Red flags for potential contractor scams

Red flags for potential contractor scams

| Nov 10, 2018 | Real Estate Litigation |

While it has been more than two years since the big floods of August 2016, many Louisiana residents are still struggling with the after-effects of this event. Some of the problems involve unethical contractors. Anyone who needs a contractor whether after a natural disaster or even just when wanting to do a remodel on their home should be aware of what to watch for when selecting who they will work with.

According to the Better Business Bureau, some signs that a contractor may be fraudulent include the requirement for upfront cash only payments or that a homeowner sign over their insurance money directly to the contractor. A contractor that indicates work can be done in far less time than other vendors, especially with a price much lower than competing bids, may also be someone to be suspicious of. Another tactic scammers may use is telling a homeowner they have supplies and materials left from another job nearby that can be used on to save the homeowner money.

Business Insurance notes that homeowners should be weary of contractors who initiate the contact with them versus allowing the homeowner to reach out to the contractor. Any vendor that tries to instill fear in a homeowner and then presses for an immediate agreement should be checked out further.

Louisiana residents should always take the time to verify that a contractor is licensed, has full insurance and is bonded. References can be useful as well and may even be best when received from people the homeowner knows.