Sheriff’s Office asking citizens to be cautious of home improvement contractor scams

Blount County, Tennessee – Sheriff James Lee Berrong is cautioning citizens about a seasonal increase in home improvement contractor scams.

Earlier this week, deputies took a report from a citizen who was approached by a man going door to door who said he was a paving contractor.  The contractor told the individual he could pave his driveway because he had extra material left over from another job. After agreeing to allow the paving to be completed, the citizen became suspicious of the contractor and his workers and realized he may be the victim of a scam. When deputies arrived, the contractor could not produce any form of formal business operations, nor could he provide a list of clients in Tennessee he had provided work for in the past. The deputies also observed that the vehicles were from out-of-state, and the vehicles they were driving were registered out of state.  After deputies arrived, the contractor appeared to be attempting to leave and get his crew away from the area. Though the call did not rise to the level of being criminal, deputies investigated it because of the ongoing issue of similar contractor scams.

These scams are not new, but we do see an increase in them during the summer months. These scams involve deceitful tactics by individuals posing as legitimate contractors, often resulting in shoddy work, unfinished projects, inflated costs, and even the complete disappearance of the contractor prior to finishing the job. Here are some signs of a home improvement scam to look for, as suggested by the Federal Trade Commission:

• Scammers knock on your door looking for business because “they are in your area.”
• Scammers say they have some materials left over from a previous job.
• Scammers pressure you for an immediate decision.
• Scammers ask you to pay for everything up front or only accept cash.
• Scammers ask you to get any required building permits.
• Scammers ask you to borrow money from a lender they know.

Here’s some advice to help protect yourself and your money, provided by the Tennessee Office of the Attorney General:

• In Tennessee, a contractor’s license is required before bidding or price negotiations when the total cost of the project is $25,000 or more.
• For work of less than $25,000, consumers should check with their local government’s building codes office  to confirm whether a contractor needs a state license or local license to perform home improvement, electrical, plumbing or HVAC work, as well as their permit requirements for inspections. TDCI’s website includes information on who needs a home improvement license, a limited licensed plumber license, and a limited licensed electrician’s license.
• Before hiring a contractor, visit Verify.tn.gov, a free online database where you can check the license status of thousands of professionals and businesses.
• For complaint and disciplinary history, contact the Board for Licensing Contractors at (615) 741-8307 or by emailing [email protected]. The Division of Consumer Affairs can also provide complaint history for companies via email at [email protected].
• Get several bids and check references.
• Look up reviews and complaints for the business on independent platforms such as the Better Business Bureau’s website. The more platforms you check, the better.
• Check the Tennessee Secretary of State’s business search website to see if they are organized in Tennessee, or if they have a Certificate of Authority to operate in Tennessee if they are organized in another state.
• Check with your county clerk’s office to confirm that the contractor has the appropriate local business license to operate. A business license is separate from a contractor’s license. Construction contractors generally need a county business license if their annual gross receipts exceed $3,000.  
• Make sure the contractor is insured to cover workers’ compensation, damage and general liability insurance by requesting copies of the contractor’s insurance certificates showing a current effective date.
• Never pay cash; and do not pay the total amount before the work is complete or turn over your insurance check. (Consider paying with credit cards with special protection).  State law prohibits requiring more than one-third down payment.
• To see even more tips on hiring contractors, visit the Board’s website.

Sheriff Berrong does not want to see any of our citizens scammed out of their hard-earned money and taken advantage of by anyone. If you are approached by someone who exhibits any of the signs listed, don’t hesitate to call law enforcement and report the activity.