The Update

Don’t Hire a Scammer as a Contractor

Hiring a contractor can be stressful, especially when home improvement scams are on the rise. A bad contractor can cost you thousands of dollars, leave projects unfinished, or even disappear with your money. To ensure you hire a trustworthy professional, follow these key steps to protect yourself.

Verify Licenses and Insurance

Before hiring anyone, check that they are properly licensed and insured. Most states require contractors to have a valid license, which you can verify through your state’s licensing board. Insurance is equally important—without it, you could be liable for accidents or property damage during the project.

Check References and Reviews

A reputable contractor should have a history of satisfied customers. Ask for references and read online reviews on sites like the Better Business Bureau (BBB), Yelp, and Google. Be cautious of contractors with little to no online presence or those who refuse to provide references.

Beware of Red Flags

Scammers often pressure homeowners into quick decisions. Be suspicious of contractors who:

• Demand large upfront payments or only accept cash.
• Offer extremely low estimates that seem too good to be true.
• Refuse to provide a written contract detailing the work, timeline, and costs.

Never Pay in Full Upfront

A trustworthy contractor will structure payments fairly—typically starting with a small deposit and scheduling payments based on project milestones. Paying in full before work begins is a common scam tactic.

By taking these precautions, you can avoid falling victim to a contractor scam and ensure your project is completed successfully. A little research goes a long way in protecting your home and finances.

If You’ve Been Scammed

If you’ve had the misfortune of being duped by an unscrupulous contractor company, you may have difficulty extricating yourself from any contracts or agreements. You can report the scam to the FTC and the BBB, and reach out to local law-enforcement agencies to ask about your best next step.

Don’t get scammed! Follow the tips outlined above when hiring a provider and keep your money safe.

Stay Ahead—Protect Yourself 

Protect yourself from fraud by regularly checking your bank statements, credit bills, and reports for unusual activity. Use strong, unique passwords, avoid sharing personal info with unverified contacts, and stay informed about scams. Your RGCU Debit Card comes with Personal Identity Theft Protection. If your identity is stolen, you could be redeemed up to $5,000 for the cost of recovery.