Crossmann Responds To Attorney General Investigation

INDIANAPOLIS -- Complaints from Crossmann homes customers prompted Attorney General Steve Carter to open an investigation into the company, and Monday, Crossmann wanted to clarify the customer service and inspection issues that have been reported.

Some of the complaints that Crossmann has received include electrical boxes and major cracks in ceilings.

The head of the state's consumer protection division said that they're hearing similar stories from around central Indiana.

"These are serious construction problems that we're hearing about. Some of the homes, again according to the reports we've heard so far, have not even passed the city inspections, so the occupants, the purchasers don't even have a certficate of occupancy, so they're not really supposed to be living in those homes," Consumer Protector Director Allen Pope said.

In its statement Monday, Crossmann said that they are aware of seven open complaints on file with the attorney general's office and have already responded to them.

The statement also says that Crossmann failed to receive written documentation of the city's final inspection of approximately 30 homes in Kokomo, Ind., but that in every case, the houses received a walk-through with the customer and an inspection by an independent third-party professional inspector certified by the Federal Housing Association, the Veteran's Association or a conventional lender.

"The company's failure to obtain a city sign-off in Kokomo was an oversight, and Indianapolis division managers are committed to following the requirements of every local jurisdiction in which it operates," the statement said.

Pope confirmed that the state has received eight formal complaints against Crossmann, including one from Kokomo. Pope said that his office has been told to expect more than 40 formal complaints against Crossmann from the Kokomo area soon.

About 40 percent of Crossmann's homes are in the Indianapolis metro area, and the company said that it intends to investigate problems.

Crossmann also issued another note to show that its customers are satisfied.

Crossmann said that over the past five years, the company has only incurred $24,000 in claims against its new homes.

If you have a Crossmann home and want to file a complaint with the attorney general's office, you can call the consumer protection hotline at (800) 382-5516.