Take Shelter from Home-related Scams

As temperatures drop and heating bills rise, you might be shopping for ways to improve your home's energy efficiency. While legitimate products and services exist, scammers use the transition period from fall to winter to con unsuspecting homeowners with too-good-to-be-true offers. Insulate your defenses against home-related scams by learning about them before the season’s first snowfall.

What is a home-related scam?

Home-related scams are deceptive practices that target homeowners. Scammers often present themselves as new companies looking for new business. Others pose as utility company representatives sharing exclusive deals. In either case, the product or service is rarely delivered as promised. 

6 Signs of Home-related Scams 

Crooks use a variety of devious tactics to open your wallet. Stay alert to these common red flags: 

1. Unrealistic promises. Thieves often entice victims with claims of drastic savings or immediate results. But they are often left with overpriced or ineffective products.
2. High-pressure tactics. Scammers frequently push their victims to make quick decisions by claiming that the offer is valid for “two more hours” or “today only”. Legitimate businesses allow time for comparison shopping.
3. Upfront payment demands. Be wary of contractors or service providers who require full payment before work begins. They may never show up to complete the work. Reputable companies typically request partial payment or progress-based installments.
4. Unsolicited offers. Exercise caution with unexpected emails, calls, or door-to-door salespeople offering deep discounts on home improvement services or “free” energy audits. 
5. Vague or non-existent contracts. Bad actors avoid providing detailed written agreements. Always insist on clear, written contracts that outline all terms and conditions.
6. Unusual payment methods. Requests for payment via wire transfer or gift card are major red flags. The business should accept traceable payment methods like checks or credit cards.

Protect Yourself from Home-related Scams

Leave scammers out in the cold this season by taking steps to prevent a home-related scam. Here are a few suggestions.

• Get multiple quotes. Obtain estimates from several reputable contractors for any home improvement project. This helps you understand fair market prices and identify unusually low offers that could be scams.
• Research the business. Go online and read recent reviews from websites or apps, like Yelp, which do not allow businesses to remove negative reviews. Also, check their business license with the appropriate regulatory agency in your state. It might reveal the business has negative legal action pending.
• Verify licenses and insurance. Always check that contractors hold active licenses and valid insurance coverage. Contact your state licensing agency to confirm their credentials and ask for proof of insurance. Always verify credentials before sharing personal information or granting access to your home.
• Understand your rights. Review the cancellation policy in the contract. Familiarize yourself with consumer protection laws, such as the Cooling-Off Rule, which gives you three business days to cancel certain contracts. 
• Document everything. Keep detailed records of all interactions, including copies of contracts, receipts, and correspondence related to home services or improvements. They could prove invaluable if you need to file a complaint. 

If you suspect a home-related scam, file a complaint with the Better Business Bureau and the Federal Trade Commission. These agencies investigate scams and publish consumer alerts to help protect others in your community.