Residents React to Screening of Film Addressing Maryland Financial Predators

People have big dreams when they purchase a home: family legacy, bill consolidation, a place to call their own.

“For many people in Maryland right now, those dreams have gone terribly awry,” said Marceline White, Executive Director of the Maryland Consumer Rights Coalition.

That was the start to the documentary that over 30 people, mostly seniors, watched Tuesday night at the MCRC Documentary film event in downtown Silver Spring. The documentary entitled Stealing Trust tells the story of ten Maryland homeowners who were taken advantage of by contractors, debt consolidation counselors and other financial predators during home improvements, foreclosures, and loan modifications.

“This didn’t happen because they were ignorant or didn’t try to protect themselves, it is because these people are professional scam artists and some of the loan products are designed to deceive people,” said Franz Schneiderman, Communications Director for the MCRC.

Residents of Montgomery County and neighboring areas watched the film and responded to the stories with audible sighs and head shaking of disbelief and disapproval.

“I feel really sad for people,” said Sealani Weiner, a Berwyn Heights resident who attended the screening. “I’d like to think I wouldn’t get caught in something like this, but I know people it has happened to,” said Weiner.

The people in the film all said they didn’t think it would happen to them either.

A Maryland couple, Randy Johnson and Terry Berg, used their retirement savings for home improvements on what they wanted to become their dream home. After interviewing 16 contractors, they chose one, and paid him 86,000 in cash to start the project. Months later their home had holes in the ground, exposed wires and other incomplete projects without any sign of progress. They filed a civil suit and had to hire a new contractor to finish the project.

Schneiderman said that under Maryland law, contractors cannot take any money until a contract is signed and a contractor can only take up to a third of the amount agreed upon for the project. Yet he said that many people like Johnson and Berg mistake the percentage as the amount that must be given to a contractor.

“We encourage consumers to negotiate with their contractors before paying,” said Schneiderman.

Maryland passed legislation in April 2011 called the Maryland Home Improvement Commission-Sunset Extension and Program Evaluation Act (HB 362/SB 236) that creates a website listing protections available to consumers through the Guaranty Fund, establishes a searchable database on the MHIC’s website where consumers can find complaints and disciplinary action, and requires MHIC to study implementing a tiered licensing system for contractors, among other things.

The Montgomery County Office of Protection gave each attendee a bag filled with a consumer protection pamphlet and contact information for the department that “ensures integrity in our marketplace.” Eric Friedman, who represented the office, encouraged everyone to visit their website to find a list of local contractor complaints, and a list of certified mechanics, home improvement contractors and others who will visit homes free of cost.

“All I can tell people is fight, as hard as you can,” said Kevin Matthews, a victim who was featured in the documentary.  “Don’t wait until you have to get behind the eight ball,” Matthews advised.

An introduction of the video shown at the screening can be found on the MCRC’s youtube channel.