Home Improvement Scams: How Not to Fall Prey

A home improvement contractor in southeast Ohio is facing 70 criminal charges for allegedly stealing more than $400,000 from homeowners, including four elderly victims.

A Washington County grand jury indicted Patrick Wilson, 29, Wednesday on 68 counts of theft and one count each of engaging in a pattern of corrupt activity and telecommunications fraud. Wilson, of Morgan County, allegedly accepted large down payments from clients to buy building materials for decks, pole barns, garages and houses, but he never delivered the supplies, completed the work or refunded the money. A total of 34 people from Ohio and West Virginia say they lost a combined $412,000 to Wilson from January 2017 through June 2019.

Unfortunately, this kind of home improvement scam is more common than you think, but luckily, there are some red flags you can watch out for to keep from being on the losing end of one. For example, shady contractors will often ask for payment up front. Some simply disappear with your money. Others will do shoddy work or claim to have discovered some hidden problem in your house that needs immediate attention and significantly raises the cost (a dishonest variation of the sales tactic known as upselling).

Additionally, home improvement con artists look to prey on homeowners when they are vulnerable. If your house has been damaged by a storm or natural disaster, a scammer may show up and try to persuade you to sign over the payment from your insurance company. Some crooks seek out older homeowners with memory or cognitive problems, hoping to con them into paying multiple times for the same work.

• Beware of contractors who say they stopped by because they just happen to be in your neighborhood. The good ones are usually too busy to roam around in search of work.
• Be skeptical if a contractor says he can offer a lower price because he’ll be using surplus material. That could mean he overbilled a previous customer or didn’t finish the work.

Here are so Do’s and Don’ts to help keep you from falling prey to a scam, courtesy aarp.org.

DO’S

• Do insist on seeing references. The Federal Trade Commission (FTC) recommends asking past customers detailed questions, including whether the project was completed on time and if there were unexpected costs. The FTC also suggests asking the contractor if you can visit a job currently in progress.
• Do require a bid in writing, and compare bids from multiple contractors before agreeing to any work.
• Do check the Better Business Bureau (BBB) website to see contractors’ ratings and whether any complaints have been filed against them.
• Do get a written contract before you pay any money and before the work starts.
• Do read the fine print. The BBB says a contract should include a detailed description of the work, material costs, start and completion dates, and warranty information.
• Do verify, before you make the final payment, that all work has been completed to your satisfaction, any subcontractors or suppliers have been paid and the job site has been cleaned up.

DONT’S

• Don’t pay cash. The FTC recommends using a check or credit card, or arranging financing.
• Don’t put down a big deposit. The initial payment should be no more than a third of the total estimate, payable on the day the materials arrive.
• Don’t automatically take the lowest bid. Some contractors cut corners to come in lower than competitors, according to the BBB. The FTC recommends that if one contractor’s estimate is significantly less than those of competitors, ask why.
• Don’t let the contractor arrange financing for you. The FTC warns that you might be tricked into signing up for a home-equity loan with hefty fees or a high interest rate, or one in which the lender pays the contractor directly, giving him or her little incentive to finish the job or do it properly.

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