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Home Repair Scams A man knocked on the door of an elderly Severna Park homeowner and offered to re-seal his driveway, as he had three years earlier for $350. He said that for a repeat customer he would only charge half-price. The homeowner asked how much that would be and the man said he couldn't tell until he saw how much material it took. When the job was done, the man demanded $1,400. The homeowner was stunned but felt he had to pay. After talking with his daughter, he called his bank to stop payment on the check, but it had already been cashed. The homeowner did not have the man's address or company name. Home repair and improvement scams are among the most common consumer complaints. Consumers complain about shoddy workmanship, "fly-by-night" contractors who take payments and don't show up to do the work, and companies that pressure homeowners into expensive, unneeded repairs. You can avoid becoming a victim by taking important precautions before having home repairs done.
Warning signs
of a scam:
Don't hire contractors who come to your door unsolicited, even if they seem honest and helpful. These con artists may take your money and disappear before finishing the job, or sometimes before even starting the work, and are probably not licensed. If something goes wrong, you would have no way to track them down. Also, admitting strangers to your home puts you at risk of being robbed.
Deal only
with licensed contractors. When you need work done to your home, choose
a contractor carefully.
Don't
pay for unnecessary repairs. A Baltimore-area woman called a plumbing
company after noticing water leaking through her living room ceiling.
The plumber said all her bathroom pipes were broken. The job would require
removing the floor, repiping, and replacing the floor - at a cost of about
$1500. The situation was serious, he warned, because the ceiling could
collapse, causing an electrical fire if the repairs weren't done. The
alarmed consumer spent the night on the couch so she could keep an eye
on the ceiling. The next day she sought a second opinion. The second plumber
found that the woman's children had splashed too much water in the bathtub
that night. Only some caulking was needed. If a contractor
says a problem will be expensive to fix, get at least a second opinion
on the diagnosis, and find out exactly what work the project requires.
Shop around for a contractor, getting price estimates from several. When
requesting an estimate, ask if there is a charge for it. Beware of
salespersons using scare tactics and threats, such as, "Your furnace
will blow up if it's not repaired quickly," or "Your water is
unsafe to drink." Insist
on a complete written contract. The contract should include: the contractor's
name, address and telephone number, a description of work done, materials
used, labor cost, timetable, payment schedule, completion date, names
of subcontractors, warranty agreements, clean up and financing arrangements.
Find out beforehand if the contractor charges by the job or by the day. Know
your right to cancel. Because most home improvement contracts are
signed in the home, you are protected by the Door-to-Door Sales Act, which
gives you three business days to cancel the contract (the contract should
advise you of this right.) However, it's always best not to sign a contract
until you've considered all your options and are sure about your decision.
Beware of any contractor who asks you to waive your right to cancel within
three days. Don't
pay more than one-third of the total contract price in advance. In
Maryland, it's against the law for a contractor to accept more than one-third
in advance. Before making your last payment, live with the improvement
for a few days. Don't sign a certificate of completion or release final
payment until you have proof the subcontractors have been paid and all
the work in the contract is completed to your satisfaction. Be cautious
of home repair/improvement financing offers. If a contractor offers
to arrange financing for your home repair project, shop around for financing
yourself. Your own bank or a regular lender may offer better terms. Also,
some shady contractors may get you to sign loan papers that are actually
for a mortgage against your home. Or, the loan money may be paid directly
to the contractor even before the work is done, so the contractor could
take the money and disappear before finishing the job. May/June 2003
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Attorney General of Maryland 1
(888) 743-0023 toll-free / TDD: (410) 576-6372
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Beware
of roving con artists. These scam artists knock on people's doors
and offer to do work such as roofing, gutter cleaning, driveway paving
or tree pruning. They sometimes appear in the aftermath of hailstorms
or tornados, offering to repair storm damage.