Contractor Scams

Just like how you value your personal belongings, you always want your homes to always look good and be organized to receive good impressions from other people. Every time, little repairs such as leaks, broken window glasses, etc. need to be done, you are always pressured to fix these things immediately. And because of this, contractor scams happen to you sometimes without your knowledge. It will only be later when you'll realize that you have been fooled by these people.

How do contractor scams happen? Well, it's something like this:

First, a contractor calls on the phone or knocks on your door and offers to do minor repairs in your home at a price that sounds reasonable. You tell him you're interested, but can't afford it. He then tells you that he can arrange financing through a lender he knows so, it's not a problem. You are easily persuaded and the work begins. At some point during the project, the lender or contractor may rush you to sign lots of blank papers before you have time to read what you've been given to sign. You sign the papers but later, you'll realize that the papers you signed are a home equity loan. The interest rate, points and fees seem very high. What's worse is that the work in your home isn't done right or hasn't been completed, and the contractor has little interest in completing the work to your satisfaction.

Truly, this is terrible! Giving away a little of your trust to these people to simply do little repairs in your homes will later cost you a lot. The worst thing - you'll not even get the right service that you deserve. A big headache, really...

Know what, not all contractors operate within the law. You have to know the characteristics of a less than reputable contractor:

• solicits door-to-door,
• offers you discounts for finding other customers,
• happens to have materials left over from a previous job,
• accepts cash payments only,
• asks you to get the required building permits,
• does not list a business number in the local telephone directory,
• tells you your job will be a demonstration,
• pressures you for an immediate decision,
• offers exceptionally long guarantees,
• asks you to pay for the entire job up-front,
• and suggests that you borrow money from a lender the contractor knows.

After reading this article, I just hope that nobody else will become a victim of these contractor scams. Let us all be careful even with the small things - such as these home repair stuff - we engage with.