Avoiding Home Repair Fraud

Contracts:

(1) Door-to-door salespersons with no local connections who offer to do home repair work for substantially less than the market price.

(2) Solicitations for repair work from a company that lists only a telephone number or a post-office box number to contact, particularly if it is an out-of-state company.

(3) Contractors who fail to provide customers references when requested.

(4) Persons offering to inspect your home for free. Do not admit anyone into your home unless he or she can present authentic identification establishing his or her business status. When in doubt, do not hesitate to call the worker’s employer to verify his or her identity.

(5) Contractors demanding cash payment for a job or who ask you to make a check payable to a person other than the owner or company name.

(6) Offers from a contractor to drive you to the bank to withdraw funds to pay for the work.

(1) Get all estimates in writing.

(2) Do not be induced into signing a contract by high-pressure sales tactics.

(3) Never sign a contract with blank spaces or one you do not fully understand. If you are taking out a loan to finance the work, do not sign the contract before your lender approves the loan.

(4) Remember, you have 3 business days from the time you sign your contract to cancel any contract if the sale is made at your home. The contractor can-not deprive you of this right by initiating work, sell­ing your contract to a lender, or any other tactic.

(5) If the contractor does business under a name other than the contractor’s real name, the business must either be incorporated or registered under the Assumed Business Name Act. Check with the Secretary of State to see if the business is incorporat­ed or with the county clerk to see if the business has registered under the Assumed Business Name Act.

 (6) Homeowners should check with local and coun­ty units of government to determine if permits or inspections are required.

(8) Determine whether the contractor has the proper insurance.

(9) Do not sign a certificate of completion or make final payment until the work is done to your satisfac­tion.

(10) Remember, homeowners should know who provides supplies and labor for any work performed on your home. Suppliers and subcontractors have a right to file a lien against your property if the general contractor fails to pay them. To protect your property, request lien waivers from the general contractor.

Note:
Air Conditioning Contractors of America ("ACCA") promotes business practices and ethical standards consistent with these consumer concerns.  The HVAC contractor identified on this brochure is a member of ACCA and/or the Northern Illinois Chapter of ACCA ("NIACCA").

If You Think You Have Been Defrauded Or You Have Questions...

Basic Terms To Be Included In A Contract:

1) Contractor’s full name, address, and tele­phone number. Illinois law requires that per-sons selling home repair and improvement serv­ices provide their customers with notice of any change to their business name or address that comes about prior to the agreed dates for beginning or completing the work.

(2) A description of the work to be performed.

(3) Starting and estimated completion dates.

(4) Total cost of work to be performed.

(5) Schedule and method of payment, includ­ing down payment, subsequent payments, and final payment.

(6) A provision stating the grounds for termi­nation of the contract by either party. However, the homeowner must pay the contractor for work completed. If the contractor fails to com­mence or complete work within the contracted time period, the homeowner may cancel and may be entitled to a refund of any down pay­ment or other payments made towards the work, upon written demand by certified mail.

Homeowners should obtain a copy of the signed contract and keep it in a safe place for reference as needed.