Someone’s at Your Door: What to Do Before You Sign or Pay

The DC Office of the Attorney General lists contractors who show up at your door unannounced saying they just happened to be in the neighborhood as a warning sign.¹ It lists contractors who pressure you to hire them immediately in order to receive a discount as another.¹ And it flags contractors who demand payment upfront or payment in cash, or who offer to arrange financing for you.¹

Any single item on that list can have an innocent explanation, and some door-knockers may be honest. But a surprise, a deadline, and a request for money make up the classic doorstep script. When you hear two of the three, you have all the reason you need to end the conversation.

A friendly face and a printed flyer are not credentials. A license number is, and it can be checked in a few minutes.

Maryland’s Home Improvement Commission tells homeowners to ask to see every contractor’s MHIC license and then check with MHIC to make sure the license is still current.² In the District, the attorney general’s office advises that before hiring a contractor, you first ensure the contractor is licensed with the Department of Licensing and Consumer Protection.¹

The stakes are real. The Maryland commission warns that it is a criminal offense to do home improvements without a license, and that there is no protection from the Guaranty Fund for the homeowner who uses an unlicensed contractor.³ Our step-by-step walk-through of the lookup is in How to Verify a Contractor’s License in Maryland.

Even a signature made under pressure is not always final.

The FTC says its Cooling-Off Rule gives you three business days to cancel if you sign a contract in your home or anywhere that is not the seller’s permanent place of business.⁶ You do not have to give a reason for canceling.⁶ Maryland’s door-to-door sales statute includes a notice that tells the buyer they may cancel the transaction at any time prior to midnight of the third business day after the date of the transaction.⁵ For home-improvement contracts sold at your home, Maryland gives you longer: the notice lets you cancel before midnight of the fifth business day after the sale, or the 7th business day if you are at least 65 years old.⁷

The FTC also notes that some states require door-to-door salespeople to state up-front their name, the company’s name, and what they’re selling, and that others require them to show a sales license and photo ID.⁶ That tip sheet was written about home security systems, so treat it as a model of what to ask for rather than a ruling on any one sale.

Money is where a pushy pitch turns into a real loss, so set your limits before anyone knocks.

The Maryland commission’s advice is blunt: pay no more than 1/3 down as a deposit, and never pay cash.² The commission also states that a contractor cannot accept more than 1/3 of the contract price as a deposit, and may not accept any payment until the contract is signed.⁴

That contract has to be on paper. The commission says the contract must be in writing and be legible,⁴ and that a home improvement contract must contain the name, address, and MHIC license number of the contractor.⁴ In the District, general contractors and home improvement contractors must have a written contract signed by the consumer and the contractor before accepting payment.¹

For more on why cash and big deposits are the tell, read Why You Should Never Pay Cash Up Front.

Do not panic, and do not ignore it. Find the cancellation notice and every page you were handed, and read the dates first. The sooner you act, the more options you keep.

Cancel in writing, keep copies of everything, and keep proof of when and how you sent it. If you paid by credit card, call your card company and ask what options you have. Then report what happened to your state or local consumer protection office, so the next neighbor on the block gets a warning.