Watch out for weather-related scams
With spring and summer come the potential for severe weather in Ohio. Storms, tornadoes and related flooding can cause significant damage — and open the door for scammers to take advantage of vulnerable homeowners. That’s why it’s all the more crucial to research businesses before hiring a contractor following destructive weather.
Signs of a home-repair scam
Do you know how to spot a home-repair scam? There are some tell-tale signs. Beware of a contractor who:
- Pressures you to act immediately.
- Asks you to pay with cash or a prepaid money or gift card.
- Requests that you send money in advance to secure a loan, a grant or FEMA funds.
- Asks for personal information.
- Demands a large down-payment.
Scammers often exploit unsuspecting homeowners by demanding a large amount of money in advance, only to take the money and run. Others may perform the work, but it’s substandard. Either way, homeowners are left still facing costly home repairs.
It’s important to thoroughly vet potential contractors by:
- Researching a business before signing any contract. Obtain the contractor’s name, address and phone number, and check the company’s history with the Ohio Attorney General’s Office and the Better Business Bureau. You can also search for any previous lawsuits filed by the Attorney General’s Consumer Protection Section.
- Avoid hiring a contractor who refuses to provide proper identification, does not have a permanent place of business, cannot provide references or insists on a large payment before work begins. If your local government requires a license, ask to see the contractor’s license.
- Get written estimates — preferably from more than one contractor. Refuse to do business with any company that won’t provide a written estimate.
- Get promises or guarantees in writing. Keep contracts in a safe location in case you need to reference them.
- If possible, pay by credit card, which provides greater protection than cash or a check. If the contractor fails to perform work, contact your credit-card company as soon as possible.
- Be cautious of anyone who knocks on your door and wants to begin working immediately. Businesses that solicit you at your home must provide a three-day “right to cancel”; they should not begin the work for at least three days.
To further protect yourself:
- Do not make a large down payment. Instead, pay in increments – for instance, a third of the cost at the beginning of the job, a third after half of the work is completed to your satisfaction, and the final third at job completion.
- Look for the red flags of a traveling scam artist. If a contractor claims to have leftover materials from a nearby job or offers unbelievably low prices, be suspicious. Keep your guard up, as many fly-by-night contractors prey on homeowners in difficult situations who need work completed quickly.
The Ohio Attorney General’s Office produces a
Recovering from a Natural Disaster flyer, which can be downloaded free. The Federal Trade Commission has free resources to help educate you about
scams related to weather emergencies.
A different type of weather-related scam
In the wake of natural disasters, Ohioans should also exercise caution when asked to donate to charities linked to disaster recovery. Scammers might make claims that seem legitimate and use names that sound reputable or similar to those of well-known organizations, but they end up keeping most or all of the money they collect instead of giving it to the charitable cause they claim to support.
Signs of a charity scam:
- High-pressure tactics.
- No details about how contributions will be used.
- No written information about the charity, its mission or how it operates.
- Requests for payment to an individual, not an organization.
- Payment methods limited to cash, gift card, wire transfer, cryptocurrency or peer-to-peer transaction.
- Phone solicitors who fail to identify themselves and won’t provide written information about the cause.
Consumers are encouraged to visit
the Ohio Attorney General’s charity resources to research and obtain background information about nonprofit organizations to which they may donate money.
Consumers who suspect a scam or an unfair business practice should contact the Ohio Attorney General’s Office at www.OhioProtects.org or 800-282-0515.