Home improvement projects can be exciting, but they can also turn into a nightmare if you hire the wrong contractor. Unfortunately, that’s precisely what happened to 13 customers in South Jersey who were allegedly defrauded by South Jersey Home Contracting (SJHC), LLC. The New Jersey Office of the Attorney General filed a lawsuit against SJHC last fall, accusing the company of engaging in deceptive practices. The good news is that justice has been served, and the company has agreed to pay a $442,000 settlement and close its doors for good.
The Allegations Against SJHC
The lawsuit against SJHC, a Woodbury-based business owned by James C. Barreras, Jr. of Cinnaminson, detailed a series of troubling allegations. According to the New Jersey Attorney General’s office, SJHC failed to complete work that customers had contracted and paid for. Moreover, when customers requested refunds for work that had not been performed, the company reportedly refused to provide them. Adding to the complexity, SJHC allegedly failed to pay its subcontractors, despite having received payments from customers for subcontractor labor.
The Financial Impact on Customers
The consequences of SJHC’s actions were severe for the affected customers. Eleven of them were senior citizens aged 60 or older, making the situation even more distressing. In addition to not completing the work, SJHC allegedly imposed charges and fees that were not part of the original contract price.
The Settlement Terms
The settlement reached between SJHC and the state of New Jersey includes several key provisions. SJHC and its owner, James Barreras, agreed to pay $257,000 in restitution to the 13 affected customers. Additionally, they must pay a civil penalty of $185,000. As part of the settlement, Barreras has committed to dissolving the company by the end of the year.
Consequences for SJHC
One of the most significant consequences of this settlement is the permanent revocation of SJHC’s Home Improvement Contractor registration with the state. This ensures that the company will no longer be able to engage in home improvement projects in New Jersey.
Protecting Consumers
Attorney General Matthew J. Platkin emphasized the importance of protecting consumers from unscrupulous contractors. He stated that consumers who invest in home improvements have the right to expect quality work that adds value to their property. The settlement not only holds SJHC accountable for its actions but also provides financial relief to the affected customers.
Legal Violations
The lawsuit against SJHC alleged violations of the Consumer Fraud Act, the Contractor Registration Act, and the Regulations Governing Home Improvement Practices. New Jersey’s Consumer Fraud Act includes enhanced penalties for violations that target senior citizens.
In conclusion, this case serves as a reminder of the importance of thoroughly researching and vetting contractors before embarking on home improvement projects. It also highlights the commitment of legal authorities to protecting consumers from fraudulent practices in the home improvement industry.
