Be Aware of Advance Payment Scams

After a hurricane or some other disaster, “contractors” seem to come out of the woodwork looking for people to take advantage of. They often show up at people’s homes, unannounced, looking for work. They offer a seemingly good deal on repairs without a contract. But they also require a huge amount of money up front.
By now, you probably know how this story ends. The “contractor” takes the money, never to be seen again. The homeowner has used all their life savings to pay for these repairs, but no work is ever started. The homeowner is out possibly tens of thousands of dollars.
These advance payment scams work when a person claiming to be a contractor demands a large payment from a homeowner before starting work on a project. They pressure customers to pay the full amount for a project before any work is done, often with the promise of a “great deal” or by creating a sense of urgency. However, they take the money and run.
These scammers are rampant in Florida, and unfortunately, they give reputable contractors a bad name. Licensed and insured contractors who are legit need to ensure they are doing their due diligence and following laws to a T to ensure that they do not get in trouble with the law.
Is it a scam? Look for these red flags:
- High pressure tactics. Scammers often try to rush you into a decision by claiming limited-time offers or saying they have a special deal if you sign up immediately.
- Demanding full payment up front. A reputable contractor will usually ask for a reasonable down payment, but never the entire amount before starting work.
- Cash only. Scammers often prefer cash payments as it is harder to trace.
- No written contract. Be wary of contractors who refuse to provide a detailed written contract outlining the scope of work, payment schedule, and completion deadlines.
- No license or insurance. Check if the contractor holds the necessary licenses and insurance to operate in your area.
- Door-to-door sales. Be cautious of contractors who show up at your door unannounced claiming to have extra materials from a nearby job.
How to Avoid Being a Victim
Being a victim of a scammer can leave you penniless. Here’s how to avoid getting scammed:
- Get multiple quotes. Compare bids from at least three different contractors to ensure you are getting a fair price.
- Verify licenses and insurance. Ask for proof of licensing and insurance before hiring a contractor.
- Read the contract carefully. Never sign a contract without thoroughly understanding all the terms, including payment schedules and completion deadlines.
- Never pay in full. Pay in stages based on project milestones.
Contact Us Today
Both customers and contractors alike should be wary of payment scams. A contractor engaging in these scams can lose their license, be forced to pay restitution, and even get jail time.
A good contract can help you prevent disputes and protect you when conflicts do come up. Protect yourself with help from a Florida construction contracts lawyer from Linkhorst & Hockin, P.A. Schedule a consultation today by filling out the online form or calling 561-626-8880.
Source:
agingcarefl.org/scams.html#:~:text=Watch%20out%20for%20%E2%80%9Cfly%2Dby,job%20are%20paid%20in%20full.