Protection Division Enters into Settlement with Bonding Company
for New Home Builder
Arch Insurance Company Agrees to Pay $460,000 for Consumer Claims
MD ( July 6, 2010) -Attorney General Douglas F. Gansler
today announced that the Consumer Protection Division has reached
a settlement with Arch Insurance Company, the bonding company
for Equity Homes, LLC., to pay $460,000 in consumer claims.
Equity Homes was a home builder based in Fairfax, Virginia
that went out of business in February 2008. Prior to its closure,
Equity Homes accepted deposits from consumers to build new
homes but never built the homes or refunded the deposits.
Equity Homes had obtained a $500,000 bond from Arch Insurance
Company as required under Maryland law. The bond is used to protect
deposits and other payments received from consumers. Following
an investigation, the Consumer Protection Division determined that
consumers had paid deposits and other payments to Equity Homes
that were not refunded. Arch Insurance Company has paid the Consumer
Protection Division $460,000, which the Division will distribute
to consumers who are owed refunds from Equity Homes.
law, a home builder is liable to consumers if it fails to build
consumers’ homes,” said Attorney
General Gansler. “I am pleased that consumers were protected
under Maryland law and that we were able to help get consumers
their money back.”
If consumers believe they are due a refund of a deposit or payment
from Equity Homes and have not been contacted by the Consumer Protection
Division, they should contact the Division at (410) 576-6569 by
September 10, 2010.