Paying Upfront:  Home Improvements

Okay, so I’m a nag. But how many times have you been told, "Don’t pay for work until it’s done?" Today’s report illustrates what can happen when that advice is ignored.

I'm Shirley Rooker for the Federal Trade Commission.

The homeowner wanted to install a lawn sprinkling system as well as additional landscaping. He contacted a company that came out, gave him an estimate, and promised to do a great job. Our gullible homeowner signed the contract, paid over $7,000 up front, and waited for the company to complete the work. This was last year - and he is still waiting.

The bad news: the company is no longer answering its phones, and the owner is very elusive. Unfortunately, this case illustrates the pitfalls when work is paid for before it’s completed. The most you should pay up front is a down payment, and that should be done by credit card, so you have charge-back rights if the work isn’t performed.

I'm Shirley Rooker, director of WTOP radio's Call For Action for the Federal Trade Commission.

January 2002