Madigan sues Downers Grove home repair business for alleged deceptive practice

DOWNERS GROVE – Attorney General Lisa Madigan has filed a lawsuit against a Downers Grove-based home improvement business for allegedly misleading hundreds of residents into paying for home repair work they did not realize they agreed to and may not have wanted, according to a news release.

Madigan filed the lawsuit Nov. 16 in Cook County Circuit Court against American Dream Home Improvement Inc. for allegedly deceiving homeowners into hiring the company to do roof and home repairs following storms, the release stated. Residents in Cook, DuPage, Grundy, Kane, Knox, Lake, McHenry, Peoria, Rock Island, Whiteside, Will and Winnebago counties were impacted by the scheme, according to the release.

It is alleged American Dream Home Improvement sales representatives went door to door, usually following severe weather, offering free property inspections, home repair services and public adjusting services, according to Madigan’s complaint.

Residents allegedly were pushed to sign forms believing they were only agreeing to home inspections, according to the release. Shortly after, workers allegedly appeared at their homes to conduct repairs homeowners never agreed to, the release stated.

Residents who proceeded with the home repairs later contacted Madigan’s office to report shoddy or incomplete work, according to the release. In some cases, residents reported the company attempted to charge homeowners for more than their insurance company would pay on the claim, the release stated.

“American Dream Home has been more of a nightmare for hundreds of Illinois homeowners,” Madigan said in the release. “The company has a history of scamming people into expensive repair work they did not want, and today’s lawsuit should put an end to their deceptive practices. Before hiring a contractor, homeowners should contact my office and the Better Business Bureau and be hesitant to hire anyone who solicits home repair services door-to-door.”

Madigan alleged the company's salespeople frequently pressured homeowners into signing forms to authorize free damage inspections when American Dream Home Improvement actually intended to enforce the documents as contracts for home repair work, according to the release.

The release stated the forms were misleading, reportedly containing contradictory information and omitting required disclosures such as the work to be performed, parts and materials, total cost or charges, the start or completion dates, and a notice of cancellation as required by state law.

Many homeowners also were unaware the forms reportedly included language leaving them responsible for paying additional costs above what their insurance would cover, according to the release. Many people were unaware of the details of the forms they had signed or that the company allegedly would begin work without homeowners’ consent, the release stated.

Despite entering into a 2012 agreement with the state to comply with state laws, it is alleged American Dream Home Improvement has continued fraudulent practices and also continued to offer public adjuster services without being licensed by the state, according to the release.

Since 2012, Madigan’s office has received more than 100 complaints, and the Better Business Bureau received more than 250 complaints in the past three years, the release stated. Madigan is asking the court to provide restitution to impacted homeowners, ban the company from doing business in Illinois and impose civil penalties, according to the release.

Madigan urged homeowners who believe they may have been defrauded by American Dream Home Improvement or other contractors to contact her Consumer Fraud Hotline at 800-386-5438.