Tag Archives: home improvement fraud

Vermont Flood Recovery: Beware of Scams and Price Gouging

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Due to the extreme rainfall and flooding across the state, the White House issued a state of emergency for Vermont, which authorizes FEMA to support impacted Vermont counties in recovery efforts. Unfortunately, scammers take advantage of people’s heightened emotional state following disasters, and the Vermont Consumer Assistance Program wants you to be aware of targeted disaster relief scams to avoid while our communities recover from the flooding.

As we recover: Avoid Scams - Phony Charities, Government (FEMA) Relief, Dubious Contractors

Government imposter relief scams may claim to be FEMA or the State of Vermont. FEMA scams manifest as fraudulent inspectors that request fees for service, or administrative personnel that call to “verify” your information but are phishing for your personal information. Such relief help scams may even claim they can speed up your FEMA relief application for a fee.

Avoid this scam:  Connect with FEMA directly online: https://www.fema.gov/disaster/3595 and continue to follow updates from the Vermont’s congressional delegation, the Governor and Vermont Emergency Management.

Phony charities that solicit funds claiming to support recovery efforts. The Vermont way is to help our neighbors. We all want to help, whether it is through volunteering or donating money. Sadly, scammers use the same contact methods as legitimate charities (phone, online, mail).

Avoid this scam:  Please only give to valid charities that you have thoroughly researched and vetted. Use tools like the Better Business Bureau’s Wise Giving Alliance and Charity Navigator to research charities before you donate.

Dubious contractors may appear with promises to restore damages immediately in exchange for immediate payment. Such contractors urge you to act fast, may offer lower prices, and do not have credentials—though they might say they are “registered and insured,” these are unverified statements.

Avoid this scam: Vermonters must be extra critical about hiring home improvement contractors. Never pay in full upfront for a home improvement project. Make sure you have a contract. Check residential contractor registration status with the VT Office of Professional Regulation in the Secretary of State.

Please watch out for these scams and report businesses that set unconscionable price hikes on essential items, like bottled water. If you experience this practice, please report instances of price gouging to the Consumer Assistance Program by phone at 800-649-2424 or online at ago.vermont.gov/cap

More: The Vermont Attorney General’s Office flood resources page: https://ago.vermont.gov/flood-resources and the Federal Trade Commission on spotting and avoiding post-disaster scams: https://consumer.ftc.gov/consumer-alerts/2023/07/how-spot-and-avoid-post-disaster-scams-northeast

Home Improvement Fraud Has No Boundaries

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By Cristina Leiva

A National Consumer Protection Week feature. “National Consumer Protection Week (NCPW) is a time to help people understand their consumer rights and avoid frauds and scams” (FTC). 

Fraud has no boundaries: Protect your home from home improvement fraud.
Protect Your Home from Home Improvement Fraud

Improving your home can be an overwhelming process to complete on your own. Turning to a contractor can help relieve the stress, but homeowners should be aware of the existence of home improvement fraud.

Home improvement fraud happens when a contractor promises to improve your home, but leaves the project incomplete or your home in an uninhabitable condition.

Before hiring a contractor for a home improvement project, do your research:

  1. Start by reviewing the Vermont Attorney General’s Home Improvement Fraud Registry where you’ll find the names of individuals who have been criminally convicted of committing home improvement fraud in Vermont.
  2. Check the Secretary of State’s website to verify that the residential contractor is registered, as required by Vermont law.
  3. Review complaint history posted on websites like BBB.org.
  4. Contact the Consumer Assistance Program (CAP) and ask if any complaints have been filed against the contract you are considering.
  5. Ask your friends, neighbors, family, and co-workers about their home improvement experiences. These individuals are more than just connections; they are resources that can provide contractor references and warnings.

Tips for avoiding home improvement fraud:

  • Ask the contractor for references. Then, call the references and ask detailed questions about the work done, satisfaction, price, the time it took to complete, and how they found the contractor.
  • Find your contractor through trusted family or friends or trusted websites.
  • Pay in increments rather than a large sum/total payment upfront.
  • Once you’ve chosen who you want to hire, determine the exact timeframe and the estimated price for the job. Compare this price to makeups for similar projects (get at least three estimates).
  • Get all agreements in a written contract. Verbal statements are difficult to prove.
  • Keep your down payment to a minimum.
  • If possible, make your payment upon completion of the work; or at least make payments as the equivalent portion of the work is completed. That way, if the contractor walks off the job, you haven’t lost any money.
  • Don’t make the final payment until you are completely satisfied with the work.
  • Always request proof of insurance.

Warning signs of less than reputable contractors:

  • Door-to-door solicitations.
  • Claims that the contractor was passing by and noticed a problem with your home.
  • Discounts for finding other customers or to use your home as a demo model.
  • Offers a good price for materials left over from a previous job.
  • Only accept cash payments.
  • Uses high-pressure sales tactics and demands a decision on the spot.
  • Asks you to pay for the entire job or a substantial portion of the job up front.
  • Suggests that you borrow money from a lender the contractor knows.
  • Refuses to provide proof of insurance or legitimate contact info.

Before hiring a contractor, you should know that while Vermont law does not require all home improvement contracts to be in writing, you can request a written contract outlining the terms of the agreement. If there isn’t a written contract, the contractor may disclaim liability for complications, or dispute the agreed-upon terms. When considering a contract, it’s best to read each page and verify acceptance before you sign it. Fraudulent contractors could conceal important documents underneath the agreement that could have dire consequences, including the loss of your home.  

Avoid home improvement by: Ask trusted family, friends, and neighbors for references. Get a list of clientele recommendations from the contractor. Research online and read reviews: Check online and CAP complaint history and the HIF Registry. Contract Tips: Get it in writing! Pay in increments rather than full payment. Avoid: Door-to-door solicitors. High-pressure sales. Requirements to pay for the entire job or a substantial portion of the job up front. VT Consumer Assistance Program. 1-800-649-2424.
Avoid Home Improvement Fraud by the Consumer Assistance Program

If you have a problem with a home improvement project or want to research a contractor before hiring them, contact CAP for assistance by visiting ago.vermont.gov/cap or by calling 1-800-649-2424.

ADDENDUM: As of April 1, 2023, registration of certain residential contractors is required. Learn more about the requirements from the Office of Professional Regulation of the Vermont Secretary of State. 

Residential Contractor FAQs: https://sos.vermont.gov/residential-contractors/residential-contractor-faqs/ 

Residential Contractor Statutes, Rules & Procedures: https://sos.vermont.gov/residential-contractors/statutes-rules-resources/