Valley News – State launches consumer protection newsletter

In late June, the Attorney General’s Office announced it had charged a contractor in Hillsborough County Superior Court with stealing $27,000 from two clients and convicted a Warner Bros. man of falsifying asbestos lab results and posing as an asbestos-removal contractor.

Two months earlier, the agency announced it was suing an Epping construction company for allegedly taking $500,000 from clients, doing little or no work on their projects and using the money for other expenses.

This week, the Attorney General’s Office refocused its attention on contractors, releasing a guide to help you avoid shady companies.

In its first NH Consumer Insight newsletter, the Bureau of Consumer Protection and Antitrust outlines the risks and provides tips on how to avoid them when it comes to paying, dealing with substandard work and planning for unexpected changes.

“Outreach and education are among the most effective tools my office uses to prevent harm to consumers,” Attorney General John Formella said in a statement.

Here’s what to avoid – and what to do – when hiring a contractor.

■Do your research and ask for a detailed list of expenses.

■Contractors are not required to be licensed in New Hampshire, so the Consumer Financial Protection Bureau recommends asking the contractor for references and searching online for reviews. Call the office at 603-271-3641 to see if any complaints have been filed.

■Ask for a detailed contract and ask potential contractors how they will use your deposit.

■Make sure your contractor is insured. If a contractor fails to do the job, does substandard work, or damages your property, you can sue their insurance company—if they have insurance.

■The Consumer Financial Protection Bureau warns against hiring anyone who does not provide proof of an active insurance policy that protects against losses resulting from errors and omissions. Even then, call the insurance company to verify coverage before hiring them.

■Prepare for the unexpected. It is not uncommon for scope changes or the discovery of hidden defects to increase costs. Make sure the contract specifies how changes or delays to the contract will be handled, and require that the contract document all changes.

■Make sure you understand the terms of the agreement. If not, don’t be afraid to ask for clarification or more detailed terms.