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Spring Is a Time to Be Wary of Home Renovation Fraud

February 10, 2005

Edmonton... In recognition of National Fraud Awareness Month, and with spring just weeks away, the Alberta government is urging consumers to protect themselves against fraud when planning home renovation projects as a high percentage of home renovation fraud occurs each spring.

Home renovation fraud is a growing problem that costs Albertans thousands of dollars each year. Consumers should take the following steps to protect themselves:

• if the contractor wants payments upfront, check to see if they are licensed and bonded by contacting Government Services' Consumer Information Centre toll-free at 1-877-427-4088;
• check references and confirm the contractor's complaint history through the local Better Business Bureau;
• always get estimates and contracts in writing which include key dates and materials to be used;
• beware of unsolicited door-to-door offers or deals from contractors who claim to be in the area;
• consumers should also consider a holdback provision in their contract, which allows consumers to deal with any deficiencies and ensure suppliers have been paid.

Since 2003, a joint task force of the Calgary Police Service and Alberta Government Services carried out a series of investigations related to home renovators who were preying on the elderly in Calgary. Thirteen individuals were charged with offenses under the Fair Trading Act or the Criminal Code of Canada with sentences ranging from $1,000 fines to a 12 month jail term.

In Edmonton and surrounding areas, six home renovators and two companies have been found guilty of offenses under the Act or the Criminal Code in the last two years. Judgments included more than $85,000 in fines and $90,000 in compensation to affected homeowners. One home renovator received a three-year jail sentence while one previously convicted contractor is facing new charges under the Act.

Consumers are encouraged to check www.gov.ab.ca/gs for free tipsheets dealing with home renovators, identity theft, and telemarketers. Some general tips to remember include: take your time when making purchases or investment decisions; check the reputation of the people and the products you are dealing with; ask about refund policies and warranties before you buy; prepare a list of questions in advance when considering a major purchase; and resist high pressure sales tactics. Also, if something sounds too good to be true, it probably is.

February has been proclaimed National Fraud Awareness Month in support of a joint campaign between federal and provincial governments and private industry. It is the largest campaign of its kind in Canada and is supported by the International Consumer Protection and Enforcement Network representing 30 nations. For more information, visit the Competition Bureau's website:

http://www.competitionbureau.gc.ca/epic/site/cb-bc.nsf/en/home

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Terry Cunha, Communications
Alberta Government Services
(780) 415-6051