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Excessive Downpayment


Adam Garcia, Attorney

Adam Garcia
CSLB Defense Attorney
(916) 596-1018

Credit-Cards-Accepted

One of the more common reasons for CSLB discipline is violation of California Business and Professions Code Section 7159.5(a)(3), accepting an excessive downpayment on a home improvement contract. The section reads “If a downpayment will be charged, the downpayment may not exceed one thousand dollars ($1,000) or 10 percent of the contract amount, whichever is less.” Accordingly, if the contract is for $5,000 and the contractor accepts a $1,000 downpayment the contractor has violated Section 7159.5(a)(3) as they have accepted more than 10% of the contract amount as a downpayment.

Discipline

The Contractor State License Board can issue a Citation or Accusation for violation of Section 7159.5(a)(3). However, Accusations are rarely filed for a single regulatory violation. In practice, charging an excessive downpayment will often be accompanied by additional alleged regulatory violations in the Accusation.

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    We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code. The information contained in this website is for informational purposes only and is not legal advice. Furthermore, the information contained in this website is not guaranteed to be up to date, accurate, or complete. An attorney-client relationship can only be established by signing a representation agreement.
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    *$900 Chapter 7 Bankruptcy Fee Disclaimer: While most cases qualify for the above fee, some cases are complex. Consequently, the above fee is only a sample fee (not a specific or guaranteed fee) and is subject to change at any time due to the necessity of charging more for complex cases. The sample chapter 7 fee represents the typical fee for a simple no-asset chapter 7 case. The $900 fee is only available to residents of the following counties: Sacramento, Placer, Yolo, Solano and San Joaquin. Residents of other counties may be charged more.