7 tips to avoid hiring scam contractors: Internet Scambusters #282
Today’s issue offers 7 tips to avoid scam contractors.
Although most building contractors, plumbers, electricians and
roofers are ethical people who perform quality work, there ARE
thousands of scammers roaming the country in search of a quick
Since most of us don’t have degrees in engineering — or
experience in the building trades — it’s easy to get ripped
off by seemingly sincere building contractors.
Below are 7 tips to make sure you’re never victimized by
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On to today’s main topic…
Contractor Scams: How to Avoid “Rent-a-Creep” Schemes
Every summer, Scambuster Pete is approached by contractor
scammers three or four times. After answering a knock at the
door, a young man tells Pete that he’s just finished paving a
neighbor’s driveway, but has materials left over.
“I’ll offer you a big discount if you’ll let us repave your
driveway, too. I just need a cash deposit, and we’ll be right
If so, you already know about ONE classic contractor scam.
However, even if this doesn’t sound familiar, we’ll show you 7
ways that contractor scammers try to steal your money — and 7
ways to foil them.
Contractor Scam #1. Your roof is about to cave in!
Scare tactics are a favorite of scam artists, especially when
they approach seniors.
Sometimes, they’ll drop by your house and offer a “free”
estimate to assess “problems” with your roof, siding, driveway, etc.
Naturally, the scammer ALWAYS finds something wrong, and then
uses inferior materials to “repair” the problem while charging
you a big fee.
Tip: We can’t stress this enough: Always get at least two
estimates for any “damage” to your home, and always consult
friends, family or neighbors to learn the names of contractors
they’ve used in the past — ones they were satisfied with.
Contractor Scam #2. Instant Estimates.
The typical scammer will “assess” problems at your home, and
offer a verbal “quote” on how much these problems will cost to fix.
Please note: verbal quotes are NOT legally binding.
If the contractor later charges twice his estimate — or
damages your property during the “repair” process — it’s
doubtful you could successfully sue him.
Tip: Legitimate contractors are certified, insured and/or
bonded by the state and/or town where you live. What’s more:
they offer WRITTEN estimates for you to inspect (and often
sign) before work commences.
Contractor Scam #3. Door-to-Door Salesmen.
Like the plague, avoid door-to-door salesmen who claim they
just happened to be in the neighborhood because they were doing
work for someone nearby — especially if they claim they have
materials left over from the last job.
If a contractor has really brought materials from another job,
he is likely cheating his previous customer out of the
materials they purchased.
Tip: Honest contractors earn most of their business through
referrals from satisfied customers. They don’t need to travel
door-to-door to find business.
Contractor Scam #4. Intentional Damage.
Let’s say your area just experienced a severe storm. In the
midst of the storm (during the middle of the night) the scammer
might just tear a few pieces of vinyl siding from your house,
and then — miracle of miracles — appear the next day with a
sweet deal to repair that damage.
He might also suggest that if, say, additional damage occurs
during the repair process, you can charge it to your insurance
Nobody gets hurt, right?
Tip: Wrong! Insurance companies have claims investigators who
specialize in fraud. They even have lists of suspected
scammers, so if you hire a suspected scammer, the investigator
will REALLY be on guard. Scambuster Pete knows an investigator
who’s cracked more cases than Sherlock Holmes. Don’t EVER
commit insurance fraud.
Contractor Scam #5. Cash Only.
This scenario is easy and common: the contractor tells you he
requires that you pay in cash.
Tip: NEVER agree to a cash-only deal. Let’s face it: if
someone asks for cash only, you almost certainly know you’re
NOT dealing with a reputable contractor. Chances are, you’ll
never see this person again after giving him your hard-earned cash.
Contractor Scam # 6. Pay Upfront.
Again, this is easy. If you pay upfront, you may never see this
Tip: No reputable contractor will ask for most — or all — of
his payment immediately. In fact, most legitimate contractors
only bill AFTER the job is done to your satisfaction. If
someone asks for a large upfront payment — run!
Contractor Scam # 7. Referral Schemes.
Some scammers will offer you a substantial “discount” if you
promise to refer other customers or let them show off your home
as a “model” or “demonstration” project.
Tip: At best, this is a marketing gimmick. At worst, it’s an
outright scam, because the “discount” is usually not a discount
at all. If you’d just shopped around, you would have
discovered that a reputable contractor’s “full price” was
better than the scammer’s so-called discount.
We realize that some Scambusters’ readers are veteran
homeowners, who know most of this stuff — and hopefully, they
haven’t learned it the hard way. But we also realize that
there are homebuyers who can benefit from this advice.
Either way, be cautious before hiring somebody to remodel or
repair your house. Get two or three estimates and — AGAIN —
consult with friends, family and neighbors for the names of
honest and reliable contractors and tradesmen in your area.
Though the FTC document is “pegged” to disaster repairs, their
advice also works for anyone who has common home repairs that
need to be made.
Time to close — we’re off to take a walk. See you next week.