Contractor Fraud

HOME CONTRACTOR fraud refers to a range of illegal practices committed by contracting firms in repairs and renovations on residential dwellings and financial arrangements associated with this type of work. According to state consumer protection agencies, it ranks among the most common types of consumer fraud in the United States. The most common illegal acts include unnecessary repairs, misrepresentation, bill padding, defective workmanship and home-improvement loan fraud. Such actions generally fall under conventional legal definitions of property theft and fraud, that is, deliberate and deceitful practices intended to gain financial advantage.

Unscrupulous home contractors target the 26 million homeowners in America who remodel homes each year.

Home contracting fraud has come under increasing scrutiny in recent years due to the substantial economic investment Americans make in home ...