Avoiding contractor, moving, and other service scams
Search the company or individual’s name and see what comes up. Read review from other customers and request a list of references they have worked for before. Past customers are the best source of information on the quality of work.
Ask for recommendations. If a friend, colleague, or family member has recently had a good experience with a company, that is worth much more than a review from a stranger online.
Get multiple estimates. If one is far lower than the rest, that is a big red flag. Remember, if it seems to be too good to be true, it probably is!
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When hiring a moving company, make sure you get a full written contract that includes the estimate, exactly what work you need to have done, and specifies that the price cannot be more than 10% more than the original quote. Also discuss insurance; even good movers may damage something. What sets the good ones apart is taking responsibility for damages incurred and having or helping you set up the appropriate insurance.
Be wary of up front deposits. Some services require deposits (for instance, renovation services that have to buy raw materials), but never give one without first drawing up a contract and checking their references. If possible, front any initial costs for materials yourself so you don’t have to give out a deposit. A post-dated cheque or a PayPal payment are good alternatives to cash as you have recourse if the services paid for do not materialize.
Specifically ask about other costs not mentioned in the quote, and read the fine print on a contract.
Stay away from companies with out any history. Non reputable companies will frequently change their name to avoid the bad reputation they have gained from past work. If you can’t find any information about the past jobs of the company, keep looking for a company that has a reputation they are invested in protecting. Look for markers of an established business – for instance, printed business cards, a website, an address listed. If looking for a moving service, the presence vans advertising the company name and contact information are also a good sign, as it shows that the owners have invested in their name and are thus more likely to want to protect their reputation.
Be skeptical; if it seems too good to be true, chances are, it is. Want to learn more about moving scams? The Financial Services Commission of Ontario is running a chat on how to identify and avoid moving scams today, Thursday August 14th at 1 PM EST. Follow the hashtag #FraudChat on Twitter and the FSCO Twitter account