What are some common contractor scams?
If you’re planning a home improvement project, there are lots of great contractors to choose from. But remember, all contractors DO NOT operate within the law. Your “rip-off” alert should be in high gear when a less than reputable contractor:
- Goes door-to-door with high pressure selling tactics;
- “Can’t find” his contracting license;
- Just happens to have materials left over from a previous job;
- Only accepts cash payments;
- Asks you to get the required permits;
- Does not list a business number in the local telephone directory;
- Says your job will be a "demonstration;"
- Pressures you for a decision;
- Asks you to pay for the entire job up-front;
- Strongly suggests that you borrow money from a lender the contractor knows. Be careful, or you could lose your home through a home improvement loan scam.
Make sure that a contractor is licensed and reputable. Ask your friends for referrals; ask the contractor for references; and check out contractors with the Better Business Bureau, state and local consumer protection officials, and your state licensing agency.
