5) If the contractor does business under a name other than | ||
the
contractor's
real name, the business must either be | ||
incorporated or registered under the
Assumed Business Name Act. | ||
Check with the Secretary of State to see if the
business is
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incorporated or with the county clerk to see if the business | ||
has registered
under the Assumed Business Name Act.
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(6) Homeowners should check with local and county units of | ||
government to
determine if permits or inspections are required.
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(7) Determine whether the contractor will guarantee his or | ||
her work and
products.
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(8) Determine whether the contractor has the proper | ||
insurance.
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(9) Do not sign a certificate of completion or make final | ||
payment until
the
work is done to your satisfaction.
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(10) Before you pay your contractor, understand that the | ||
Mechanics Lien Act requires that you shall request and the | ||
contractor shall give you a signed and notarized written | ||
statement (known as a "Sworn Statement") that lists all the | ||
persons or companies your contractor hired to work on your | ||
home, their addresses along with the amounts about to be paid, | ||
and the total amount owed after the payment to those persons or | ||
companies. |
Suppliers and subcontractors have a right to file a lien | ||
against your home if they do not get paid for their labor or | ||
materials. To protect yourself against liens, you should demand | ||
that your contractor provide you with a Sworn Statement before | ||
you pay the contractor. You should also obtain lien waivers | ||
from all contractors and subcontractors if appropriate. You | ||
should consult with an attorney to learn more about your rights | ||
and obligations under the Mechanics Lien Act. | ||
Disclaimer: The contents of this paragraph are required to | ||
be placed in the pamphlet for consumer guidance and information | ||
only. The contents of this paragraph are not substantive | ||
enforceable provisions of the Home Repair and Remodeling Act | ||
and are not intended to affect the substantive law of the | ||
Mechanics Lien Act.
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BASIC TERMS TO BE INCLUDED IN A CONTRACT
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(1) Contractor's full name, address, and telephone number. | ||
Illinois law
requires that
persons selling home repair and | ||
improvement services provide their customers
with notice of any | ||
change to their business name or address that comes about
prior | ||
to the agreed dates for beginning or completing the work.
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(2) A description of the work to be performed.
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(3) Starting and estimated completion dates.
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(4) Total cost of work to be performed.
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(5) Schedule and method of payment, including down payment, |
subsequent
payments, and final payment.
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(6) A provision stating the grounds for termination of the | ||
contract by
either party. However, the homeowner must pay the | ||
contractor for work
completed. If the contractor fails to | ||
commence or complete work within the
contracted time period, | ||
the homeowner may cancel and may be entitled to a
refund of any | ||
down payment
or other payments made towards the work, upon | ||
written demand by certified mail.
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(7) A provision stating the grounds for termination of the | ||
contract if you are notified by your insurer that all or any | ||
part of the claim or contract is not a covered loss under the | ||
insurance policy, you may cancel the contract by mailing or | ||
delivering written notice to (name of contractor) at (address | ||
of contractor's place of business) at any time prior to the | ||
earlier of midnight on the fifth business day after you have | ||
received such notice from your insurer or the thirtieth | ||
business day after receipt of a properly executed proof of loss | ||
by the insurer from the insured. If you cancel, any payments | ||
made by you under the contract will be returned to you within | ||
10 business days following receipt by the contractor of your | ||
cancellation notice. If, however, the contractor has provided | ||
any goods or services related to a catastrophe, acknowledged | ||
and agreed to by the insured homeowner in writing to be | ||
necessary to prevent damage to the premises, the contractor is | ||
entitled to the reasonable value of such goods and services. | ||
Homeowners should obtain a copy of the signed contract and |
keep it in a safe
place for reference as needed.
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To file a complaint against a roofing contractor, contact | ||
the Illinois Department of Financial and Professional | ||
Regulation at 312-814-6910 or file a complaint directly on its | ||
website.
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IF YOU THINK YOU HAVE BEEN DEFRAUDED OR YOU HAVE QUESTIONS
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If you think you have been defrauded by a contractor or | ||
have any questions,
please bring
it to the attention of your | ||
State's Attorney or the Illinois Attorney General's
Office.
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Attorney General Toll-Free Numbers
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Carbondale (800) 243-0607
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Springfield (800) 243-0618
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Chicago (800) 386-5438".
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(Source: P.A. 100-670, eff. 1-1-19 .)
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(815 ILCS 513/22 new) | ||
Sec. 22. Senior citizen; right of cancellation. A person | ||
age 65 or older who purchases home repair or remodeling | ||
services from an uninvited solicitor may cancel any contract | ||
with a person engaged in home repair or remodeling by notifying | ||
that person within 15 full business days following the day on | ||
which the contract was signed if the agreement for the home | ||
repair or remodeling was made at the home of the purchaser.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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