| Having recently testified as the door hardware, lock | | | | In the State of California, where these calls originated |
| and security expert witness on a very serious elder | | | | and these incidents took place, the law states that |
| abuse case involving the rape of a 93 year old | | | | every home improvement contract must contain a |
| resident of a retirement home, I am intimately aware | | | | three day right of rescission clause. It is unlawful for |
| of the potential for physical violence and neglect | | | | any contractor to take any deposit in excess of 10% |
| aimed directly at senior citizens. The following is | | | | or $1,000 (whichever is greater), for securing a |
| about a completely different kind of abuse involving | | | | contracted project. The homeowner has a right to |
| our senior population. | | | | cancel the contract within the 3 day period without |
| During the past couple of years, with the downturn in | | | | any monetary penalty and any further recourse. All |
| the economy, and the significant slowdown in the | | | | contractors must specifically disclose all labor and |
| construction trades, I have been contacted to | | | | materials required for the project contract and |
| evaluate and consult on several significant cases and | | | | provide a homeowner with materials and labor lien |
| many issues relating to contractor misconduct and | | | | releases at the completion of the project prior to |
| construction fraud. It has become apparent that | | | | receipt of payment for that project. |
| dishonest practices have begun to dominate the | | | | Most homeowners have a sense of anxiety over any |
| businesses of many low end contractors and home | | | | home renovation project. I have been retained as an |
| improvement companies. Seniors seem to be one of | | | | expert witness for cases where young, well |
| the prime targets for construction scams. | | | | educated professionals such as doctors and |
| I was recently contacted by an old acquaintance | | | | attorneys have been scammed by contractors. |
| seeking my advice as to the validity of charges | | | | There is a sense of helplessness that homeowners |
| proposed to his elderly mother regarding an HVAC | | | | have, and they want to trust someone, anyone to |
| (heating ventilation and air conditioning) system repair. | | | | realize their vision. |
| It seems that during a recent heat spell, her almost | | | | The difference in these elder cases is a sense of |
| brand new air conditioning system failed to | | | | urgency that they must act upon. They are |
| adequately cool her home. She had hired a contractor | | | | sometimes lonely, vulnerable and looking for |
| to install a completely new system less than 18 | | | | something to entertain them. They need an |
| months ago. The system came with a two year all | | | | immediate sense of relief from their perceived |
| inclusive labor and materials warranty, and a five year | | | | problems. A friendly con man contractor is just the |
| materials only warranty. So, she called the contractor | | | | sort of companionship that they are looking for. A |
| that installed the new system. When the service | | | | convincing salesman spending a few minutes or hours |
| repairman came to her home, he told his mother that | | | | with them entices their need for belonging to |
| the warranty did not include the materials for the | | | | something. The graphic promises and descriptions of |
| multiple problems he found. He told her that he | | | | how the project will unfold draws them in, and ripens |
| needed $100.00 cash for the purchase of materials | | | | them up for the quick score. |
| and that the repair necessary would cost her | | | | In the first example, above, the homeowner had a |
| approximately $2,500.00. She gave the repairman the | | | | written contract furnished to her at the time of the |
| $100.00 in cash, and wrote a check for $2,500 to the | | | | completed HVAC installation indicating that all labor |
| service repairman and then called her son immediately | | | | and materials were under warranty for the first two |
| to ask his advice. Her son called me... | | | | years after the installation of her system. As the |
| Another popular service these days is to buy a | | | | system failed only 18 months after the installation, all |
| "blanket" home insurance policy that is supposed to | | | | repairs and materials needed for those repairs were |
| cover all repairs needed to your house from top to | | | | the sole responsibility of the installation contractor, |
| bottom as long as you pay a small deductible fee at | | | | not the homeowner. The serviceman had absolutely |
| the time of the service call. For a pre determined | | | | no business asking the homeowner for any fees |
| price, monthly installment payments are sent to a | | | | associated with this service repair, as per her |
| central location. For example, whenever you need an | | | | contract. And, requesting a $100.00 cash prepayment |
| appliance serviced, have a leaky faucet or need | | | | for materials was completely unacceptable and |
| major rework to your roof, all appropriate service | | | | unprofessional. Upon my examination of the original |
| contractors are supposed to be dispatched for the | | | | invoice and work contract for the new HVAC |
| small deductible, as per the master policy plan. | | | | system, I personally contacted the installing |
| Apparently, several geriatric magazines and group | | | | contractor. He gave me a ridiculous list of reasons |
| plans are advertising and endorsing the benefits of | | | | why the system had malfunctioned, and even tried |
| purchasing this type of policy for elder homeowners. | | | | to put the blame on the elderly homeowner. After |
| I was contacted by an elderly gentleman that told | | | | our discussion, the contractor was convinced that he |
| me that he had recently needed his attic ventilation | | | | was in violation of his agreement and he agreed to |
| fan serviced. He was happy because he had just | | | | return all money to the homeowner, and make all |
| purchased a blanket policy for repairs in his home. He | | | | needed repairs. As a gesture of good will, he |
| said that the fan had been squealing and was driving | | | | extended the labor warranty for an additional 6 |
| him crazy. When he contacted his insurance plan, | | | | months. |
| they sent a local electrician to see what the problem | | | | In the second example, after being kept on hold for |
| was. The electrician climbed into his attic and instantly | | | | 45 minutes and transferred from one person to the |
| made his assessment. The electrician came down | | | | next, I spoke to the home warranty company. They |
| from the attic, digital camera in hand and told the | | | | attempted to claim that they had no responsibility to |
| gentleman that he had major problems with the fan | | | | indemnify the homeowner for defective |
| motor unit. It needed to be completely replaced. The | | | | workmanship or inappropriate behavior of their |
| electrician had taken a picture showing the | | | | referred contractors. I was read the same lack of |
| homeowner that there was some problem with the | | | | responsibility statement that the son of the owner |
| structure of the attic, and he would have to remove | | | | was given. In the State of California, the blanket |
| a structural beam in order to gain access to the fan | | | | insurance company still retains responsibility for any |
| motor. He told the man that it would cost an | | | | contracted services, even if they are out of state. If |
| additional $250 cash to do work to the attic | | | | you sell contracts in California, you must follow the |
| obstruction and he would also have to pay the | | | | laws of the State of California. So, the claim that |
| deductible for him to get started. The owner thought | | | | they were out of state, but were doing business |
| that was the only way he could get the fan serviced | | | | within California without responsibility was invalid. I |
| and gave the electrician the requested cash. The | | | | also had a long and detailed discussion with the |
| electrician would not take a check, credit card or | | | | electrician that created this problem, and discovered |
| invoice the homeowner for this work and wanted | | | | that he was in fact unlicensed, uninsured and using |
| immediate payment prior to any work being | | | | the license of some other contractor without the |
| performed. A few days later, the owners son was in | | | | other contractors knowledge. While all funds were |
| the backyard, and noticed that the stucco around | | | | returned to the owner of the house, corrective |
| the fan location had been broken, the fan was no | | | | actions and legal issues are still pending through the |
| longer in the proper place and debris was dangling | | | | State Contractors Board against the electrician that |
| from the side of the house. The son asked his elderly | | | | was unlicensed. The reality of whether or not the fan |
| father what had happened to his fan, and the | | | | motor needed replacement is questionable. The fan |
| previous story was told to his son. The son, being | | | | company warrants that particular product for ten |
| concerned, contacted the blanket insurance company | | | | years and offers free replacement motors that easily |
| and was told the following by their customer service | | | | connect into the existing frame. The complete lack of |
| representative and supervisor: All of our contractors | | | | knowledge and experience on the part of the bogus |
| referred through this policy are licensed and insured | | | | electrical contractor created significant damages to |
| independently from our agency. They are individually | | | | the home. It was obvious that the contractor was |
| responsible for any and all damages created on your | | | | looking out for his best interests and saw the elderly |
| property, and we as the insurance providers make | | | | man as an easy target for some quick cash. Due to |
| no warranty or assurance that the quality of the | | | | the damage created by the incompetent electrician, |
| work performed under this policy is appropriate or | | | | the homeowner had to hire additional tradesmen to |
| done correctly. We are an out of state business and | | | | repair the house. |
| hold policies nationally, and all of our referred | | | | In the third example, the elderly homeowner has lost |
| contractors have been checked out and verified as | | | | her money. No trace of the roofing contractor has |
| licensed contractors in the state where they are | | | | been found, however, reports of fraud were made |
| performing work. We assume absolutely no liability | | | | to the police department and investigation is pending. |
| for their actions and are uninvolved in all transactions | | | | Due to the fact that the flyers were sent via mail, it |
| other than to put you in touch with an appropriate | | | | may become a federal fraud problem for the roofing |
| service contractor. After hearing this, the son urged | | | | contractor. |
| his father to seek my services. | | | | Today, even more so than in the past, older people |
| An older woman found a flyer included in a mailing | | | | appear easy targets to unscrupulous contractors and |
| packet advertising that a roofing contractor was | | | | salesmen. They are quick to react with their wallets |
| having a special re-roof promotion in her area. All she | | | | and easily satisfied even though the work may not |
| had to do was call the phone number on the flyer, | | | | be as promised. However, they are generally slow to |
| and a salesman would visit her home, take all needed | | | | realize that they have been taken advantage of. |
| measurements and bring samples for her to choose | | | | They appear to be afraid that their problems will not |
| her new roof material. The work would be completed | | | | be solved unless they make an attempt to pay for |
| in two days from signing of the work agreement. | | | | services in advance or prior to any formalization of |
| The woman in need of a new roof, made the phone | | | | contractual obligation. In many circumstances, perhaps |
| call, a salesman came to her home, she picked the | | | | relating to pride or shame, they will not report their |
| roof material that she wanted for her home, and | | | | problems and many are "ripped off" as a result of |
| gave the man the requested 50% deposit. The | | | | their hesitance to report what has happened to |
| salesman arranged for work to start in 10 days | | | | them. From my experience, it appears that many of |
| instead of immediately, as he claimed that all of his | | | | the home warranty companies are incompetent to |
| crews were busy working in her area until then. 20 | | | | assess the quality of the referred contractors that |
| days passed - the roofer never came to install her | | | | are sent to do home repairs. Their lack of knowledge |
| roof, the check cleared her bank, and nobody was | | | | about the referral network contractors should act as |
| answering the phone number on the flyer. I am her | | | | a "red flag" to anyone seeking these types of |
| next call for help... | | | | services. Some homeowners seek "peace of mind" |
| These are just 3 examples of the many calls that I | | | | from these home warranty policies, however, in |
| have received during the past couple of months. It | | | | most cases are let down by the responses that are |
| appears in each case that a specific targeted market | | | | given when actual warranty claims arise. Many home |
| was chosen. In these cases and many more, the | | | | warranty companies are happy to take your annual |
| average age of the homeowner has been 80 + | | | | premium, but do little to help you when you have a |
| years old. | | | | claim. |