Niagara police advise how to avoid contractor fraud
Published April 28, 2022 at 2:03 pm
With spring finally in the air many Niagara residents are itching to kickstart their long awaited renovations projects. However Niagara police have advised those eyeing renovations to be careful when hiring a contractor.
When on the lookout for a company to shingle a roof, repair a driveway, replace a fence, or install new windows, or any other project, police stress the “critical” importance of hiring the right contractor for the job.
NRPS described the choice as key “to getting not only excellent workmanship but also, in some isolated incidents, preventing becoming a victim of a criminal fraudster or scam.”
The most common scams reported to police typically involve door-to-door sales, undercutting service fees, and large cash down payments.
In some cases the contractor will begin the work, often just demolition, but anything done is often sub-par or unfinished. At this stage the con artist contractor often asks for more funds for materials or final payment.
Once the cash changes hands they are usually never heard from again. The victim is often left with their home in a state of disrepair.
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These scammer can be “very aggressive and pushy,” police say in pursuit of the payoff, hounding a potential victim until they pay up. Sometimes they may even have false company materials, such as business cards, pamphlets and contracts.
“Central to the sales pitch is the anonymity of the contractor, workers and company, later research on the contractor yields a lack of any official presence online, any registration with local Chambers of Commerce, Better Business Bureau or otherwise,” said NRPS.
The hustler will often provide the victim a phone number and answer calls for a short period to reassure them. Once the money is sent, however, the line is disconnected. Usually this is the only way to contact the swindler.
Police issued the following tips for residents to keep themselves safe from such fraudsters;
- Get recommendations from people you trust.
- Do your research online.
- Don’t be pressured to make a quick decision. Take a minute.
- Prior to initiating work ensure the contractor is insured.
- Get multiple written estimates.
- If it sounds too good to be true, it likely is.
- Check references of past jobs.
- Avoid cash deals.
- Be leery of unsolicited offers via the phone, or door to door.
Another important point is to ensure any work agreed to is specified in a contract. “Put it on paper,” police say.
- Work requested and agreed upon.
- Dates – Start, benchmarks, and finish.
- Exact Cost of the project.
- Payment Schedule – 10% Deposit at the start, final full amount upon satisfactory completion of agreed upon work.
- Acquire a receipt.
- Acquire a guarantee / warranty information.
Claims are most often settled in civil court proceeding. Police encourage any victims of fraud to report their losses to 905-688-4111.
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