Home Improvement Scams in NJ: Using the Consumer Fraud Act to Fight Back

Scott Seelagy

Homeowners in New Brunswick, Union City and across New Jersey hire contractors to renovate kitchens, replace roofs, and finish basements. When a contractor takes a deposit, performs shoddy work, or vanishes mid-project, you may have powerful remedies under New Jersey’s Consumer Fraud Act (CFA).

 

Red Flags that Point to Contractor Fraud

  • Large upfront payments with little or no progress

  • Unregistered or unlicensed contractor status

  • Misrepresenting materials or credentials

  • Repeated excuses and missed milestones without documented change orders

Why the Consumer Fraud Act Matters
In addition to breach of contract claims, the CFA provides enhanced remedies when a contractor violates specific regulations or engages in deceptive practices. Proven violations can trigger treble (triple) damages and an award of attorney’s fees. Those remedies level the playing field for homeowners facing serious financial losses.

 

Building a Strong Case

  • Paper the project: Keep the contract, proposals, texts, emails, and photos that show missed deadlines, poor workmanship, or code issues.

  • Verify registration: NJ home improvement contractors must be properly registered. Lack of registration can support CFA claims.

  • Inspect and document: Independent inspections and expert opinions help quantify defects and repair costs.

What About Mechanic’s Liens?
Contractors and subcontractors can file construction liens for unpaid work, but strict procedures apply. If an improper lien clouds your title, you can seek to discharge it. If you’re a contractor who performed quality work and wasn’t paid, following the statute closely is essential to enforce a valid lien.

 

ADR, Settlement, or Trial
Many construction disputes resolve through negotiation or arbitration, especially when contracts include arbitration clauses. If a fair resolution isn’t possible, litigation can recover damages and hold bad actors accountable.

 

What's Next?
If a contractor in New Jersey took your money, abandoned the job, or left dangerous defects, act quickly. Early legal action can preserve claims, address liens, and put you on the path to compensation and proper repairs.