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Contractor Red Flags and Scams to Avoid in Michigan

Most contractors in Metro Detroit do honest work. The few who do not tend to use the same playbook. Here are the warning signs, the scams Michigan and federal officials warn about most, and what to do if you have been taken.

The pitch

  • They knock on your door because they are "in the area"The FTC lists this as a classic home improvement scam opener.
  • They have "leftover materials" from another jobCommon with driveway sealing and paving cons.
  • They pressure you to decide todayThe Michigan Attorney General warns against "now or never" offers.
  • They want cash, or full payment up frontState advice is never to pay in cash and never to pay in full before the work is done.
  • They ask you to pull the permitThe FTC and Michigan both flag this. It can mean the contractor is not licensed to pull it.

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Warning signs

Contractor red flags, stop if you see these

Any one of these is a reason to slow down. Two or more is a reason to walk away.

  • They knock on your door because they are "in the area." The FTC lists this as a classic home improvement scam opener.
  • They have "leftover materials" from another job. Common with driveway sealing and paving cons.
  • They pressure you to decide today. The Michigan Attorney General warns against "now or never" offers.
  • They want cash, or full payment up front. State advice is never to pay in cash and never to pay in full before the work is done.
  • They ask you to pull the permit. The FTC and Michigan both flag this. It can mean the contractor is not licensed to pull it.
  • No license number, or one that does not match. Check every number on the LARA license lookup.
  • No written contract, or one with blank spaces. Never sign a form that is not filled in.
  • They steer you to their own lender. The FTC warns about scammers who suggest borrowing from a lender they know.
  • They find a sudden emergency during a inspection. Get a second opinion before paying for a "must fix now" repair to your roof, furnace or foundation.
  • No local address or insurance certificate. A cell number and a truck are not enough.

After a storm

Storm chaser roofers and post-storm scams

After high winds, hail or flooding, out-of-area crews often go door to door in Detroit neighborhoods offering fast storm damage repair. Some are legitimate. Others collect an insurance check or a deposit and disappear. The Michigan Attorney General has reissued post-storm alerts after major weather events, and the advice is consistent:

  • Call your insurance company first, before you sign anything with a contractor.
  • Hire a local licensed professional and review credentials and references.
  • Get more than one written estimate.
  • Ask for a contract and read it carefully.
  • Never pay for the entire repair up front, and never pay in cash.

The Attorney General has also warned about government imposters who claim you were picked for storm funding or priority repairs if you pay a deposit and share bank details. Do not pay a deposit or share bank details with anyone who contacts you this way.

Tree work draws the same crowds after a storm. The AG notes that tree services are not licensed in Michigan but deserve the same vetting, with a written quote showing the total cost. Compare local emergency tree removal crews and ask for proof of insurance before anyone climbs.

Driveways

The traveling paver and driveway sealing scam

A crew shows up with a truck of hot asphalt or sealer, says it is left over from a nearby job, and offers a quick discount. The U.S. EPA Office of Inspector General describes this pattern: the work is usually poorly done or unnecessary, the materials are low quality or watered down, and the crew often demands more than the quoted price when the job is finished. A newer twist has fake "EPA agents" return later to demand fines or cleanup fees.

A real asphalt driveway installation starts with a site visit, a written quote covering base prep and thickness, and a scheduled date. The same goes for sealcoating, concrete driveways and paver installation. In Detroit, work on the driveway approach or public sidewalk usually needs a right-of-way permit, which a traveling crew will not pull.

Know the playbook

Common contractor scams in Michigan and how to respond

Deposit and disappear What it looks like Large deposit, then no start date and unreturned calls What to do instead Keep deposits modest and tie payments to milestones. See how to choose a contractor.
Storm chaser roofing What it looks like Door knocking after hail or wind, pushes you to sign over the insurance check What to do instead Call your insurer and compare local Detroit roofers
Leftover asphalt What it looks like Same-day paving at a "discount," price rises at the end What to do instead Get a written quote from a local paving company
Inspection upsell What it looks like Sudden emergency found in your attic, basement or furnace What to do instead Get a second opinion from a home inspector or another contractor
Permit dodge What it looks like Contractor asks you to pull the permit or says none is needed What to do instead Read our permits guide and ask the building department
Lien threat What it looks like Contractor threatens a lien to force payment for disputed work What to do instead Ask for a sworn statement and talk with a contractor dispute attorney
Predatory financing What it looks like Contractor pushes a loan from a lender they pick What to do instead Compare offers from home equity lenders yourself

Where scams cluster

Jobs where contractor scams show up most

Scams follow urgency and hidden work. Take extra care with:

  • Roofing and gutters after storms. Ask for photos of any damage and compare quotes for roof repair.
  • Basements and foundations. Wet basements are common in older Detroit homes, and scare tactics are too. Compare quotes for basement waterproofing and foundation repair.
  • Furnaces in winter. A no-heat call is a bad time to accept a full replacement quote from one company. Get a second HVAC installation quote.
  • Sewer lines. Ask to see the camera footage before paying for sewer line repair. A sewer camera inspection should show the problem.
  • Lead paint in pre-1978 homes. Work that disturbs old paint should be done by an EPA lead-safe certified firm. Find lead abatement pros.

If it already happened

What to do if a contractor scammed you in Michigan

  1. 1

    Stop paying and gather records

    Keep the contract, texts, emails, receipts, cancelled checks, photos and the contractor's license number if you have it.

  2. 2

    Cancel if you still can

    If you signed at home within the last three business days, Michigan's Home Solicitation Sales Act generally lets you cancel by mailing or delivering written notice to the seller.

  3. 3

    Complain to LARA about licensed contractors

    The Bureau of Construction Codes takes written complaints against licensed builders and trades through its enforcement section.

  4. 4

    Complain to the Attorney General

    For unlicensed contractors and consumer fraud, file with the Michigan Attorney General Consumer Protection Team online or call 877-765-8388. The office may try to mediate.

  5. 5

    Report to the FTC and police

    Report fraud at ReportFraud.ftc.gov. If money was stolen, file a police report too.

  6. 6

    Get legal advice if needed

    For liens, large losses or unfinished work, talk with a construction law attorney.

The opposite of a red flag

Green flags, what a trustworthy contractor does

A good contractor gives you a license number without being asked, sends an insurance certificate from the agent, writes a detailed quote, pulls the permit in their own name, and takes payment in stages. They explain what they found and show you photos. They are fine with you getting other quotes. On Rebuild Detroit, look for a profile marked Verified, which means the owner completed the dated checks described on How We Vet. It is not an endorsement, so still check the license yourself.

Pros in your county and town

Pick a county, then a town, for the local pros who work there.

Wayne 42 Oakland 59 Macomb 27 St. Clair 31 Livingston 20 Lapeer 28

Contractor scams, common questions

6 questions

What are the biggest red flags when hiring a contractor?
Door-to-door offers, pressure to decide now, cash or full payment up front, no written contract, no license number, and asking you to pull the permit.
How do I spot a storm chaser roofer?
They show up uninvited after a storm, push you to sign quickly or sign over your insurance check, and often have no local address. Call your insurer first and get written estimates from local roofers.
What is the traveling paver scam?
A crew claims to have leftover asphalt or sealer from a nearby job and offers a cheap same-day job. The EPA Inspector General says the work is often poor and the crew demands more money at the end.
Where do I report a contractor scam in Michigan?
Report licensed contractors to LARA's Bureau of Construction Codes and unlicensed contractors or fraud to the Michigan Attorney General Consumer Protection Team. You can also report to the FTC.
Can I cancel a contract I signed with a door-to-door contractor?
Michigan's Home Solicitation Sales Act generally gives you three business days to cancel a sale made at your home. Send written notice to the address the seller gave you.
Are tree services licensed in Michigan?
The Michigan Attorney General notes that tree services are not licensed by the state, so ask for proof of insurance and a written quote with the total cost.

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Sources

Updated September 2026. Rules and procedures change; confirm with the responsible office before a decision.

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