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Anatomy of a Home Repair Scam
Like most people, Margaret wasn’t a wealthy woman but had enough
in savings to live comfortably. While sitting on her porch one
spring day, a man drove up in front of her house in a pick-up
truck with equipment in the back and ladders on the roof. The
sign on the side said “Smith Construction, Helping People for 25
Years.”
He got out of the truck, looked at Margaret and pointed to
the roof. “Looks like you got a problem, ma’am. I was driving
past and I saw that the flashing on your roof is loose. A good
wind will take that right off.” “How much will that cost?”
Margaret asked. “Well, you remind me a lot of my great aunt so
nothing at all,” the man said. “I’ve got extra material and tar
right here in the truck.” And with that, he was up the ladder
and seemingly hard at work. Ten minutes and one tar covered
brush later, the man came back down the ladder, only now with
bad news for Margaret.
What started out as a “Let me help you for free” minor roofing
job turned into a ten-thousand dollar repair that she never
needed in the first place. Margaret is the victim of a common
home improvement scam.
Every year, thousands of thieves take advantage of senior
citizens by utilizing this scam. According to a recent study
released by the U.S. Department of Justice, 3.6 million or 3% of
all households in the U.S. have been victimized by some sort of
a home repair or improvement scam. Of these victims, nearly 61%
are senior citizens age sixty or older and in Pennsylvania
alone, these thefts accounted for 71% of the complaints filed
with the Pa. Attorney General’s Office.
These scammers are successful for many reasons but mainly
because most of the victims are unwilling or unable to get up on
a roof and see the “problem” for themselves In addition to
knowing their victim’s physical limitations, scammers also use
many tricks and props to facilitate their deception. These props
may include a bucket of black paint to resemble a fresh tar
repair job or pieces of broken shingle or flashing taken not
from the roof but brought with the thief to show the victim.
Once the thief has the victim lured into a false sense of
security, they now take advantage of the victim’s trust and
their bank account. The age of the personal computer and “do it
yourself” printing and business promotion kits even permits the
thief to be armed with a variety of official looking paperwork
including business cards, flyers, brochures and job estimate
forms. After the victim is hooked, the scam artist will often
keep “retuning to the well” and build a relationship of trust
with the victim. In many cases, trusting seniors have even been
talked into handing over blank checks.
How NOT to be a Victim
1.) Avoid hiring anyone who has
solicited you. As we’ve seen in Margaret’s case,
a man approached her out of the blue and offered to do labor for
free. A true professional, when called by the homeowner, will
give a written estimate detailing labor and materials before any
work begins.
2.) Always check credentials
through a third party of your choosing a contractor.
Don’t accept the reference given by the contractor. They are
likely family or friends. Always check with the Better Business
Bureau for complaints.
3.) Contact your local police
department and ask if there are any complaints of
home improvement scam artists in the area. Some communities have
programs through their building inspectors geared toward victim
education. The police can also tell you if the contractor has a
permit to solicit you. Your local officers are there to help you
so don’t ever hesitate to call them!
4.) Never pay for any improvement or
construction job upfront. A reputable contractor
will never ask for all monies in advance. An accepted payment or
installment method is a down payment or advance, a middle
payment and an end payment when the job is completed. Run far
away from any contractor who wants all of the money up front.
It’s a good bet they and your cash will disappear as soon as
your check clears.
5.) Get multiple estimates on the
work and get them in writing. After selecting a
contractor, get in writing: Their full name, address, telephone
number, their insurance information, a complete description of
the type of work to be done, all materials used, a start and
estimated completion date, a total cost of ALL work performed
and an agreed payment method and schedule.
6.) Never sign a contract with
blank spaces. This allows for deception such as
the scam artist adding on extra work and/or materials that you
did not agree to.
7.)
Ask to obtain lien waivers. This protects you
from a shady contractor placing a lien on your home or property
in the event sub contractors or secondary workers employed and
paid by your contractor are not paid.
8.) Find out if the materials that
the contractor is using have guarantees or warranties.
If they do, get those warranties in writing. You should
have a copy and hold the paperwork on those guarantees, not the
contractor.
9.) If
you are physically unable to inspect the completed work, ask
someone you know to inspect it for you.
You may even be able to contact your local building inspector
for assistance.
10.) When in doubt or if something
doesn’t seem quite right, DON’T HIRE THAT CONTRACTOR.
Listen to your inner voice… it’s talking to you for a
reason!
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Americans
spend millions of dollars yearly on improvements to their homes. In
2009, Contractors committing fraud through home improvement scams
reportedly victimized homeowners out of 100 million dollars. This is a
reported figure as it is estimated that only 1 out of 7 people report
being a victim of a crime. The others keep their secret because they are too embarrassed or fear
reprisal.