PROTECTING YOURSELF FROM CONTRACTOR FRAUD
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Your excitement about the remodeling process may be understandably tempered when you hear stories about unscrupulous contractors who accepted large down payments and then skipped town, new roofs that leak during a heavy downpour, and jobs begun but never completed. It's enough to make anybody wary.

But you can protect yourself by watching out for these warning signs:

• The contractor solicits business door-to-door. This sales approach is often accompanied by high pressure sales tactics, intimidation, and threats.

• You can't verify the remodeler's name, address, telephone number, or credentials.

• The contractor claims to be endorsed by the Federal Housing Administration for the Title I home improvement loan program. More information on this type of deceptive advertising is available from the Department of Housing and Urban Development's web site.

• The contractor is not willing to offer references or the references provided were not happy with the contractor's work.

• You are asked to pay for the entire job in advance.

• The contractor will accept payment only in cash.

If you do sign a contract and then have second thoughts, remember that the Federal Trade Commission's "Cooling Off Rule"  may apply if the contract was signed somewhere other than the contractor's place of business (in your home, for example). Under this law, you have up to 72 hours to cancel the agreement.