Morris County Prosecutor Robert Carroll, Chief of Detectives Robert McNally, and the Morris County Police Chiefs Association advise the community to be aware of an ongoing scam targeting residents of Morris County – unlicensed contractors who approach homeowners and attempt to solicit home improvement projects, only to pocket their money without doing the agreed-upon work.
A contractor scam is when a person is hired to complete a home improvement when that person has no intention of completing the job. In many cases, the scammer pockets the deposit and disappears before performing any work. A potentially worse outcome is the scammer who actively damages your home in addition to taking your money. These fake contractors perform some work on your home but are unskilled and overcharge for their services. They complete the work poorly and leave you worse off than before.
Sometimes, civil disputes arise between contractors and clients. However, there are also scam artists preying on people and committing outright fraud. In those cases, it rises to the level of a crime.
Morris County law enforcement agencies have received several reports of similar scams in the last few months, in which fraudsters will approach a home.
The Contractor’s Registration Act requires that all home improvement contractors register with the N.J. Division of Consumer Affairs and display their registration number listed (NJHIC#), at the following places:
- within their places of business (the original registration certificate)
- their advertisements
- on their business documents, contracts and correspondence with consumers
- on their commercial vehicles
Prevention Tips to Help Avoid Falling Victim to this Scam:
- If possible, first check with local friends and family for contractors that have completed work for them. These are the most reliable references that you could get to prevent fraud.
- Be wary of contractors who approach your home unsolicited. If you do not initiate the contact with them, you likely do not need the work that they are offering.
- Look for online reviews. While a limited online presence does not necessarily mean the contractor is a scammer, it could be an indication that the contractor made a new business name due to previous legal issues or negative reviews. Be sure to read reviews from different online sources.
- Ask for customer references and photographs of previous work.
- Check with your town. Some municipalities throughout the county keep a list of contractors who have opened and successfully completed permits for their work.
- Verify their credentials.
Licensing - They must get a general contractor license to prove their experience, coordination, and skills. This guarantees that the contractor can meet the strict codes and regulations the government creates. The New Jersey Division of Property Management and Construction provides a tool to look up a contractor's certifications. You can get the necessary information from the contractor and should immediately decline their offer if they cannot provide it.
Permits - Many towns require solicitors to obtain a permit with municipal government. Check with your local town hall to check a solicitor’s permit status.
- Get everything in writing. For home improvement contracts over $500, make sure you get the terms and conditions in writing that include the contractor’s name and information, proof of commercial general liability insurance, scope of the work agreed upon, and statement of guarantee or warranty. The scope of the work should be listed and priced clearly, and the contract should outline at what point in the project payments are due.
- Take your time to think it through. A common element of a contractor scam is a solicitor pressures a resident that they are quickly in need of their services immediately. They don't want you taking your time to verify their claims or do your due diligence.
- Seeking large payments upfront. As a general practice, contractors ask for a deposit. New Jersey has laws prohibiting home improvement contractors from demanding final payment upfront.
- Legitimate contractors will not tell you to provide money card information or wire money, or ask for cryptocurrency.
- If an unsolicited contractor tells you something needs to be repaired, inspect it for yourself. Don’t take their word for it.
Morris Plains Police Chief and Morris County Police Chiefs Association President Michael Koroski said: “Most of our municipalities enacted ordinances to prohibit businesses from soliciting without a local permit. The municipal permit process includes a background check, so that companies and their employees can be verified. Homeowners should be highly suspicious of door-to-door sales, and should be guided by the principal of ‘if it sounds too good to be true, it probably is.’ When in doubt, call your local police department, and always report suspicious activity immediately.”
To report any suspicious contractors on your property, contact your local police department.
