FINANCING OPTIONS for your new roof.

Here are some resources to help you navigate and avoid fraud in roofing financing and other home improvement projects.

The Federal Trade Commission (FTC) provides guidance to help consumers avoid fraud related to home repairs and financing, including roofing projects. Their resources offer valuable advice on recognizing and preventing scams.

Key Recommendations from the FTC Consumer Advice:

• Verify Contractor Credentials: Ensure that any contractor you consider is licensed and insured. Consult your state or county government to confirm a contractor’s license and request proof of insurance from the contractor.

• Seek Recommendations: Obtain contractor recommendations from trusted individuals. Check with local Home Builders Associations and consumer protection officials for any complaints against a contractor. Additionally, search online for the company’s name alongside terms like “scam,” “review,” or “complaint.”

• Obtain Multiple Estimates: Secure written estimates from several contractors. Each estimate should detail the work to be performed, materials to be used, completion timeline, and total cost. Be cautious of significantly low bids and seek explanations for any substantial differences among estimates.

• Review Contracts Thoroughly: Before signing, ensure the contract includes the contractor’s name, address, phone number, and license number, as well as an estimated start and completion date. Document any promises made during discussions, and ensure all blank spaces are filled. Be aware of your right to cancel the contract within three business days if signed at your home or a location other than the contractor’s permanent place of business.

• Be Wary of Upfront Payments: Avoid paying the full project cost upfront. Some states limit the amount a contractor can request as a down payment. Consult your state or local consumer agency to understand the laws in your area. Withhold final payment until the work is completed to your satisfaction.

• Avoid High-Pressure Sales Tactics: Be cautious of contractors who pressure you to act quickly, ask for cash payments, or offer to arrange financing through a lender they know. These can be signs of potential scams.

Source: consumer.ftc.gov /  Consumer Advice