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Consumer Focus Monthly Newsletter: Home improvement bonds

Bill creating a contractor bond would help consumers recover money

It’s become a familiar story: A home improvement contractor takes money from several homeowners but leaves behind nothing but broken promises and unfinished projects. Even if lawsuits are filed and judgments ordered, sometimes no money is ever recovered.

How can this problem be fixed? The Iowa Attorney General’s office has proposed a bill with the Legislature to strengthen the law involving home improvement contracts. Under the bill, a contractor must file with the state a $75,000 surety bond before entering into a home improvement project.

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