Homeowners and contractors who lost money when a Calgary renovation business shut down and filed for bankruptcy were looking for some payback Thursday.
Century Auctions sold off everything belonging to The Remodelers in an auction at the company’s showroom and warehouse on 1st Street S.E.
Ken Knapik with Sheila’s Drapery spent $230 for his own property.
“We have displays in the show room here that the receiver saw fit to take control of so I had to buy my own displays back,” said Knapik.
Lorne Graham had a home renovated but came to help others not so lucky.
“I think for myself is to get a little money so maybe some of the homeowners that got ripped off will get a little money,” said Graham.
At least two dozen homeowners paid The Remodelers deposits of up to 50 per cent for large renovation projects which were either never finished or started.
READ MORE: Angry homeowners square off against man behind ‘The Remodelers’
Calgary police and provincial consumer investigators are looking into allegations of fraud.
The company had a provincial pre-paid contractors license and a $25,000 bond to protect consumers, but victims like Tina Evans say the system didn’t work.
“As a province, I think you need to be responsible for the consumers. If the remodelers can do this to us, any renovating company can continue to do this because there’s no change in regulations,” said Evans.
The minister responsible for Service Alberta, which sets contractor regulations, says they haven’t seen a case like this in 35 years.
Stephen Khan says the size and cost of renovation work has increased and the regulations need updating.
“I think you look at some of the bonds that we were requesting. I’m not sure there’s a parallel to what we were asking for previously to the scale of the work that people are performing now on their homes,” said Khan.
Contractors say changes are needed but not increasing performance bonds.
Blair Foisy with Trademark Renovations says the provincial license should cap the size of a deposit allowed.
“If they raise the bond amount too high, a lot of guys aren’t going to be able to qualify for that bond because it’s like going for a loan,” said Foisy.
Sales from the bankruptcy auction will pay off creditors but with over $6 million in debts and just over a million dollars in assets, homeowners and contractors are low on the list.
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