Tennessee Department of Commerce & Insurance issues tips to avoid contracting scams, price gouging

JACKSON, Tenn. — In the wake of the recent storm damage that damaged many homes throughout our viewing area, the Tennessee Department of Commerce and Insurance has issued a few guidelines to help those in need of structural repairs to their property find a legitimate contractor and avoid scams.

One of the most important tips, according to the TDCI, is to get a written contract that includes the company’s name, address and telephone number. They also encourage potential customers to ensure that the contractor is insured to cover workers’ compensation, damage and general liability.. A contractor’s license is required whenever the total cost of the project is $25,000 or more.

As well as encouraging people to get at least three bids and check a contractor’s reference, the press release also encourages customers not to pay more than one-third down.

The TDCI says to avoid contractors who offer services for a short time only, which makes it harder to consumers to research the contractor, as well as unmarked vehicles, contractors who refuse to set out a contract in writing or who require more than half of the cost upfront.

The TDCI also looks into allegations of price gouging, or unreasonably raising prices or unreasonably restricting supplies of essential goods, commodities or services in direct response to a crime, act of terrorism, war, or natural disaster. State price-gouging laws cover essential goods such as gasoline, food, and lodging.

However, the TDCI reminds citizens to remember that higher prices due to disaster do not automatically mean illegal price gouging. Higher prices may be based upon increases in costs to the business.

If you would like to file a complaint with the TDCI, please go to their website at www.tn.gov/commerce or contact them via e-mail at consumer.affairs@tn.gov .

To verify that a contractor is properly licensed, visit http://verify.tn.gov