Homeowners Gain New Power to Cancel Contracts, Court Rules

Legal
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HARRISBURG, PA — Pennsylvania homeowners can cancel home improvement contracts verbally within three business days, the state Supreme Court ruled, expanding consumer rights and limiting how contractors can enforce cancellation rules.

What This Means for You

  • You can cancel a home improvement contract within three business days by phone, in person, or in writing
  • Contractors must honor cancellations as long as they are clearly communicated
  • The ruling strengthens protections against unfair business practices

The decision clarifies how two state laws apply to contract cancellations: the Unfair Trade Practices and Consumer Protection Law, which governs consumer rights broadly, and the Home Improvement Consumer Protection Act, which specifically regulates home improvement contracts.

The court determined that the Home Improvement Consumer Protection Act — a law designed specifically for home improvement transactions — does not require cancellations to be made in writing.

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Why the Court Ruled This Way

The case centered on whether consumers must cancel contracts in writing or if verbal cancellations are sufficient.

While the broader consumer protection law references written cancellations, the court found that the more specific home improvement law does not limit how cancellations must be communicated.

Because the home improvement law is both newer and more directly applicable, the court ruled it takes precedence in these cases.

As a result, contractors must accept cancellations made through any method, including phone calls or in-person communication, as long as they receive clear notice within the three-day window.

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Case Background

The ruling stems from a lawsuit brought by the Pennsylvania Office of Attorney General against Gillece Services.

The company argued that cancellations had to be submitted in writing, but the court rejected that position.

“This company showed they care more about their bottom line than doing right by their customers,” Attorney General Dave Sunday said.

He added that the law does not require written notice and that consumers should be allowed to cancel contracts within the legally defined period.

What Happens Next

The Supreme Court’s decision resolves one portion of the ongoing case.

Remaining claims in the lawsuit will continue in lower court proceedings, where additional issues related to the case will be considered.

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