Dodgy tradies: Beware home repair scams

Has anyone knocked on the front door to say your roof needs urgent repairs? Perhaps you have paid a deposit to a tradie for work that was never done. Home repair scams are more common than you think – and they can be very costly.

Rogue tradespeople often target vulnerable homeowners, such as the elderly or less mobile, pressuring them to sign up for repairs that are either not needed or grossly overpriced.

They use fear tactics, such as pretending if the homeowner doesn’t act immediately, the consequences could be devastating. Some have even intimidated homeowners into transferring money for the job on the spot, action that is not only immoral but illegal.

Consumer protection agencies across the country are warning Australians to be on the lookout for dodgy tradies.

Putting the pressure on

Rogue tradespeople can look professional and sound knowledgeable, and may even know what they are doing, but they are not interested in doing the best job for the fairest price. It’s about getting as much money out of you for as little work – if any – as possible.

 

 

One 78-year-old Perth resident was told her house needed rewiring and if she didn’t pay $20,000 to get the job done straight away, she would be left without power. Luckily her daughter was at hand to intervene and the woman was able to get the job done elsewhere for a fraction of the cost.

There have also been disturbing reports of traders approaching homeowners in Perth to say their roof required repairs, pressuring them into agreeing to the work on the spot. In one case, a couple handed over a cheque for more than $18,000; in another, a couple were conned out of more than $2000 only to be left with a mess.

In South Australia, Consumer and Business Services warned consumers to watch out for rogue tradespeople, saying the department was aware “some tradies have recently been charging an excessive amount, exaggerating the need for extra work, pressuring customers to sign a contract on the spot, performing shoddy work or potentially breaching consumer protections”.

The Financial Crimes Squad in Western Australia urged consumers to do reference checks on tradespeople hired off social media after a man was charged with taking deposits without doing any work.

Cashing in on a crisis

Dodgy tradies also pop up in the wake of natural disasters such as cyclones or floods, preying on people’s desperation to get their homes fixed before even more damage is done.

 

 

A shortage of qualified tradespeople and the rising cost of materials have helped send thousands of building companies to the wall over the past few years. It has also made it harder for homeowners to get repairs done under normal circumstances, let alone in a crisis when everyone is scrambling for help.

Homeowners dealing with the aftermath of flooding across parts of NSW earlier this year were warned to be wary of unsolicited offers of repairs.

"It is deeply concerning that some individuals may seek to take advantage of vulnerable residents during this difficult time,” NSW Building Commissioner James Sherrard said. “Before engaging any tradesperson to assess damage on your property, I strongly encourage homeowners and tenants to verify their licence through the Verify NSW website.”

Know your rights

Under Australian Consumer Law, there is a mandatory 10-day cooling-off period for unsolicited approaches, whether the people offering the products or services come to your door or call you. They must provide an agreement that is easy to read and you have 10 business days to change your mind once you have signed it.

The sales agreement must include the full terms and conditions, as well as the total cost (including GST). It must also include the salesperson’s name and contacts, the business’s address, email and ABN or ACN.

During the cooling-off period, no services can be supplied except electricity, gas or emergency repairs. Nor can the supplier take any payment for products or services unless it’s for electricity, gas or emergency repairs. If the person offering the service breaks these conditions, the cooling-off period can be extended.

It is also against the law to engage in unfair business practices, such as:

• • Making false or misleading claims
  • Failing to deliver services or products that have been paid for
  • Pressuring or harassing consumers – this includes making someone feel intimidated, tired or demoralised
  • Engaging in unconscionable conduct, such as targeting vulnerable consumers

 

 

Don’t be pushed around

Most of us are not building experts. It is easy for smooth talkers and pushy salespeople to make us feel like we should take action immediately. But don’t fall for the pressure tactics. Watch for home repair red flags and don’t commit to anything without doing due diligence.

If you suspect the tradesperson knocking on your door is part of an unsolicited home repair scam, tell them you are not interested. If they refuse to leave or try to pressure you into getting work done around your house, call the police.

If you believe you have been the victim of a rogue tradie, report them to your state or territory’s consumer watchdog. Provide as much information as you can at the time, including their name, business name, contact details and vehicle registration, as well as any flyers or paperwork related to the work.

We are also here to take the stress levels down. Make a complaint with us and we will help you handle it.