OTTAWA — A new survey report reveals that home renovation scams are on the rise in Canada, and a third of Canadians feel that governments are failing to protect consumers from such fraudsters. In a poll conducted by the prominent survey agency Nanos Research for CTV News, over a third of Canadians expressed dissatisfaction with the government’s stance.
According to the poll, 39.1% of Canadians feel that governments are doing either a “poor” (23.8%) or “very poor” (15.3%) job of protecting homeowners from unethical or fraudulent contractors. Conversely, a mere 5.2% of respondents believe that government mechanisms are performing well or very well in this regard.
Limitations on Police Intervention
The Toronto Police Service’s Financial Crimes unit stated that construction fraud cases are being reported almost daily this year, with around 150 scams officially registered so far.
While defrauded homeowners frequently approach law enforcement, legal constraints often prevent immediate police intervention. The primary challenge for investigators is distinguishing whether the matter is a criminal offense or a civil dispute. Police clarify that a bad contractor who lacks skills is a civil matter, whereas a contractor who takes money with an explicit intent to deceive is a criminal matter. Law enforcement cannot intervene unless criminal intent is clearly proven, which often leaves victims highly frustrated.
How to Avoid Renovation Scams
To prevent falling victim to such frauds, the Canadian Home Builders’ Association (CHBA) suggests that consumers take the following precautions:
- Thoroughly check the references and past history of contractors.
- Secure and compare quotes from multiple agencies.
- Draw up a detailed, itemized contract specifying all work to be done.
- Never pay the entire amount upfront; instead, set up a payment schedule to release funds in installments only as specific work is completed.
Faced with devastating financial implications, affected homeowners are now strongly demanding stricter regulations and robust consumer protection laws in the housing and renovation sector.
