New York warns of home-improvement scams

New York’s Division of Consumer Protection issued a consumer alert on May 20 warning that home-improvement scams tend to rise in late spring and summer, when renovation and repair work picks up statewide. The agency said the schemes can cost homeowners thousands of dollars and leave them with unfinished work, poor workmanship or unsafe results. The division said home-improvement scams have consistently ranked among the top five consumer complaints in New York. Secretary of State Walter T. Mosley urged homeowners to be cautious of unsolicited offers and pressure tactics as the busy season begins. ### Why is New York putting out this warning now? Late spring and summer are peak seasons for home-improvement projects, the state said, and that also makes them peak seasons for scam contractors trying to win quick jobs. The Department of State said warmer-weather demand creates openings for people who offer cheap repairs, take deposits and either disappear or leave work incomplete. (dos.ny.gov) Walter T. Mosley, New York’s secretary of state, said consumers should be wary of contractors who knock on the door offering repairs or renovation work at a “bargain price.” He said those offers can be scams, and the division said the risk is not limited to financial loss but can also include unsafe results. ### Which pitches does the state say should raise immediate concern? (dos.ny.gov) The Department of State said homeowners should be cautious if someone shows up unexpectedly, claims to have leftover materials from another job, or pressures them to sign the same day. The agency also flagged demands for cash-only payment, refusals to handle permits or paperwork, and efforts to route financing through a contractor’s preferred lender. (dos.ny.gov) Local reporting that republished the state guidance said another warning sign is a contractor who keeps discovering new urgent problems after work has begun. The state also cautioned against signing over insurance checks to a contractor. ### What does New York say homeowners should do before hiring anyone? The state told consumers to get at least three written estimates before hiring a contractor. (dos.ny.gov) The division said each estimate should spell out materials, scope of work, labor costs, estimated start and finish dates, and the payment schedule. The Department of State also told homeowners to verify credentials by asking for referrals and checking online reviews, references and complaint history through the Better Business Bureau, local consumer agencies and state records. (informnny.com) The agency said consumers should be cautious if a contractor has no physical address or frequently changes business names. (dos.ny.gov) ### Does New York State license home-improvement contractors? New York State does not license home-improvement contractors at the state level, according to the Department of State. The agency said some counties and municipalities do require licenses, including New York City, Suffolk, Nassau, Westchester, Putnam and Rockland counties, and the City of Buffalo. (dos.ny.gov) The New York attorney general’s office gives the same list and says consumers should use a contractor whose name, address and contact number can be verified. The attorney general also warns homeowners to be especially skeptical of unsolicited contractors after major storms or weather events, when demand for repairs jumps. ### What has to be in the contract? New York law requires consumers to receive a written contract for home-improvement work exceeding $500, according to the attorney general’s office. (dos.ny.gov) The contract must include the contractor’s name, address and telephone number, an approximate start and completion date, a description of the work and materials, and the agreed price. The state consumer division’s guidance also said a contract should include payment terms, warranty terms and a change-order process for extra work. (ag.ny.gov) The agency said consumers should not sign documents until they have decided to hire the contractor and should not sign forms with blank spaces. ### Where can homeowners check or report problems? The Department of State’s consumer protection division maintains complaint and consumer-assistance resources through its consumer protection pages. (ag.ny.gov) The attorney general’s office separately publishes contractor guidance, licensing links for local jurisdictions and complaint information for homeowners who believe they were misled. May 20’s alert remains posted on the Department of State website, and the attorney general’s contractor guidance page includes the local licensing jurisdictions and the written-contract requirements for jobs above $500. (informnny.com) (dos.ny.gov 1) (dos.ny.gov 2)