Council Passes Predatory Towing Bill

Here's the full press release:

ROCKVILLE, Md., July 21, 2015—The Montgomery County Council today unanimously approved Bill 17-15 that will limit some of the practices that have led to the predatory towing of vehicles parked on private properties.

The lead sponsor of Bill 17-15 was Councilmember Roger Berliner, who chairs the Council’s Transportation, Infrastructure, Energy and Environment Committee. The bill was co-sponsored by Councilmembers Marc Elrich, Nancy Floreen, Tom Hucker, Sidney Katz, George Leventhal, Craig Rice and Hans Riemer. A public hearing was held on the bill on June 16, and the Public Safety Committee held two worksessions on it.

The provisions of Bill 17-15 will:

• Authorize the County Executive to set flat rates for certain towing services.
• Require towing companies to have personnel available 24 hours a day at impound lots so vehicle owners can retrieve cars at any time.
• Require one notice sign per 25 spaces in parking lots with 100 or more parking spaces, in addition to requiring signs at entrances.
• Require photographic evidence of violations or of events precipitating the towing of a vehicle.
• Prohibit the use of "spotters" to identify vehicles for towing.
• Require towing companies to accept credit cards as well as cash for the redemption of vehicles.

The Council made several amendments to the original bill, including those recommended by the Public Safety Committee. Amendments include a prohibition of "patrol towing" of commercial lots by providing that a towing company "must not monitor, patrol or otherwise surveil commercial property for the purposes of identifying unauthorized parked vehicles for towing and removal."

Other amendments included in the bill will: strengthen the Office of Consumer Protection’s ability to enforce the law; require written authorization for each tow in the form of an authorization form provided in person, or via fax, email, or other electronic means; make contracts between property owners and towing companies more informative as to respective parties’ obligations and liability under the law; and make several changes to more closely aligning the County law with State law.

“Every year there are 30,000 tows from private property in our County. Too many residents have been victims of the unscrupulous business practices of predatory towing,” said Councilmember Berliner. “Towing is an extraordinary act, and it should only be done for legitimate reasons. The bill we passed today will better protect consumers. Notably, it will ban the use of spotters, who are used to identify and tow away vehicles as quickly as possible and it will give the Office of Consumer Protection the powers it needs to enforce the law and protect consumers. And at the same time, the bill was amended to ensure that our HOAs and condo associations, which have worked very hard to set the right balance in their parking policies, are treated differently from the commercial lots where we see the most worrisome predatory practices. This bill will not only help our residents but our businesses as well who lose customers as a result of predatory towing."

The bill also will allow vehicle owners to retrieve personal property from a vehicle that has been towed, but has not yet been released. It sets a maximum $25 fee for “incomplete tows” in situations where a vehicle has been hooked up to a tow truck, but the owner then approaches the truck operator and asks for their vehicle to not be towed.

Another provision in the bill requires property owners who wish to engage in non-consensual towing of vehicles for violating their parking policies to first electronically register their commercial lots and provide annual reports on towing activity, unless the director of the Office of Consumer Protection (OCP) waives the requirement after a finding that Police Department records meet the OCP’s needs for enforcement of the law.

Look Out for Property Tax Scam

Don't fall for a deceptive letter about your property tax. Here's the full press release from our Office of Consumer Protection:

Montgomery County’s Office of Consumer Protection (OCP) is warning property owners not to be fooled by a deceptive letter which encourages consumers to pay $99 to petition to have their property tax assessment reviewed.

This direct mail solicitation gives the false appearance that it is from a state or local government agency, provides a return address that is, in reality, a mail-drop location, and fails to disclose that there is actually no cost for property owners in Montgomery County to personally petition for a tax assessment review.

Information regarding this matter has been reported to the U.S. Postal Inspection Service. Consumers who have provided credit card information or sent checks to this merchant may file a complaint with Montgomery County’s Office of Consumer Protection.

The Maryland State Department of Assessment and Taxation provides information on its website regarding how to file a petition to have a property tax assessment reviewed.

OCP, the County’s consumer protection agency, investigates thousands of complaints each year involving automotive sales and repairs, new home purchases, home improvements, credit issues, retail sales, internet services and most other consumer transactions. OCP provides pre-purchase information to consumers, as well as speakers to the community on consumer issues.
For more information, call 240-777-3636 or visit OCP’s website at www.montgomerycountymd.gov/consumer.

Information on Common Ownership Community Collection Lawsuits

HOA and condo board members, check out this forum co-hosted by the Office of Consumer Protection. Here's the full press release:

The Montgomery County Office of Consumer Protection (OCP) and the Commission on Common Ownership Communities (CCOC) will host an informational session about condominium and homeowners association lawsuits regarding the collection of dues and fees on Wednesday, June 10 from 7 to 9 p.m., in the Council Office Building, 100 Maryland Avenue, Rockville. 

The Honorable Eugene Wolfe, the Honorable Patricia Mitchell and the Honorable Gary Everngam will conduct an interactive discussion concerning the following important topics related to collection lawsuits: 

• Role of the District Court
• Common Ownership Community Statutes
• Fair Debt Collections Practices Act
• Common Issues in Common Ownership Community Litigation
• Claims and Defenses

There are more than 1,000 common ownership communities operating in Montgomery County, and on occasion, they may need to file legal action in District Court when their unit owners fail to pay dues and fees. Homeowner associations and condominium boards of directors, attorneys and unit owners may all benefit from hearing information directly from the judges who currently rule on these lawsuits.

The session is free, however, registration is requested by calling 240-777-3636. See flyer for more information. 

For additional information about Montgomery County’s Commission on Common Ownership Communities call (240) 777-3636 or visit www.montgomerycountymd.gov/ccoc.


For additional information about the Office of Consumer Protection, call 240-777-3636 or visit www.montgomerycountymd.gov/OCP.

Free Screening of Driven to Defraud

Car sales fraud costs U.S. consumers billions each year. To help consumers fight back, the Montgomery County Office of Consumer Protection (OCP) and the Maryland Consumer Rights Coalition (MCRC) invite you to attend the Washington area’s first public screening of Driven to Defraud, MCRC’s powerful documentary film on auto sales fraud, on Wednesday, December 18 at 7 p.m. in the Fenton Room of the Silver Spring Civic Center located at 1 Veterans Plaza in Downtown Silver Spring, MD. This event is free and open to all.  Please come early as space is limited.

Driven to Defraud documents the scams some car dealers use to abuse Maryland car purchasers and shows you how to protect yourself when you buy a new or used car. The film explains how yo-yo sales, interest rate mark-ups, rebuilt wrecks, and other scams work through the eyes of car-buyers who have been victimized, consumer advocates, and honest auto dealers working to stop the fraud.

You will have an opportunity to ask Investigator Jim Parks, OCP’s auto expert and a Certified Master Automotive Technician, your car-repair questions. MCRC leaders will also be available to discuss what consumers and policymakers can do to stop auto fraud.

You can see a 90-second preview trailer for the film here: http://www.youtube.com/watch?v=t6Lti1UCNPg.

OCP, the County’s consumer protection agency, investigates thousands of complaints each year involving automotive sales and repairs, new home purchases, home improvements, credit issues, retail sales, internet services and most other consumer transactions. OCP provides pre-purchase information to consumers, as well as speakers to the community on consumer issues.

Consumer Resolutions for the New Year

As 2013 gets underway, our Office of Consumer Protection is challenging you to be smart and savvy consumers by making these ten simple resolutions for the new year:

• Always check a store’s return policy before making a purchase. Knowing the store’s return policy – including restocking fees – makes returns easier.

• Read parking rules before parking your car. Checking the signs in the parking lot before walking away from your car can save you hundreds of dollars and hours of aggravation.

• Shred documents that contain personal information.

• Protect your smartphone by always logging out of banking and social networking apps and clearing the phone’s browser history. Password-protect your phone and never share data over public wi-fi networks.

• Review monthly statements promptly. Always review monthly credit card and bank statements immediately to ensure that all charges are accurate and no hidden fees appear. Dispute billing errors or charges in writing right away.

• Never wire money to someone you don’t know. Wiring money is like sending cash – once it is sent, you cannot get it back. Scammers frequently use money wiring because it is quick, difficult to trace, and typically, there is no way to reverse the transfer.

• Order and review credit reports annually from each of the three nationwide credit reporting agencies at www.annualcreditreport.com or call 1-800-332-8228.

• Use a credit card – not a debit card – when shopping by phone, television or online. If a problem arises, charges can be disputed within 60 days from receipt of the bill.

• Do your homework before signing a contract or making large purchases. Always check the business’ complaint history, know the refund policies and check for any required licenses.

• Contact the Montgomery County Office of Consumer Protection with any consumer-related concerns.

The Office of Consumer Protection investigates thousands of complaints each year involving automotive sales and repairs, new home purchases, home improvements, credit issues, retail sales, internet services and most other consumer transactions. OCP provides pre-purchase information to consumers, as well as speakers to the community on consumer issues.

For more information and to check any merchant’s complaint record, call 240-777-3636 or email consumerprotection@montgomerycountymd.gov or visit OCP’s Web site.

Protect Yourself when Making Repairs after Storm

Here is the full text of the press release from our Office of Consumer Protection:

The Montgomery County Office of Consumer Protection (OCP) warns county residents to be cautious when hiring contractors to repair damage caused by last week’s severe storm and advises consumers to do their homework before signing a contract for any home repair or improvement, or tree service work.

“Storm devastation can strike twice if consumers are later victimized by unscrupulous contractors,” said OCP Director Eric Friedman. “Unfortunately, unlicensed contractors frequently follow in the path of storm damage seeking to exploit the misfortune of residents.”

The Office of Consumer Protection offers the following advice to homeowners:

~ Do not panic and hire someone because they are the only company that can come out to the house right away. Make sure the home improvement contractor is licensed with the Maryland Home Improvement Commission (MHIC) by calling 410-230-6309 or check online. Also, make sure the contractor is familiar with and has expertise in repairing the type of damage that your house has sustained, such as roofing or foundation repair.
For tree service or removal, check to see if the business is a licensed tree expert with the Maryland Department of Natural Resources (DNR), Forestry Division at 410-260-8521 or online at www.dnr.maryland.gov. If a licensed company is used, there is a complaint process through the Department of Natural Resources. If an unlicensed company is used, it is often impossible to track down the company, particularly if they have been paid in advance. In addition, consumers should ask to see written verification of the company’s insurance and workers compensation coverage.

~ Get estimates from three contractors. Some fraudulent contractors will capitalize on the situation and overcharge consumers or lead them to believe the damage is worse than it really is. State law requires a written contract for any work completed. A home improvement contract should include the terms and conditions of the warranty. The manufacturer’s warranty should be a separate, written document. The contract must also include: the contractor’s name, address and home improvement license number; the approximate starting and finishing dates; and a description of the work to be done and materials to be used.

~ State law prohibits home improvement contractors from collecting more than one-third of the contract amount as a deposit. If the contract is signed in your home, the contract must allow the consumer three days in which to cancel the contract. Under emergency situations only, the consumer may waive this three-day right to cancel, but must sign a special form to do so.

~Check the contractors’ complaint records with the Office of Consumer Protection at 240-777-3636 or online at http://montgomerycountymd.gov/consumer and the Better Business Bureau at 202-393-8000 or online at www.dc.bbb.org, and with the MHIC and DNR.

OCP, the County’s consumer protection agency, investigates thousands of complaints each year involving automotive sales and repairs, new home purchases, home improvements, credit issues, retail sales, internet services and most other consumer transactions. OCP provides pre-purchase information to consumers, as well as speakers to the community on consumer issues.

For more information, call 240-777-3636 or visit OCP’s website at http://montgomerycountymd.gov/consumer.

Improve Your Home Improvement Experience

Eager participants in the Improve Your Home Improvement Experience forum, which I co-hosted, went home with answers to their questions as well as questions they didn’t even know to ask. Representatives from the Maryland Home Improvement Commission, the National Association of the Remodeling Industry, our own Department of Permitting Services and the Maryland Consumer Rights Coalition presented various perspectives and advice for those undertaking home improvements.

The County’s Office of Consumer Protection reported that they get more complaints about home improvements than any other category except trespass towing. That’s disturbing, but the good news is that there are a lot of resources to help homeowners. Panelists encouraged people to get the facts before starting a project; pay no more than 1/3 of the total in advance; check a company’s credit with suppliers like TW Perry; and resist high-pressure or door-to-door sales tactics.

If things still go wrong, there are more options. In fact, the MHIC has a Guarantee Fund that protects you up to $20,000 for actual losses if you use a licensed contractor. Panelists couldn’t stress enough how important it is to check the license. Also, avoid signing a contract with an arbitration clause, as this limits your options if you are dissatisfied with the work.

For more information, check out the 12 Tips for Hiring a Home Improvement Contractor in in my June 21 post. We owe a big thank you to the Office of Consumer Protection and the Advisory Committee on Consumer Protection.

12 Tips for Hiring a Home Improvement Contractor

Here’s some great information from our Office of Consumer Protection. Stay tuned for more on this important topic.

12 Tips for Hiring a Home Improvement Contractor

1. Check to confirm if the contractor and any subcontractors are licensed or required to be licensed.

2. Read and understand all terms of the contract. Insure that all verbal promises are reduced to writing. Does your contract include:
~ Three day right of cancellation (Door-to-door Sales Act)
~ Arbitration clause/procedure for handling disputed issues
~ Starting and completion dates
~ Work schedule and payment schedule
~ Warranties to cover both labor and materials
~ Contractor’s liability coverage
~ Site preparation and site clean up
~ Signature of the applicable parties.

3. Check to determine if all necessary permits are obtained; this could include building, zoning, plumbing, electrical and/or environmental permits.

4. Check to ascertain if there are any quasi-governmental requirements such as approval from homeowners’ associations and/or historic preservation requirements.

5. Obtain more than one written estimate.

6. Ask for references and check them.

7. Check with your local consumer protection office or other governmental regulatory agency regarding complaints and building codes/permits.

8. Determine if there will be a site supervisor. If subcontractors are used, require a release of liens.

9. Know how to reach your contractor in the event of an emergency, or in the event you have to file a lawsuit.

10. Do not hire an unlicensed contractor.

11. Be cautious of individuals going door to door soliciting/selling.

12. Never allow a contractor to pressure you into accepting a job, and be leery of special/secret/one day/take-it-or-leave-it offers.

Improve Your Home Improvement Experience

Join me and Montgomery County's Advisory Committee on Consumer Protection for a public forum entitled Improve Your Home Improvement Experience. Topics include everything from avoiding scams to state licensing requirements. The expert panel discussion will be held on Wednesday, June 20 from 7 to 9 p.m., at the Council Office Building, 100 Maryland Avenue, Rockville, 1st floor Auditorium. 

This free forum will be moderated by Eric Friedman, director of the County’s Office of Consumer Protection. He will lead a discussion with experts on home improvements, including Marceline White, executive director of the Maryland Consumer Rights Coalition; Steven Smitson, executive director of the Maryland Home Improvement Commission (a division of the Maryland Department of Labor, Licensing, and Regulation); the Montgomery County Department of Permitting Services; and the National Association of the Remodeling Industry.

As we approach the summer building season, our Office of Consumer Protection generally sees a rise in complaints involving home improvement, so I look forward to having an opportunity to help educate our residents on ways to avoid getting scammed. The Office of Consumer Protection is such a valuable resource for our residents, and I am pleased to be able to participate in this important forum.

The forum will address a number of topics including common scams, how to be sure your contractor is properly licensed, how to structure your home improvement contract, permitting requirements for homeowners, and what remedies are available for consumers. Light refreshments will be served.

Your Money Matters: Financial Consumer Protection for Today's Economy

Montgomery County’s Office of Consumer Protection (OCP) is co-hosting a public forum with Congressman Chris Van Hollen titled, “Your Money Matters: Financial Consumer Protection for Today’s Economy.” The forum will be held on Tuesday, May 17 from 7 to 9 p.m. at the Silver Spring Civic Building, One Veterans Place, Silver Spring.

Speakers at the forum include special guest, Professor Elizabeth Warren, assistant to the President and special advisor to the Secretary of the Treasury on the Consumer Financial Protection Bureau. Montgomery County State’s Attorney John McCarthy is also scheduled to speak. Representatives from more than 30 federal, state and county agencies will participate in the forum.

Forum attendees will have an opportunity to talk to experts, gather information and learn about a number of topics, including mail fraud, lotteries and sweepstake scams, investment scams, foreclosure prevention, identify theft, Medicare fraud, long-term care issues, benefit advice for veterans and social security recipients, and more.

For more information, call 240-777-3636.