Contractors Taking Advantage of Elderly Adults

We’ve all heard horror stories about fraud and the elderly. There is no shortage of people looking to take advantage of seniors, and fraudulent contractors are no exception.

Whether you are looking to help your loved ones avoid senior fraud, or you’re looking for advice after being scammed by a contractor — this post will help you navigate contractors taking advantage of elderly relatives and what to do if a contractor steals from you*.

*The information provided in this post does not, and is not intended to, constitute legal advice; all information available in this post is for general informational purposes only.

General Contractor Fraud

Contractor fraud (also known as construction fraud) can cost you thousands and leave your seniors with improperly completed projects and, in some cases, damage to their property. Common examples of construction fraud include material substitutions, fraudulent billing, and collusion between contractors, subcontractors, and suppliers to intentionally drive up costs or cut corners.

Scam contractors are more likely to target older adults to take advantage of their trusting nature, general confusion, or inability to understand misleading contract terms. Elder fraud reports to the FBI’s Internet Crime Complaint Center rose by 14% in 2023, showing that the problem is only becoming more common.

What to do When Scammed by a Contractor

If you believe you or a loved one has been scammed by a contractor, your first step is hiring a local attorney with experience in contractor disputes. They will be able to help you navigate your next steps which may include sending a registered letter, filing a police report detailing the scope of the crime, or requesting arbitration.

Depending on where you live, you may also be able to report the contractor scam to their state licensing board, who will then take action against the contractor. You can also file a complaint with the Better Business Bureau or the Bureau of Consumer Protection for additional assistance.

You may also be able to contact your bank or credit union to see if they can put a fraud alert on the contractor’s account.

Contractor Fraud: Civil or Criminal?

If all else fails, you can file a small claims court suit for damages with the help of your attorney. How much you can sue varies from state to state, so this option may only work for those with smaller claims.

Unfortunately, this will cost additional fees to recoup your losses, and some contracts may require you to seek arbitration before filing suit. An experienced attorney will be able to help you navigate whether or not a small claims suit is right for you.

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How to Avoid Scam Contractors

Of course, the best way to deal with contractor scams is to avoid them in the first place. In this section, we’ve compiled a few tips for you to keep in mind when searching for a contactor.

• Research Your Options: Before hiring a contractor, check their credentials and references. Don’t rely on testimonials from their personal website – look for reviews on third party sites from verified customers.
• Compare Estimates: Get estimates from multiple contractors to ensure you aren’t overpaying.
• No Upfront Payment: Only provide a deposit or payment after work has begun.
• Carefully Review Your Contract: Get all details of the project, including the timeline, payment schedule, and materials to be used in writing ahead of construction. If you have questions, consult a contract attorney to review the terms with you before signing.

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