In the News -
February 2008
Protect yourself from home repair fraud
LITTLE ROCK - After a tornado, home improvement scam artists spring up in
neighborhoods with promises to fix everything that’s broken.
"Homeowners, anxious for help, often fall victim to unscrupulous sellers,"
says Laura Connerly, a family resource management instructor with the University
of Arkansas Cooperative Extension Service.
How can you as a consumer be sure you're getting your money's worth when you
hire someone to fix up your home?
Learn to recognize the signs of fraud and follow this advice if you're in the
market for home repair. Here are warning signs that someone is not being honest.
- Solicits your business door-to-door or by phone
- Warns you that you need to make repairs immediately
- Talks fast to confuse you and coerces you into signing papers today
- Happens to have materials left over from another job
- They're doing other work in your neighborhood
- Offers a discounted price, but only if you buy today
- Tells you something that sounds too good to be true
- Only accepts cash and wants full amount up-front
- Asks you to obtain the required building permits
- Doesn't have a business listing in the telephone directory
How can you avoid being scammed?
"Never hire someone on the spot," Connerly advises. "Always obtain at least
three estimates and compare prices. Don't assume that the lowest price is the
best deal. A good reputation is also valuable; therefore, ask potential
contractors to provide you with references. Check reference to determine if
others have been pleased with past work performance."
To get the job done right, she says, know what you want before talking to a
contractor.
"When you make a decision to hire someone, ask for a detailed description in
writing of the work to be done, the materials used, starting and completion
dates, the total cost and payment schedule," Connerly says.
Never pay the full amount of a contract in advance. Arrange to pay for the
work in installments as the job is being completed. Make the last payment after
the work has been done according to the contract and to your satisfaction.
Make sure the person you hire has liability insurance. Ask to see a copy of
their workmen's compensation policy. You could be liable if a worker is injured
on your property; therefore it's a good idea to check your homeowner's policy or
call your insurance agent to determine the extent of your liability coverage.
"It's risky to hire someone on a ‘cost-plus’ or ‘time and materials’ basis,"
Connerly cautions. "Decide on the total cost from the beginning; otherwise the
contractor may have little incentive for completing the job in an economical or
timely fashion.
"Steer clear of companies or salespeople who try to pressure you into signing
a contract with scare tactics or threats such as ‘This price is available only
if you sign today.’ In addition, contractors who use a post office box with no
street address or telephone number or who won't give you references, shouldn't
be considered."
If you become a victim of a home improvement scheme, don't be embarrassed.
Report your circumstances to the
Better
Business Bureau and the
Attorney
General's Office. They attempt to apprehend swindlers and help to
right wrong, Connerly says.
For more information about this and other consumer issues, contact your
county extension agent or visit www.uaex.edu and select
Families and Consumers, then Money.
The Cooperative Extension Service is part of the U of A Division of
Agriculture.
February 22, 2008
Media Contact: Lamar James
Extension Communications Specialist
U of A Division of Agriculture
Cooperative Extension Service
(501) 671-2187 or (501) 753-0207
ljames@uaex.edu
Related Links:
|
