- NATIONAL HOMEBUILDER'S (KB HOME) NEW ARBITRATION POLICY JUST MORE DECEPTION

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NATIONAL HOMEBUILDER'S (KB HOME) NEW ARBITRATION POLICY JUST MORE DECEPTION
Added: 01/02/2004 Type: Summary Viewed: 883 time(s) [ Not Rated Yet ]

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NATIONAL HOMEBUILDER'S (KB HOME) NEW ARBITRATION POLICY JUST MORE DECEPTION

Homeowners Against Deficient Dwellings (HADD), a national not for profit consumer advocacy organization in a letter to the Federal Trade Commission, has raised serious concerns about national homebuilder, KB Home’s new arbitration policy submitted in response to a consent decree issued by the FTC.

“KB Home’s new arbitration policy is similar to offering a free carpet upgrade to new homebuyers, while knowing it’s real use is to cover up a severely cracked foundation.” says Nancy Seats, National President of HADD.

KB Home in a June 26 letter to the FTC, offered to remove binding arbitration from their new home warranty, yet will continue to require mandatory arbitration. Arbitration, especially in new home contracts, has come under attack in many states for being extremely costly and grossly unfair. Whether the arbitration is binding or not, the extreme cost of the arbitration process is hidden from the homeowner until the time of arbitration.

KB’s other proposal allows a homebuyer to select 2 additional years of warranty with a mandatory binding arbitration clause. Homebuyers, not knowing the extreme cost and the biased nature of arbitration, will surely accept the 12-year warranty. Not only will they give up their rights to fair recourse, they will get 2 more years of a warranty that provides little if any protection.

“This new policy is nothing more than continued deception by KB Home. We don't want fines, or the FTC playing footsie with a corporation who has repeatedly violated their FTC decree. We want restitution for homeowners and accountability. When the SEC flexed muscle in dealing with ENRON it sent a message that was chilling, we expect no less from the FTC." Says Seats.

HADD is a national non-profit organization incorporated in the State of Kansas, and is composed of individuals from across the country that share a common bond of owning a defective home.

There are over thirty HADD Representatives in 25 states advocating for quality construction, accountability, and ensuring fair laws are in place for consumers across the country. Their website can be visited at http://www.hadd.com

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