On August 13, New York City Mayor Adams and Vilada Vera Majuga, Director of the Consumer and Worker Protection Bureau, announced a lawsuit against a renovation company, National Floors Direct (NFD), for committing serious acts of commercial fraud.
The lawsuit, filed by the Mayor, seeks consumer compensation, civil penalties, and the revocation of the company’s home remodeling contractor license.
According to the complaint attached to the Mayor’s office, NFD has been the most complained about home renovation contractor in New York City over the past five years. Since 2019, the Department of Consumer and Worker Protection (DCWP) has received 30 consumer complaints related to the company’s predatory and deceptive practices, prompting an investigation. The lawsuit also accuses NFD of violating over 2,500 consumer protection laws in New York City.
The complaint alleges that NFD engaged in false advertising, misleading consumers about service start times, providing poor quality service, refusing refunds, and deceiving consumers through cancellations.
“Renovating homes is one of the biggest investments for New Yorkers, which is why consumers should do business with fair and honest home renovation companies that do not charge thousands of dollars and deliver shoddy work,” Mayor Adams said in a statement. “New York City has the strictest consumer protection laws in the country, and we will enforce the law against company operators who exploit the working class in New York. Through this lawsuit, we send a warning to National Floors Direct and all others who think they can take advantage of New York City consumers: we are watching you, and we will take action to protect consumers and recover their money.”
One consumer, with the online name SnooMarzipans1691, shared their experience of being deceived on Reddit in March. They detailed how an NFD salesperson, who came to their door, explained their requirements and then swiftly presented a contract on an iPad. When the consumer requested to review the contract, the salesperson said they would send it via email, urging them to “just sign and initial here.”
Upon the arrival of the renovation workers, additional fees were demanded from the consumer. When the consumer called the company and refused to pay more, NFD claimed they were unconcerned, as they had the consumer’s credit card and would only charge monthly until the full contract amount was paid. Despite the consumer stating the salesperson did not provide the services agreed upon, the company retorted with, “Even if he (the salesperson) made a mistake, it’s your fault because you signed the contract.”
“I deeply regret giving my business to National Floors Direct; they are a group of unethical and despicable scammers,” said the consumer.
Common complaints against the company involve failing to honor consumers’ rights to cancel contracts within three days, subpar quality of work leading consumers to spend their own money on repairs, such as sewing together loose carpet, and premature replacements of NFD-installed carpets within a mere six months. In these instances, NFD refused refunds or resolutions to the quality issues.
In New York City, individuals and companies must possess a home improvement contractor license issued by the DCWP to conduct any residential building, maintenance, renovation, or other home improvement work exceeding $200 in cost. This license does not cover new home construction, plumbing work, or pure electrical engineering.
New Yorkers are advised to check a company’s license with the DCWP before signing any contracts. The DCWP urges consumers who believe contractors have failed to fulfill obligations, owe them money, or are engaged in unlicensed activities to file complaints on the DCWP website (link: bit.ly/complaints) or call 311.
Our attempts to contact National Floors Direct for comment on the city’s lawsuit went unanswered as of the deadline.