Don’t Get Ripped off by Appliance Repair Scams
July 27, 2015
Learn how to spot the signs of a scam, and what to do if you fall victim to a dishonest appliance repair service.
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When appliances fail, most homeowners hope for a simple repair, since replacing a dishwasher, stove or refrigerator can cost anywhere from $500 to $2,000.
Hiring a professional appliance repair company seems to offer the best of both worlds: a cheaper price than replacement and a stove or fridge with an extended lifespan. Unfortunately, too many repair companies aren't on the level when it comes to fixing your appliances. Here are some common scams, and how to unplug them before they shock your wallet.
The "cheeky check" scam
Never hand over money before work is completed.
Sandra Guile, a public relations specialist with the BBB, warns that one potential sign of a scam is a repair technician who asks to be paid upfront — particularly if he or she asks for a check payable to a person instead of a business.
“The estimate, the deposit to repair the appliance and the repairman disappear without ever starting or even completing the repair,” Guile says.
Sometimes, the scammer will ask you to pay upfront because the part he or she needs to fix your appliance is "hard to get," a "specialty item" or because the manufacturer "has them on back order." Whatever the excuse, this scammer wants you to pay right away so they can quickly get the necessary part. The problem? They never come back — or if they do, it's only for another check.
Many companies charge a call-out fee, often equating to a full hour or two of labor, but some will roll this cost into your final bill. Asking for immediate call-out payment is fine since the contractor has performed a service, but all parts should be supplied before a check ever leaves your hand.
The "breaker-breaker" scam
This one happens when you leave a repair person alone in your home. It's easy to do; they show up, seem kind and professional, and while they're looking at your dishwasher or garage door, you suddenly get a phone call or remember the kettle you left boiling.
When you return, the repair tech sadly points out major damage they found — anything from a broken dishwasher hose to a garage sensor completely out of alignment. The catch? The repair person is the one who caused the damage in the first place.
Protect yourself — and your appliance — by always staying with the appliance repair technician, both when they are checking out the problem and while they are working. If you're asked to leave, ask why. Unless the repair tech can articulate a legitimate safety concern, stay right where you are.
Lying about licenses
Regulations vary from place to place, so before you hire a repair service, check your state electrical regulations to see what license, if any, is required for appliance repair companies.
In Washington, for example, contractors and electricians must be licensed by the Department of Labor and Industries.
"A big red flag is if they say there's no license required," says Carl Bryant, owner of Appliance Service Station in Seattle. "Very few states require [as much licensing] as Washington state does," he adds, but some repair services will still try to pull the wool over customers' eyes.
Some scammers will also falsely claim to be certified to repair certain manufacturers’ appliances.
"Lots of people will say 'factory-authorized service,'" a term that really means nothing, Bryant says.
"Your safest bet is to talk to the manufacturer — they're going to be able to tell you who's authorized," he says. If you aren't sure who's qualified to service your specific appliance or are worried about falling victim to a scam, you can contact the manufacturer or your appliance dealer for a list of reputable repair services.
The "total failure" scam
In this scam, your appliance is actually damaged before the repair person arrives. When he or she takes a look, however, it's bad news. Really bad news.
What seemed like a broken heating element in your refrigerator's freezer section is in fact a blown circuit board, or completely ruined heating element. The cost, you're told, will be double or triple what you thought. You pay, the appliance gets fixed and it seems like you've gotten a good deal.
So what happened? In some cases, repair techs will try to pass off a simple repair as something more complicated. For example, if the wire connection for your freezer heating element is exposed, replacing and waterproofing the connection should cost less than $10 in parts, plus labor.
The "total failure" repairman sees this simple problem right away, but tells you the issue is much more complicated. You pay for a new circuit board and heating element, which he or she installs — along with performing the simple fix — and everything works again. But you could have paid far less.
Before you hire a repair service, the BBB recommends getting estimates from at least three companies.
Bryant also recommends doing your research before hiring by checking out reviews on Angie's List and making sure the company is in good standing with the BBB.
If you do get scammed...
If you do have a run-in with a scam repairman, the BBB's advice is to contact your local police, then report the scam to the Better Business Bureau using the online Scam Tracker.
In many cases, you won't be able to recoup any money you've lost, but reporting the scam can help make others aware of unscrupulous repair services.
Editor's note: This is an updated version of an article that was originally posted on Dec. 4, 2013.
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