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From The KDDK Advantage - August 2006

New Code Against Home Improvement Fraud
By Amy Steinhart

The Indiana General Assembly recently amended the Indiana Code to expand the scope of situations that can be considered home improvement fraud. The amendments include more severe penalties when the fraud is committed against a consumer who is 60 years old or older and the contracted amount exceeds a certain sum. Newly enacted home improvement fraud violations include:

  • Misleading a consumer into thinking there is a threat of fire or structural damage if property is not repaired.

  • Failing to provide a copy of a written warranty or guarantee that states the length of the warranty, the home improvement that is covered by the warranty, or how to make a claim for a repair under the warranty.

  • Using a product that has been diluted, modified, or altered in a manner that would void the manufacturer’s warranty without disclosing to the consumer the reasons for modifying the product and the fact that the manufacturer’s warranty may be compromised.

  • Claiming falsely that the home improvement provider was referred by a contractor who previously worked for the consumer; is licensed, certified, or insured; or has obtained all necessary permits or licenses before starting the home improvement.

Amy Steinhart practices in the areas of business, real estate, family & adoption law and estate planning services.

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