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Posts Tagged ‘Better Business Bureau’

Contractors Poised to Defraud Homeowners after Sandy

Thursday, November 29th, 2012

Homeowners must be alert to storm-chasing contractors who try to exploit the confusion after superstorm Sandy to make shoddy repairs or steal down payments, the Coalition Against Insurance Fraud warns.

Most contractors are honest, but shady contractors typically descend on disaster areas such as those inflicted by Sandy, whose total damages could reach $50 billion.

Storm chasers typically go door-to-door seeking business. They’re often from out of state, incompetent and unlicensed. They intend to cheat anxious homeowners who urgently need repairs after the storm. Local contractors also may be dishonest.

Homeowners could lose thousands of dollars to contractor scams. Shoddy repairs also can take months to correct, making it harder for homeowners to put their lives back together again.

Contractor inquiries have ranked No. 1 for five straight years by the Better Business Bureau. Contractor-related complaints were ranked 3rd by the Consumer Federation of America for 2011. Home-improvement contractors were the No. 1 source of consumer complaints in New Jersey last year, reveals the state Division of Consumer Affairs.

Five Scams to Avoid

Pre-pay. The contractor demands a large cash payment upfront, then disappears after doing little or no work. The contractor also may illicitly require you to pay for bids.

Shoddy work. The work is low quality, using cheap or substandard materials. Homeowners may have to redo the entire job, often at their expense.

Phantom damage. A contractor creates storm damage. Nicking undamaged sidewall or roof shingles with a screwdriver to mimic hail damage is one come-on.

Inflated damage. Contractors may enlarge holes in a roof to increase their billings. Simply inflating the bill to include more work than was done is another ruse.

Pay your deductible. Offering to pay your insurance deductible to get your business typically is a come-on to lure you into fraudulent work.

Six Ways to Prevent Fraud

Avoid door-to-door contractors. These usually are the storm chasers who canvass damaged neighborhoods for repair jobs. All too often these contractors have fraudulent repairs in mind.

Verify license. Contact your state and local licensing agencies to ensure the contractor is licensed.

Work with your insurance company. Contact your insurer right away to help screen out scam artists. Work closely with your insurer throughout the claim process to assess the damage, determine what repairs are covered, and the cost. Get the right repairs done, and done right.

Watch for red flags. No business cards or referrals…P.O. Box instead of a street address…van looks rundown and has no company name…poor personal appearance…can’t show proof of workers compensation insurance or surety/performance bond.

Insist on a contract. Have a signed contract specifying exactly what work will be done, plus the price and repair schedule. Never sign a contract with blanks.

Contact local Better Business Bureau. Does the contractor have a history of complaints? See if the contractor has a BBB review.

Printed from: http://www.jewishpress.com/news/breaking-news/contractors-poised-to-defraud-homeowners-after-sandy/2012/11/29/

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