Roofing Regulation May Help Consumer Concerns

HIGHLANDS RANCH, Colo (CBS4) - It's one of the biggest consumer complaints in Colorado -- getting ripped off by "shady" roofing companies. Now lawmakers are considering legislation that would regulate roofers. At the same time one Colorado customer has been navigating her own roofing nightmare, and with a little help from consumer investigator Jodi Brooks she's finally getting some satisfaction.

Debra Kendle did everything right when she went to get a new roof on her house. She found a roofer with an "A" rating with the Better Business Bureau and other consumer groups. But despite strong recommendations, City Wide Roofing went out of business and took thousands of Kendle's dollars with them.

"I learned that glossy brochures and trucks and uniforms do not necessarily dictate the stability of a company," Kendle said.

She'd written a check to City Wide Roofing for $4,600 -- half the cost of labor. Three days later the company closed their doors and filed for bankruptcy. Brooks contacted the owner of City Wide Roofing, but on the advice of his attorney he decided not to talk. Brooks did talk to a former general manager at City Wide Roofing and found out that the business hit cash flow problems due to late insurance checks.

"Great companies and good people hit walls like this," said Buzz Frankel, former general manager for City Wide Roofing.

After Brooks looked into the situation, Kendle got several offers of help. Now O'Connor Roofing is working to make the situation right. They're putting on Kendle's new roof giving her an upgrade in the quality of the materials, adding new gutters and Leaf Guard to the project.

Kendle says she's learned a lot from this experience.

"Number one, do not pay a penny up front," she said.

Kendle says that financially solid roofing companies should work from a line of credit until the job is done and then pay the bills.

"Then trust your gut. Our gut told us not to sign over the entire $10,000 for the supplies to the roofer."

In fact, she wrote the $10,000 check to the supply company directly for her roofing materials. She even put a note on the back of the check saying the money could only be used for her address. Extra steps that most consumers wouldn't think to do.

"I think that's what saved us."

If it wasn't for that she would likely have given a check for more than $14,000 to City Wide and would have likely lost it all.

Roofing customers may soon be getting some help from state lawmakers. A bill is making its way through the legislature that would require more regulation for roofers. The bill is backed by the Colorado Roofing Association and calls for roofers to be bonded and insured, pass a standardized test and register with the state.

The industry is basically asking to be regulated.

"Some might find that surprising. Well, we want to clean up our industry," said Kirk Tiley, president of the Colorado Roofing Association.

Sen. Lois Tochtrop introduced the measure at the request of roofers. She says they will pay fees to cover the cost of the regulation.

"It will assure people that when they need to get their roofs fixed they will have quality roofers," Tochtrop told CBS4.

There is good support for the bill from the industry, insurers and state regulators, which gives it a good chance of passing.

As for Kendle, with the added gutters, Leaf Guard and better quality materials she believes she's lost about $1,400 on the project. The better quality roof will get a 20 percent decrease in her home owner's insurance, so she believes she'll recoup her money in 3 or 4 years.

--Written for the Web by CBS4 Special Projects Producer Libby Smith