FRAUD PREVENTION
The National Center for the Prevention of Home Improvement Fraud is a 501(c)(3) nonprofit organization whose mission is to educate homeowners on how to protect themselves from becoming victims of home repair contractor fraud and scams.
Phae Moore, founder and executive director of NCPHIF, has authored an instruction guide, “Don’t Even Think About Ripping Me Off!” ($14.95 plus shipping and handling). It answers questions about how to find, select, evaluate, hire, oversee and pay contractors.
The organization also depends on volunteers and donations to keep services free for homeowners.
For more information: PreventContractorFraud.org or ncphif.org
PROTECT YOURSELF
These tips come from the National Center for the Prevention of Home Improvement Fraud.
Questionable contractors: Usually don't like written contracts; want to avoid permits and building inspections; don't like to explain how they plan to do aspects of the job and don't like to show proof of liability insurance.
Do not use a contractor who:
- Is going door to door.
- Wants to inspect your property when you are not home.
- Asks you to get any required building permits.
- Offers a discount because they have "leftover materials."
- Accepts only cash.
- Tries to scare you into repairs, claiming they are urgent.
- Asks you to "deed" or "transfer title" to your property or sign a promissory note secured by your home.
Source: www.ncphif.org
National home repair fraud expert Phae Moore has a special affection for seniors, especially those who are trusting and vulnerable to scam artists.
Her own grandmother fit that description, and she was the victim of a dishonest roofer in North Carolina. That was many years ago, but it still upsets Moore to remember how easy it was for her grandmother to be taken in financially and emotionally.
The upside is that the incident pushed Moore to speak out against home contractor fraud. At first it was just a hobby, she says, but the speaking engagements increased so that in 2009 she established the National Center for the Prevention of Home Improvement Fraud, a nonprofit that educates homeowners on how to protect themselves from becoming victims of home repair fraud and scams. It's headquartered in Atlanta, but Moore speaks nationally to all types of groups, including seniors.
“Elderly are especially vulnerable because they are from the ‘trusting era,’” Moore says. “If you say you are a contractor, you’re a contractor. They don’t question it.”
Seniors are also most likely to live in homes that need repairs. The U.S. Department of Health and Human Services estimates that 60 percent of older people live in a home that is more than 20 years old. Improvements are often needed for seniors to stay in their homes as they age.
Moore can recount story after story she’s heard of elderly homeowners who were taken in by unscrupulous home repair contractors. There’s the Atlanta woman on a fixed income who called Moore after she paid $4,800 to have work done on a porch and the contractor left without finishing the job. The porch was later deemed unstable by a building inspector, and the whole thing had to be torn down, Moore said.
Moore calls contractor fraud a “multibillion-dollar business.”
She said it’s no longer good enough to check out contractors through the Better Business Bureau and get a few references. You have to become aware of fraudulent tactics and be proactive about protecting yourself, she says.
She teaches seniors — and other homeowners — how to find and check out reputable contractors, how to budget and set up a payment schedule, and how to monitor and track work progress. She even goes over the building permit process and how to deal with insurance claims.
Moore’s two most important tips for seniors:
• Do not sign anything you don’t understand.
• Do not give any money up front.
Also, seniors should never hire a contractor who knocks on their door to solicit work. Moore said this is when a lot of scams happen. Find your own contractor and always get three complete work estimates before making a decision, she said.
“If at all possible, seniors, especially my wonderful ladies, should have someone with them when a contractor comes to their home. That way, they aren’t as vulnerable. Take a picture of the contractor. Take a picture of the truck he is driving, the license plate number,” Moore said.
Homeowners who have been affected by disasters and first-time homeowners are also vulnerable to fraudulent contractor schemes, Moore said. She recently spoke to new homeowners through Atlanta Habitat for Humanity.
She will address seniors from 5:30-6:30 p.m. Aug. 5 at the East Cobb Senior Center, 3332 Sandy Plains Road, Marietta; and from 3-4 p.m. Aug. 18 at the North Cobb Senior Center, 3900 S. Main St., Acworth.
The seminars are free, but registration is required: East Cobb Senior Center, 770-509-4900; North Cobb Senior Center, 770-975-7740.
About the Author
