KC-area homeowners are being scammed on renovations. Here are red flags, how to report
Paying a contractor to do work on your home requires a lot of trust. Recently, a Warrensburg family had that trust broken after spending tens of thousands of dollars on construction work that didn’t deliver.
Kristyn and Nathan Frazee told The Star that they paid Eric Eberhart, a contractor with Clay County company JSE Construction, more than $28,000 for incomplete and poorly done work on their home.
The family took to Facebook in May to warn others of potential construction scams.
“Building a house takes faith, courage, and patience. It can be stressful enough on its own with everything that goes into it with planning. Sadly our family has fallen victim to the biggest scam we never thought would happen,” Kristyn said in the post.
Contractor scams have been on the rise, according to the Inspection Support Network, a company that offers home inspection software to businesses. During the pandemic, property owners lost nearly $82 million in home improvement scams. Since 2007, more than 6,000 scams have been reported to the Federal Trade Commission each year.
What is a home improvement scam?
Home improvement scams can range from shoddy work to fake invoices for services not rendered, according to Curbio, a national real estate tech company. Examples of scams include asking for upfront payment without completing the work, lowballing quotes for services, using unnecessary material substitutions or not pulling the proper permits for the project, according to the tech company.
Eberhart, the contractor that the Frazees hired, has been ordered by Cass and Jackson County courts to pay multiple former customers for shoddy or incomplete work.
In 2018, Mary Ann Silvius of Kansas City, paid Eberhart $17,300 to replace a two-car detached garage, according to public court filings. Eberhart told her they were “good with the city” and that everything had been approved. But Silvius’ lawyer alleged that a review of the city’s permits website revealed “no permit was ever issued” for her project.
How do you spot a home improvement scam?
Although some contractors may come recommended, there are still some red flags to look out for if you are looking to hire a new contractor for a home improvement project, according to the Federal Trade Commission.
In general, the commission advises that contractors who may be running scams often use these tactics:
Offer materials left over from a previous job
Pressure clients for an immediate decision
Ask clients to pay for everything upfront
Ask clients to obtain their own building permits
Suggest borrowing money from a lender that they know personally
The Frazees said they decided to hire Eberhart because he came referred, but they warned others that references are not enough when deciding on a contractor.
“NO MATTER WHAT RESEARCH ANYONE (you’re) ABOUT TO HIRE EVEN IF THEY ARE REFERRED,” Kristyn said in a Facebook post.
Where can you report a home improvement scam?
Customers have multiple options for reporting fraudulent contractors.
Both Missouri and Kansas have consumer protection programs that can help people who want to report a scam. Organizations like the Home Builders Association of Greater Kansas City and the Better Business Bureau of Greater Kansas City can also be helpful resources.
Before reporting a contractor, the FTC suggests consumers try to resolve the issue with the contractor and document everything along the way. When corresponding with the contractor, make sure to follow up phone calls with a letter sent by certified mail and request a return receipt so you have evidence that the contractor received the letter.
Check out this sample complaint letter you can send to a business before reporting them or filing a lawsuit. The FTC also advises that consumers keep any other notes and documents they have related to the project.
If you choose to report the contractor, here are some good places to start:
Missouri Consumer Protection Hotline
800-392-8222
Kansas Consumer Protection Office
800-432-2310
https://ag.ks.gov/complaint-center/consumer
Better Business Bureau of Greater Kansas City
816-421-7800
https://www.bbb.org/scamtracker
Home Builders’ Association
816-942-8800
Federal Trade Commission
When to sue?
If the issue can’t be resolved with the contractor, customers can consider hiring a lawyer. However, winning a lawsuit doesn’t mean you will immediately get a refund from the contractor, according to Jason Rew, a Blue Springs attorney working with the Frazees. Oftentimes, plaintiffs must pursue assets like real estate, bank accounts or heavy equipment to cash in their judgments.
Since 2017, Eberhart has been ordered to pay numerous companies that claimed he owed them money and three customers who alleged he did shoddy work, amounting to tens of thousands of dollars in judgments, according to court records.
Although the judge in Silvius’ case ordered Eberhart to pay her a total of $17,863, she has not seen any of the money, The Star reported.
The Frazees decided to share their experiences on social media instead of going to court after their lawyer warned them that they may not get their money back.
Consumers are always allowed to air out their grievances with businesses online and are protected by the Consumer Review Fairness Act. The most effective online reviews often use a reasonable tone and explain the problem clearly, according to the FTC.
The Star’s Kevin Hardy and Luke Nozicka contributed reporting.
