When it comes to home construction, there are thousands of general contractors to choose from. The best way to separate reputable contractors from less-than-reputable ones is to do your research, ask the right questions, require proof of credentials, and choose a contractor who works specifically in the field you need. For example, if you need to replace your roof, choose a licensed roofing contractor over a home remodeling contractor. A vague job description may mean that they specialize in a wide range of construction projects. Instead, you want a contractor who will operate your business with a keen focus on roof repair and replacement.
One of the biggest problems in the home construction industry is contractor scams. It’s critical to always be wary of sneaky home improvement scams because they’re so common. They can easily cost a homeowner thousands of dollars if they fall victim to dishonesty. Fortunately, anyone can avoid becoming a victim of home improvement scams with the right knowledge and attitude. Read on for important information on how to spot these types of scams, protect yourself from fake loans, and who to turn to if you have a bad experience with an unethical contractor.
Signs a contractor is trying to scam you:
– They knock on door to door and offer their business.
– They arrive at your door and offer you discounts for recommending other customers.
– They tell you that they can give you a deal because they have leftover materials from another job.
– They give you ultimatums or pressure you to make an immediate decision.
– They only accept cash payments and/or require you to pay all fees up front.
– They know a lender and recommend that he lend them money.
– They tell you to get the necessary work permits for the work.
– They tell you that the work on your property is going to be a “demonstration”.
– They offer lifetime warranty or unlikely long term warranty.
– You cannot find your business number or name in any local directory.
Even one of these signs is an indication that you are not working with a responsible or experienced contractor. Also, you should beware of a similar loan scam. The disadvantages of home improvement loans are as common as they are detrimental. This can lead to you unknowingly signing up for a home equity loan with incredibly high interest rates, points, and fees. And since the contractor has already been paid for this loan, he may lose interest in the job and stop doing a good job; or worse, not completing the job at all.
How to report a bad experience
If you have a bad experience like this with a contractor, try working it out with them first. After any phone conversation, send them a certified letter, asking for a receipt in it. Then keep copies of all records. This paper trail is your record that the business or contractor received your letter. If this doesn’t work, you still have other options.
You can report them to certain industry organizations and possibly earn some sort of reward. This includes your state attorney general, your local consumer protection office, your local homebuilders association, local media “call to action” lines, and various dispute resolution programs in your city.