Protect Yourself from Contractor Fraud; an Unseen Danger of Trusting
Services that Prescreen
Tragedies such as Hurricane Katrina and the ongoing war on
terrorism in Iraq affect millions of people. Such catastrophes can
bring out the best in some people, responding to the suffering of
victims. And the worst in others, who use such disasters to prey
upon their fellowman.
Floods, tornadoes, earthquakes, fires, and other natural disasters,
as well as those created by man; perfect feeding ground for scam
artists. When it comes to rip-off professionals cashing in on the
misery of others, fraudulent contractors rank high on the list.
Consumers get bilked out of billions of dollars annually from crooked
contractors. Through Workmen’s Compensation or construction
fraud – residential and commercial; by handing over huge sums
of money upfront for work never performed. For poor workmanship
not up to building code standards, and projects abandoned before
completion.
Elderly homeowners are especially at risk; being hit upon by construction
fraud con artists who advertise discounted prices for a quick response.
An offer hard to refuse for persons living on a limited income.
Take the case of 82-year old Virginia Rice of Pensacola, Florida.
After 2004’s Hurricane Ivan, fraudulent contractors rushed
to north Florida, ready to cash-in on damage caused by the storm.
An incident dubbed another “Fleecing of America” by
NBC News Correspondent Kerry Sanders, in which Rice was one of over
1,000 homeowners victimized.
After paying a contractor $36,000, Rice was left with a roof that
sagged, requiring bracing; expensive cabinets had disappeared and
paint sprayed helter-skelter throughout the kitchen. The only rooms
left intact were her bedroom and bathroom – which doubled
as a kitchen until repairs could be made.
More recently, the contractor fraud and corruption connected to
construction work in Iraq has bilked tax payers out of billions
of dollars. And stymied efforts to restore a sense of peace and
equilibrium to a nation ravaged by terrorism and corruption.
As AP National Writer Deborah Hastings points out in an August
2007 article on construction in Iraq, “Corruption has
long plagued Iraq construction. Hundreds of projects may never be
finished…congress gave more than $30 billion to rebuild Iraq,
and at least $8.8 billion of it has disappeared….”
In response to “the war on contractor fraud,” the U.S.
Department of Homeland Security’s Federal Emergency Management
Agency (FEMA) urges homeowners to be extremely cautious when hiring
contractors. Frazzled homeowners anxious to begin the process of
rebuilding disaster-damaged property are statistically “easy
prey” for unscrupulous operators.
Among other screening practices, FEMA suggests checking with the
Better Business Bureau to ensure they are a licensed contractor;
bonded and reputable. They also advise homeowners to request proof
of contractor insurance; including liability and Workers’
Compensation. And most importantly, to get everything in writing.
Featured on Global News in 2006 as “an online match made
in heaven,” HandyCanadian.com represents to many Canadians
what HandyAmerican.com has come to represent to a growing number
of Americans trying to find reliable contractor services in their
area.
A project-owner-to-contractor matchmaking service with a proven
track record as a valuable teaching resource; helping business and
homeowners learn how to screen for a reputable contractor, drastically
reducing the risk of being scammed.
Co-Founder Max Sheppard utilizes the platform of his free contractor
referral service web sites to educate consumers. How to critique
and find a reliable contractor, and avoid becoming another statistic
in the growing number of victims who fall prey to contractor con
artists each year.
Sheppard also warns unsuspecting homeowners of yet another “unseen”
hazard. Web sites that “help” consumers find prescreened
contractor services; giving homeowners a false sense of security
when hiring a contractor.
Consumers are left with the mistaken impression that all contractors
connected with find screened contractor services are reputable and
in good standing; with credentials intact. When in fact, contractor
information could be outdated or incorrect due to poor screening
procedures.
One such web site that provides verified contractor referral service
includes a disclaimer, buried deep within the pages of their web
site: “Member service professional information confirmed
as described above may change or expire over time…we cannot
guarantee that profile and screening information is accurate.”
A glaring contrast to the boast, “(Our) service professionals
are thoroughly screened before being included in our network so
you can be confident in your selection,” posted in a
more high-profile spot on the same web site.
The bottom line? Consumers need to exercise the same caution and
credential verification when using a prescreened contractor online
matchmaking service, as when using any other consumer-to-contractor
service provider.
The safest, most thorough and accurate way to screen and evaluate
a contractor is by the homeowner at the time of hiring, emphases
Sheppard.
“No matter how reputable or unscrupulous a contractor
service provider may be, the homeowner is still the one who pays
the bill in the end.”
If you feel you have been victimized by contractor fraud, contact
the Federal
Trade Commission (FTC) Bureau of Consumer Protection. Visit
to submit a complaint online. Helping FTC to investigate fraud;
this can lead to law enforcement action and possible conviction.
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