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Advice on Hiring Contractors for Home Improvements and Remodeling

By the BETTER BUSINESS BUREAU

With the National Association of Realtors' reporting current pending home sales down 21.4 percent from the first quarter of 2007, and Standard & Poor’s citing the steepest decline in home values in the 20-year history of its housing index, many homeowners are now choosing to remodel their current home rather than selling in an effort to hold home values in the turbulent U.S. housing market. To execute the strategy successfully, most projects require professional help and Better Business Bureau (BBB) is offering advice and guidance on finding trustworthy contractors who can help make the strategy pay off.

According to the Home Improvement Research Institute (HIRI), homeowners spent $306.7 billion on remodeling projects in 2007. Despite substantial declines in other U.S. housing market indicators, HIRI expects only a modest decline in home improvement spending in 2008, and estimates the amount of money spent by homeowners will exceed $302 billion.

Many homeowners feel that finding a trustworthy contractor is a difficult task. According to the recently released BBB/Gallup Trust in Business Survey, 73 percent of respondents indicated that they didn’t have a great deal or a lot of trust in contractors.

“Homeowners often don’t know where to begin looking for reliable help for home improvement projects, but finding a trustworthy contractor doesn’t have to be a difficult task,” said Steve Cox, BBB spokesperson. “While asking friends and family for references is advised, homeowners can start their research easily and quickly online with free BBB Reliability ReportsTM that provide an unbiased assessment on many types of contractors operating in their community.”

For homeowners looking to make renovations, BBB offers the following advice on how to choose a contractor they can trust:

Start with trust

Most homeowners have heard of, and in some cases experienced, shady contractors that ask for payment up front, perform shoddy work, and then refuse refunds or redress of issues. BBB encourages homeowners to do their homework – starting online at www.bbb.org where they can search BBB’s online directory for BBB-accredited contractors and remodeling businesses in their area.

Get references

BBB recommends homeowners ask all contractors for local references and then take the next step by finding out if those customers were satisfied with the contractor’s work. If possible, homeowners should visit and inspect completed projects.

Ask the experts

BBB advises that homeowners find out if a contractor is a member of a professional association which has standards or a code of ethics. All BBB Accredited Businesses have agreed to uphold BBB standards for ethics in the marketplace. Homeowners can also check with BBB to learn how long a contractor has been in business and if the firm has been responsive to any complaints filed with BBB.

Compare costs

Homeowners should solicit at least three bids from prospective contractors based upon the same building specifications, materials, labor and time needed to complete the project. Homeowners need to discuss bids in detail with each contractor, making certain they understand the reasons for any variations in the prices and not automatically making a decision based on lowest price. Cost differences may include issues such as quality of materials, craftsmanship and subcontracting for specialized labor.

Check on insurance

BBB reminds homeowners to ask contractors if the company is insured against claims covering worker’s compensation, property damage and personal liability in case of accidents. Further, BBB advises people to then call to verify the contractor’s insurance coverage after obtaining the name of the carrier and agency.

Are they bonded/licensed?

Contractors must typically meet licensing and bonding requirements set by the state, county or city housing authority. Homeowners should confirm the contractor meets all requirements and can legally operate in the state.

Given the tough housing market, it’s important that homeowners make smart, informed decision affecting their most valuable investment – their homes. For advice they can trust on finding reliable professionals to help with home improvement and remodeling projects, homeowners can turn to www.bbb.org.

Job Seekers Complain to BBB on National Commercial Cleaning

The BBB warns job seekers that National Commercial Cleaning, 3030 LBJ Frwy., Suite 700, Dallas, claims to offer work cleaning federal buildings, but charges applicants for a background check and then discloses that the work is on a contractor basis. Before opening in Dallas, the business operated in Chicago and Houston, where there are similar reports.

Applicants are complaining to BBB that the Help Wanted ads for National Commercial Cleaning are misleading; calls to the company aren’t returned; and the background check is minimal.

National Commercial Cleaning runs Help Wanted ads in Texas offering $17 an hour plus benefits for cleaning federal buildings. According to complaints to BBB, the company charges $64.50 for a background check and then tells applicants that the work is on a contract basis. In the complaints, job applicants are requesting refunds.

A man complained: “I was promised a job as a floor technician. They have an ad for the job. They took my application and told me that I needed to bring in $64.50 for a background check. They told me that I was to begin work the following week. They mailed me a bogus background check that they had blacked out where it came from. They also offered me a contract but that wasn’t what they told me when I applied for the job.” This complaint is pending.

Since BBB opened file this month on National Commercial Cleaning, the company has been the subject of three complaints alleging that the Help Wanted ads are misleading. One complaint is closed as unresolved, and two complaints are pending.

Complaints allege that when job applicants went to the company’s location, they were asked to pay for a background check with a money order to First American Scan.

Complaints also allege that job applicants can’t get back in touch with the business. One complaint states, “They tell you that you will receive a letter within 48-72 hours stating if you passed the background test if you’re hired … Also, when you try to call and contact them they don’t answer the phone.” This complaint is pending.

One complaint says the background check “was a public record background check downloaded from a Web site. He used a black marker to cross out the Web site … I could have printed that out myself.” This complaint says the letter from the company states the applicant “needed to get DBA documents, property insurance and bonding documents” to become a contractor. “He told us that this was a detail cleaning position and not a contractor position,” the complaint says. This complaint is closed as unresolved.

On the company’s Web site, nationcommericalcleaning.com, some of the links aren’t active at all, and some go to a Yahoo page.

BBB in Chicago reports that National Commercial Cleaning rented a room for 3 days in September, 2007, where the business conducted employment interviews. However, the business is no longer at the address. According to customer reports in Chicago, National Commercial Cleaning charged advance fees from prospective employees for alleged background checks. The business has been the subject of one customer complaint, which remains unanswered. The business operated for 3 days from an address which belongs to a college campus. The business is no longer at that address, and the business has no affiliation with the college.

BBB in Houston reports that according to customer reports, National Commercial Cleaning charged advance fees from prospective employees for alleged background checks. Once applicants have completed the background check they are asked to obtain a DBA and bonding documents. Customers report that when a refund is requested the company states that a refund will take up to three months. The business has been the subject of one customer complaint, which remains unanswered.

For job seekers, BBB advises caution with any offer for employment where the applicant is asked to pay up front. This could be a sign that the offer is for an independent contractor, not an employee. BBB does not handle employee complaints, however, BBB does take complaints on misleading advertising, including Help Wanted advertising. To check on a business or to file a complaint, start at www.bbb.org.

Top Five Ways to Prevent ID Theft Online

The good news is that ID theft is on the decline. The bad news is that ID theft still affected 8.1 million Americans last year, according to Javelin Strategy and Research – down 3.6 percent from 8.4 million in the previous year’s study. The average amount lost per individual as a result of ID theft last year was about $5,500, for a total of $45 billion. Despite the decline in reported ID theft, Better Business Bureau (BBB) warns that thieves and hackers still lurk online and is offering advice consumer can use to protect their personal and financial information.

ID theft prevention should always be on an individual’s mind when they are online, When it comes to protecting your identity, an ounce of prevention is worth far more than the amount of money, energy, and agony that goes into getting your life back to normal after your financial and personal information has been stolen.

BBB recommends consumers take the following fives steps to prevent ID theft whenever they are online:

1. Don’t fall for a phishing e-mail.

Phishing—using e-mail or phone calls to pose as a trustworthy organization in order to coerce sensitive information from victims—is on the rise. According to a survey for Gartner, Inc., 3.6 million U.S. adults lost money in phishing attacks in the 12 months ending in August 2007, as compared with the 2.3 million who did so the year before. The amount of money lost totaled $3.2 billion.

Phishing e-mails can look legitimate with graphics and official logos of banks, government agencies, or credit card companies. The e-mails usually include hyperlinks that direct the victim to a Web site designed to install viruses and malware or solicit bank account or Social Security numbers.

In order to prevent ID theft through phishing e-mails, computer users should completely delete unsolicited e-mails from banks, credit unions, investment firms and government agencies with which they do not already have an established relationship. If the recipient does have an existing relationship with the supposed originator of the e-mail, BBB recommends calling the organization to confirm whether or not the e-mail is legitimate before taking any further action. The IRS and other government agencies do not use e-mail to contact consumers about any issues or problems that require action on the part of the recipient, so e-mails purporting to be from government agencies should be deleted immediately.

2. Create strong passwords and protect them.

Developing a habit of regularly changing passwords makes it much more difficult for ID thieves to steal personal information. Some passwords, however, are stronger than others. Attributes of a secure password include a combination of numbers, capitalized letters and even symbols. Consumers should never use sensitive information for a password such as their Social Security number, mother’s maiden name or birthday.

3. Be safe and secure when on the go.

Computer users on the go should be wary of entering passwords or sensitive information into a computer that isn’t theirs, such as at an Internet café, library, computer lab or airport kiosk. Hackers can actually record their target’s keystrokes to learn passwords and other information.

Wi-Fi networks, either on the road or in the consumer’s own house, present even more opportunities for ID thieves. The easiest way to protect a Wi-Fi network at home is to not broadcast the Service Set Identifier (more information on this topic is available at www.us.bbb.org). A safe rule of thumb is to avoid exchanging sensitive information through the Internet when using a public Wi-Fi connection and to simply wait until a trusted network can be used.

4. Guard personal computers with anti-virus, anti-spyware, and firewall protection.

Opinions vary, but the amount of time it takes for an unprotected personal computer to become infected with a virus or malware can range from four to thirty-four minutes. That’s why a computer must have good anti-virus software, as well as anti-spyware and firewall protection. Consumers can purchase protective software, but there are also a number of reputable, free programs available for download online. BBB advises consumers to do their research into a company beforehand to make sure it provides legitimate, reliable software. Also, many operating systems already provide firewall protection so users should always make sure this protection is enabled.

After acquiring security software, users must keep the programs updated. Operating systems also require patches and other additional updates that computer users need to install in order to maintain security.

5. Only transfer information over a secure server.

When it comes to giving out personal information online, consumers should only do so on a secure server. On a secure server, the information is encrypted as it is being transmitted; that way, others can’t read it if they should intercept it.

BBB advises consumers to make sure they are on a secure server by checking the URL of the page when asked to give any personal information. An unsecured URL will look like this: http://www.###.com. A secure server will have an “s” either in front of or following the “http”, and it will look like this: https://www.###.com or shttp://www.###.com.

For more trustworthy information on preventing ID theft, as well as BBB advice on what to do if your identity is stolen, go to www.bbb.org.

Spring-Cleaning? Prevent ID Theft by Following BBB Advice on What to Keep and What to Shred

Spring is here and now is a good time to rid the house of paperwork that has accumulated over the past year. Better Business Bureau (BBB) warns that, when it comes to reviewing and cleaning out financial records, failing to shred sensitive documents can put everyone at risk of ID theft.

Last year alone 8.1 million Americans became victims of ID theft resulting in the loss of $45 billion according to a 2008 report from Javelin Strategy and Research. The report notes that, contrary to popular belief, only 12 percent of ID theft is perpetrated online. The vast majority of ID theft occurs when the thief has direct contact with the victim’s personal information such as through a stolen or lost wallet, or by rifling through the victim’s mailbox or trash.

When people think of ID theft they almost immediately focus on hackers and online security. But the truth is most ID theft happens when people have failed to secure or properly destroy important financial information including paper documents, IDs, and credit cards.

Properly destroying sensitive personal and financial documents is a key step in ID theft prevention and BBB offers the following guide on when to shred the following documents:

Canceled checks

Canceled checks with no long-term significance for tax or other purposes can be destroyed after one year. However, canceled checks that support tax returns, such as charitable contributions or tax payments, should be held for at least seven years – long enough to cover the six-year tax assessment period. BBB advises that consumers indefinitely keep any canceled checks and related receipts or documents for a home purchase or sale, renovations or other improvements to owned property, and non-deductible contributions to an Individual Retirement Account.

Deposit, ATM, credit card and debit card receipts

Consumers should save credit, debit, and ATM receipts until the transaction appears on their statement and they have verified that the information is accurate.

Credit card and bank account statements

Credit card and bank account statements with no tax or other long-term significance can be discarded after a year; remaining statements should be kept for up to seven years. If a consumer receives a detailed annual statement, they should keep it and shred the corresponding monthly statements.

Credit card contracts and other loan agreements

Credit card contracts and loan agreements should be kept for as long as the account is active in case the consumer has a dispute with their lender over the terms of the contract.

Documentation of a purchase or sale of stocks, bonds and other investments

Investors should retain documentation of a purchase or sale for as long as they own the investment and then seven years beyond that time. Monthly retirement and monthly investment account statements can be shredded annually after being reconciled with the year-end statement.

Paycheck Stubs

Paycheck stubs can be shredded yearly after the income has been reconciled with a W-2 or other tax forms.

Utility or monthly bills

Monthly bills should be shredded the year after being received by the consumer. This way, if it’s a power bill, for example, consumers can compare this month’s bill to last year’s bill for any major changes before shredding it.

Shred-it Checklist - Don’t just toss it, shred it!

* Documents that include Social Security numbers, birthdates, PIN numbers or passwords

* Banking documents and other financial information

* Leases, contracts or letters that include signatures

* Pre-approved credit card applications

* Medical or dental bills

* Travel itineraries

* Used airline tickets

For more trustworthy advice from BBB on preventing ID theft and for guidance on what to do if your identity is stolen, go to www.bbb.org.

BBB Small Business Advice on Dealing with a Data Breach

The Identity Theft Resource Center lists more than 79 million records reported compromised in the United States in 2007—almost a fourfold increase from the nearly 20 million records reported compromised in 2006. The cause of the data breaches ranged in sophistication from the expert work of computer hackers to the negligent handling of sensitive information on the part of company employees.

So far 2008 looks a lot like 2007. There have already been major data breaches at some very recognizable companies such as MTV and T. Rowe Price. However, just because a business isn’t part of the Fortune 500 doesn’t mean it is safe from the risk of a security breach, and Better Business Bureau (BBB) wants small businesses to be prepared to handle a breach if the business’ or customers’ financial information is stolen.

While breaches at major corporations make the news, many small businesses also find themselves victims of security breaches. Sensitive financial information on both a business and its customers can be compromised by poor handling of computer or paper data or stolen by thieves and hackers, and small business owners must be prepared to respond quickly to lessen the damage done.

Regardless of how a data breach occurs, responding quickly can help a business regain trust and retain its customer base. BBB offers the following steps and guidance for small business owners in the event they experience a security breach:

Notify Customers

Currently, 39 states including Texas, have laws that require customer notification in the event personal data is lost, stolen, or inadvertently disclosed, and these laws may expand to a national level soon. Many states require companies to notify their customers of any data breach. Other states require notification when harm to potential victims is likely. Even if the law does not require it, businesses should strongly consider the advantages of giving notice to customers whose information was compromised.

If a business chooses to inform customers about a security breach, it should:

* Describe the nature of the incident;

* Inform them what has been done to address the problem; and

* Advise them on what the company will do in the future to further reduce the chance of future security breaches.

Notify Law Enforcement and Other Authorities

If a breach occurs, it is important that the business alert appropriate law enforcement officials immediately so they can investigate the incident. This could include local police, state authorities, or even the FBI. BBB recommends that companies check with their legal advisors for counsel now, so that in the event a breach does happen, the business is prepared to contact the appropriate local law enforcement agency quickly.

BBB also recommends alerting the three national consumer reporting agencies: Equifax (www.equifax.com, TransUnion (www.transunion.com) and Experian (www.experian.com).

Businesses should also alert the bank or company hired to process payment cards. It’s important that the compromised accounts are watched or closed to prevent fraud from occurring on them. Unfortunately, businesses could be liable for any resulting fraud, so quick notification to payment card companies can help.

Customer Support

If a breach occurs, BBB advises that businesses:

* Encourage customers to monitor their credit reports for signs of identity theft. If a business can afford the expense, it should consider paying for a credit monitoring service for affected customers for a designated period of time (generally 6-12 months).

* Recommend that any customer experiencing or suspecting identity theft alerts the business, files a police report, and notifies the three national consumer reporting agencies.

For more BBB advice on ID theft prevention and for trustworthy advice on many other issues affecting small businesses, go to www.bbb.org.

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