Melanie Lawder

WISCONSIN RAPIDS – Consumers beware: the unfamiliar contractor who claims to have "local" roots might not be telling the truth — and a new state law can help protect you from any suspicious business practices.

Stormchasers — contractors that travel from town to town, looking for work — often utilize questionable business practices and hide behind the guise that they are locally owned to persuade consumers to use their services.

"The stormchasers are a real and ongoing issue all across the Midwest," said Sandy Chalmers, trade and consumer protection administrator at the Wisconsin Department of Agriculture, Trade and Consumer Protection.

Wisconsin Rapids is presently home to a slew of temporary contractors after a July hailstorm left some golf-ball sized dents on cars and roofs.

This need for home repair led to an influx of contractors, eager to turn a profit. More than 32 contractors have registered with Wisconsin Rapids for transient merchant permits, according to city records.

"What we see on a regular basis is these fly-by-the-night contractors following the path of a storm and using the promise of negotiating with an insurance company or paying the deductible to entice the consumer into signing a contract quickly," Chalmers said.

However, a new state law — statue 100.65 — went into effect Jan. 1,and it aims to protect consumers from the predatory practices of stormchasers.

It's a law consumers should know about, Chalmers noted.

"This new law gives us new tools to help crack down on specific practices that are used by stormchasers," Chalmers said.

Under this new law, residential contractors cannot promise to pay or rebate all or any portion of an insurance deductible to entice consumers to use their services.

This means it's illegal to accept a coupon advertising such a deal — and you should do your best to avoid being lured in, said Adam Bensman, chief operating officer of ARC Contracting.

If a contractor does offer a generous discount or says it will pay your deductible, be skeptical, Chalmers said. If it sounds too good to be true, it probably is.

Still, just because a contractor offers discounted services, it doesn't mean it's a stormchaser, Bensman said. After all, rules vary by state, and Wisconsin's law is relatively new to the books.

"Out-of-state contractors that travel are very likely not aware of the regulation change in January," Bensman said.

In addition, the new state law now gives consumers a three-day period to cancel a contract after they receive notice from their insurer that their claim has been partially denied or denied in whole. Further, contractors must inform their costumers, in writing, of their three-day period to cancel a contract.

Anybody convicted of breaking this new law can be fined from $500 to $1,000 for each violation.

July's hailstorm isn't the first time Wisconsin Rapids has acted as a hub for temporary contractors.

In 2007, Wisconsin Rapids saw a hailstorm that wreaked havoc on the homes of many residents. Shane Blaser, Wisconsin Rapids city clerk, said that storm brought about 50 out-of-town contractors to the city — and a lot of consumer complaints with it.

This time around, Blaser said the city has not received any complaints about the quality of the contractors' work.

"I think our homeowners are more educated this time," Blaser said. "So they are not quick ... to sign contracts."

But just because there has yet to be any complaints, it doesn't mean you should let your guard down, Blaser said.

"There isn't an urgency to get your roof done right now; make sure you read your contract very carefully, and if you don't understand something, talk to your neighbors and family, talk to multiple contractors, find somebody you're comfortable with," Blaser said.

Chalmers recommended consumers take a number of steps to prevent being scammed by contractors looking to make a quick buck. She advises consumers use local contractors — or a business that's likely to be in town two to three years from now — and seek referrals from friends and family.

In addition, be wary of those contractors who come to your door to make a high-pressure sales pitch. Don't let them into your house, Chalmers said, as it is much harder to refuse a salesperson who is physically in your home.

If you suspect a contractor of violating the law, you can file a complaint online at datcp.wi.gov or call 800-422-7128.

Melanie Lawder can be reached at mlawder@cwnews.net or 715-423-7200. Find her on Twitter as @mel_lawder.