A Free Public Service

SCAMS BULLETIN Host Jay White is an inactive attorney in San Mateo County, California.

September 10, 2003

HOME IMPROVEMENT SCAMS

Attribution: US Federal Trade Commission

Americans spend close to $500 billion a year on home improvement. And a chunk of that money, as much as $40 million, ends up in scammers’ pockets.

The home building, remodeling and repair industries are struggling to keep up with demand for their services. This has opened the door for scammers.

Roof repairs and replacements account for a major proportion, around 15 percent, of con tricks, followed by painting and concrete projects. Kitchen renovations also are scam favorites.

Homeowner complaints include:

*unlicensed and unqualified self-proclaimed contractors;

 *do a bad job or no job at all;

* heavily overcharged, and then disappear with your money;

 *Work taking longer than expected;

 * work unexpectedly going over budget;

 *work quality was lower than expected;

*workers showing up late or leaving early,

*uncleared messes, and rude or unprofessional behavior:

*quit before the job is completed;

* not properly insured;

 *High-pressure sales tactics:

 *Upfront payment demands then disappear

 *Bait-and-switch fraudsters quoting an extremely low price then claiming to have run into unforeseen and costly issues.

  *Using or switching to cheap materials;

   *Home improvement loan scams;

Instances of Home Improvement scams can be reported to www.ftc.gov/fraud.

#

                                                                                                 #