Attorney General's News Release

March 5, 1998

Nixon urges homeowners to take precautions against home repair, home improvement fraud this spring

Jefferson City, Mo. — Warm weather and sunny skies can bring home repair scammers out of the woodwork, Attorney General Jay Nixon says. He reminds homeowners who want to get a head start in making improvements and repairs to their homes this spring to carefully select a contractor.

"Elderly consumers are frequent targets of con artists who operate home repair and improvement scams -- thousands of dollars in personal savings can be wiped out in a short amount of time," Nixon said. "It's important to take your time carefully selecting a contractor before agreeing to any work."

Nixon's office has received more than 130 inquiries so far this year about home repair and home improvement fraud. Last year, home repair and improvement complaints ranked seventh in the number of complaints and inquiries received by the office's hot line. Complaints include scams involving driveway repair, lightning rods, siding and windows.

The operator of a Kansas City construction business was ordered to pay a $10,000 civil penalty last year after Nixon sued him for failing to complete paid-for work or to provide refunds. Nixon also obtained $13,000 in restitution, costs and penalties from the operators of a Springfield construction business last year for misrepresenting to consumers the quality of their work, when it would be completed, and for failing to complete work paid for or provide refunds.

Nixon encourages Missouri homeowners to follow these tips:

• Deal only with licensed contractors and make sure they have a current license to operate in Missouri.
• Ask friends, relatives and co-workers for recommendations.
• Ask contractors if there is a charge for an estimate before allowing them in your home. Get written estimates from at least three firms. Ask for explanations for price variations. Do not automatically choose the lowest bidder.
• Be skeptical of contractors who come to your door unsolicited or offer reduced prices because they've just completed work nearby and have leftover materials.
• Be wary of contractors who ask you to pay for the entire job up front. Your down payment should not be more than one-third of the total price. And remember, only licensed contractors and salespeople can require and accept any payments before the job is completed. Pay by check or credit card, not cash.
• Be cautious about using your home as security for a home improvement loan. If you fail to repay the loan as agreed, you could lose your home.
• Have a knowledgeable friend, relative or attorney review the contract before you sign. If you get a loan to pay for the work, consider having these documents reviewed as well.
• Be aware that you have cancellation rights. Under Missouri law, you have three business days to cancel any credit contract if the seller personally solicited and presented the contract in your home.

For more information on consumer topics, contact the Attorney General's Office, Consumer Protection Division, P.O. Box 899, Jefferson City, MO 65102, or call the Consumer Protection Hotline at 800-392-8222 (TDD: 800-729-8668).

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818