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Beware of Home Improvement Fraud

Last Updated: April 20, 2009

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Home improvement should be pleasant, not painful.

Released April 13, 2009

LITTLE ROCK, Ark. - Just as the flowers begin to spring up from the ground, home improvement scam artists start to spring up as well. They offer promises to fix everything from a leaky roof to a cracked driveway.

How can you as a consumer be sure you're getting your money's worth when you hire someone to fix up your home? Learn to recognize the signs of fraud.

Look for these warning signs that someone is not being honest.

  • Solicits your business door-to-door or by phone
  • Warns you that you need to make repairs immediately
  • Talks fast to confuse you and coerces you into signing papers today
  • Happens to have materials left over from another job
  • Offers a discounted price, but only if you buy today
  • Tells you something that sounds too good to be true
  • Only accepts cash and wants full amount up-front
  • Asks you to obtain the required building permits
  • Doesn’t have a business listing in the telephone directory

How can you avoid being scammed?

  • Never hire someone on the spot.
  • Always obtain at least three estimates and compare prices. Don't assume that the lowest price is the best deal.
  • A good reputation is also valuable; therefore, ask potential contractors to provide you with references.

To get the job done right, know what you want before talking to a contractor. When you make a decision to hire someone, agree on a detailed description of the work to be done, the materials used, starting and completion dates, the total cost, and payment schedule.

Never pay the full amount of a contract in advance. Arrange to pay for the work in installments as the job is being completed. Make the last payment after the work has been done according to the contract and to your satisfaction.

If you do become a victim of a home improvement scheme, don't be embarrassed. Report your circumstances to the Better Business Bureau and the Attorney General's Office. They attempt to apprehend swindlers and help to right wrong. Home improvement should be pleasant, not painful.

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http://www.uaex.edu/news/april2009/0413scam_video_audio.htm

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