HARRISBURG — The Pennsylvania Supreme Court recently ruled in favor of the Office of Attorney General — and Pennsylvania consumers — affirming the right to verbally cancel home improvement contracts within three business days of signing the contract.
The issue on appeal focused on a consumer’s right to cancel a contract under both the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL) and the Home Improvement Consumer Protection Act (HICPA). Pennsylvania’s Consumer Protection Law states that consumers may cancel contracts in writing, but HICPA does not specify the medium a consumer must use to cancel a home improvement contract.
“This company showed they care more about their bottom line than doing right by their customers,” Attorney General Sunday said. “HICPA does not specify that a consumer must cancel their contract in writing, and therefore, this company should have allowed consumers to cancel their contracts as they were well-within the three business day cancellation period.”
The case stemmed from ongoing litigation by the Office of Attorney General against Gillece Services. The company argued that cancellations of home improvement contracts must be submitted in writing under Pennsylvania’s Consumer Protection Law, but the Pennsylvania Supreme Court rejected that argument.
The Pennsylvania Supreme Court decided that HICPA, being the more recent and specific statute, required Gillece to honor oral recissions of home improvement contracts. Ultimately, this decision will allow consumers to cancel home improvement contracts — within three business days — through any medium, whether by phone, in writing, or in person, as long as the contractor has actual notice of the cancellation.
This decision only resolves a small portion of the ongoing case between the Office and Gillece. Now that the Pennsylvania Supreme Court has ruled, the remaining claims can proceed to trial.
Deputy Attorney General Anthony Kovalchick handled this case before the Pennsylvania Supreme Court and Assistant Director Jill Ambrose handled the case in the Court of Common Pleas.
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