Home Improvement Scams

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WHAT ARE THE SIGNS THAT THIS IS A SCAM?

Itinerant worker: Any time that you need to act immediately to take advantage of a deal such as a home repair contractor arrives at your home and says that he/she has extra supplies from a repair job he/she did for your neighbor's home. If you pay an upfront fee right now, he/she will use the extra supplies to repair your home at a discount, and will start work immediately after payment.

A contractor uses high pressure sales tactics such as reports that repairs need to be made immediately for the safety of you and your family, or in order to take advantage of a special, discounted price.

Storm chasers: Fly by night contractors and storm chasers who may drive around your neighborhood in unmarked trucks, do not provide complete contact information for their business and require advance payment. The contractor may tell you that your home has been severely damaged by wind or hail storms and that your insurance company will likely cover the cost. The company may ask that you immediately sign a contract stating that you will hire them to do the job.

Chimney Scams: You call a chimney sweep to clean and inspect your chimney. They inform you that you need a new liner or the whole chimney needs replaced because of cracks. The individual insists that if the chimney is not repaired or replaced, you and your family may succumb to carbon monoxide poisoning or are at risk for a fire. However, they have little to no proof of these claims. Beware of cut-rate prices, particularly by way of coupons. A certified chimney sweep charges $100-200 for a cleaning and inspection.

Termite Scams: In the pest control business, it is common for fraudulent exterminators to bring 'evidence' with them, generally termite wings or droppings, to show you 'proof' of infestation. Ants with wings to the untrained eye can be mistaken for a termite. Also watch out for any exterminator who claims they will 'control' the termites instead of exterminating them. This means they will only use procedures to limit the size of the colony - not eradicate them.

Radon Scams: Radon is an invisible radioactive gas that is linked to lung cancer. Beware of unlicensed radon 'mitigators,' being sold through high-pressure tactics.

A contractor offers to seal your driveway for a heavily discounted price. Find out what materials will be used as sealant. Cheaper materials may look good at first, but can wear off in just a couple of months.

A contractor says he or she has a deal for you that is good only today and unless you agree the offer is not valid.


HOW CAN CONSUMERS PROTECT THEMSELVES?

Do your research when considering interaction with any company or organization. Take advantage of the resources at Better Business Bureau (www.cincinnati.bbb.org), and trade organizations such as your local Homebuilders' Association (www.cincybuilders.com), and the National Association of the Remodeling Industry (www.nari.org) and make sure this business has a history of responsible conduct with consumers.

Many of these trade associations offer free mediation if the unfortunate situation does arise where there is a dispute between the customer and its contractor members. Additionally, members of these trade groups are held to industry standards created to help resolve disputes in the quality of workmanship.

Ask for references and do your homework. A good contractor should have previous clients who are willing to spread the good word about the contractor's work.

Get a second and even third opinion from reputable contractors.

Be wary of any contractors that want to do work 'under the table' or without a contract. Completing a contract and other paperwork helps ensure that you have recourse if the repairs are shoddy or not completed.

Take time to shop around. Get at least three estimates for the job. Remember that you won't be saving any time or money if you're left with poor quality workmanship or a half-finished job from a contractor you can't track down.

Never let a contractor proceed with improvements to your home without verifying liability and workman's comp insurance. If you are unable to verify insurance information, it could be a scam.

Law requires notification in writing of your "Right of Rescission". This grace period allows you to change your mind and declare the contract null and void without penalty if the agreement was solicited at some place other than the contractor's place of business or appropriate trade premises (such as in your home).

Never make full payment for work upfront. In the City of Cincinnati, contractors may not request more than 10% down under most circumstances. Typically a down payment should be no more than a third of the total cost with additional payments made as the work progresses. Final payment should not be made until work has been completed and you have inspected the work to be sure that you are satisfied.

If you decide to sign a contract, make sure a completion date is specified and that you know what the job will cost, if work will be subcontracted, if a bond will be posted to protect you against liens on your home, if the contract includes all oral promises made, and if materials to be used are described in detail.

Carefully review the terms of any financing that may be offered to you to cover the costs of repairs. Is the financing secured, such as a mortgage on your home, or unsecured, like a credit card? You may explore your options in obtaining your own financing through your bank or credit union.

If you think your home has been damaged in a storm and repairs may fall under your homeowners insurance, contact your insurance company.

Be cautious about allowing access to your home. If you feel that your safety is at risk, contact the police.

Chimney Sweeps: Look for a certified chimney sweep in your area. If they have concerns, they will use a videoscope or videoscan to show you the problem and make suggestions about repairs. You should always get a second opinion.

Radon Scams: You can test to determine if radon gas is present in your home; it can seep into your basement, permeate up through your home and become trapped there. Home detection kits are inexpensive, around $10-20 and can be purchased at local hardware stores.

Termite Scams: Always ask the exterminator these questions:
1. Do you know the difference between ants and termites?
2. Do you think the infestation is new or old?


HOW TO REPORT IF YOU'VE BEEN A VICTIM

Ohio Attorney General's office: If you have paid a fee for shoddy or incomplete work, immediately contact the Ohio Attorney General's office (1-800-282-0515 or www.ohioattorneygeneral.gov) to report the crime. - Better Business Bureau (BBB): You should also submit a complaint to BBB (513-421-3015 or www.cincinnati.bbb.org) to report the problem and to receive assistance with resolving the dispute.

Call the Trade organization of which the contractor is a member.

Local Police Department: If you have paid a deposit and the company has not returned to start or complete work, you may file a police report for the theft of your money. You should also contact police if you feel threatened or if the individuals canvassing your neighborhood are engaged in suspicious activity.

Local Postmaster: If the US Mail system was used in any way in the scam, call 1-888-877-7644 or go to www.postalinspectors.uspis.gov.

"Looks Too Good To Be True" Website: The website was developed and is maintained by a joint federal law enforcement and industry task force through funding provided by the U.S. Postal Inspection Service and the F.B.I. Go to www.lookstogoodtobetrue.com.

National Chimney Sweep Guild: If your chimney sweep uses scare tactics, or you suspect fraudulent services were performed on your home, the Guild will provide a state-by-state listing of certified sweeps. Go to www.ncsg.org.

Environmental Protection Agency (EPA): The EPA provides links on its Web site to offices where you can get information on safe Radon levels, guidance with radon measurement kits, and a list of licensed companies who can help reduce the radon in your home if it's present.

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For more information on preventing homeowner and rental fraud, visit these Web sites:

Federal Trade Commission - Foreclosure rescue scam

Freddie Mac - Mortgage fraud

Financial Fraud Enforcement Task Force - Mortgage, Loan and Lending Fraud

Ohio Attorney General's office - Home repair fraud

Ohio Consumers' Counsel - Understanding the Guidelines for Door-to-Door Solicitors

www.rentalfraud.org