With spring heralding the season of home renovations, Tennesseans are being urged to stay vigilant against potential home improvement scams. According to the Tennessee Attorney General's Office and the Tennessee Board for Licensing Contractors, unscrupulous contractors are ready to exploit unwary consumers. "Home improvement scams top the list of consumer complaints received by our Division of Consumer Affairs," Tennessee Attorney General Jonathan Skrmetti pointed out on the Tennessee Department of Commerce & Insurance website, emphasizing the importance of verifying a contractor's credentials before committing to any project.
The Board for Licensing Contractors, tightly linked with the TDCI's Regulatory Boards Division, has made it their mission to protect public health and safety. Disciplinary actions in 2024 amounted to a hefty $990,896.25 in civil penalties, stemming from consumer complaints, which numbered 884. TDCI Commissioner Carter Lawrence advised consumers to probe a contractor's background and insurance coverage before hiring. "Before hiring a contractor to conduct work on any home improvement project either large or small, I encourage consumers to first learn Tennessee’s rules governing contractors and ask questions to their contractor about their background, training, and insurance coverage," he stated to the TDCI’s website, in a response to a growing concern over fraudulent practices.
Even as neighborhood platforms like Facebook or Nextdoor provide a space for recommendations, they are not immune to scammers' presences. It's recommended that consumers check a contractor’s license when a project's total cost exceeds $25,000 before entering into negotiations. Tennessee’s website Verify.tn.gov offers a free and detailed database for license verification of professionals across thousands of businesses. Furthermore, the Board for Licensing Contractors at (615) 741-8307 or [email protected] can provide insight into any disciplinary history tied to a prospective contractor. For less extensive projects, the local building codes office can assist in determining if a state or local license is needed.
Adding to the precautionary measures, the Tennessee Secretary of State’s business search website is another resource consumers can use to ensure contractors have formal authorization to operate in Tennessee, or elsewhere. It's also vital to verify that the contractor has appropriate insurance coverage by requesting insurance certificates, to ensure that all potential liabilities are accounted for. Additionally, Tennesseans are counseled to never pay in cash or sign over their insurance check before work is completed, as state law prohibits more than one-third of the total contract price as a down payment. To assist consumers further, the Board’s website lists comprehensive tips on hiring contractors.
Consumers are reminded to look out for certain red flags that may indicate fraudulent contractors: door-to-door sales, high-pressure sales tactics, a demand for upfront full payment, reluctance to pull permits, insistence on cash-only payment, and a refusal to set out terms in writing. "Demand of full payment upfront: Tennessee’s Home Improvement law prohibits contractors from asking for a down payment of more than 1/3 of the total contract. Don’t pay more than one-third down, and do not let the payments get ahead of the work," as mentioned on their website. The vigilant homeowner can thus steer clear from the pitfalls of home improvement projects, ensuring both their peace of mind and the quality of their investment.
