Arch Insurance Company Agrees to Pay $460,000 for Consumer Claims
BALTIMORE, MD – July 6, 2010 – (RealEstateRama) — 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.
“Under Maryland 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.
Raquel Guillory, 410-576-6357
rguillory (at) oag.state.md (dot) us