Protecting Homeowners from HVAC Contractor Fraud in Michigan

After severe weather events, unlicensed HVAC contractors often exploit homeowners in Oakland County, Michigan, who urgently need repairs. In 2025, the Michigan Attorney General's Consumer Protection Team received over 12,000 complaints about contractors, ranking it among the state's top complaint categories. The FTC recorded over 81,000 home improvement fraud cases nationwide in 2024, underscoring the issue's widespread nature. Data from the Better Business Bureau shows that more than 70% of scam victims suffered financial losses, with a median individual loss of $1,800.

Extreme weather in Southeast Michigan, including record cold in January 2026 and intense heat in June 2025, prompts hasty searches for HVAC services, increasing the risk of fraud. Elijah, from Detroit Heating and Cooling Co., highlights the severity of unlicensed contractor issues, noting that the FTC logged nearly 82,000 home improvement fraud reports in one year. The National Insurance Crime Bureau notes a sharp rise in contractor fraud following severe weather, heavily impacting Michigan. Enforcement records confirm the scale of the problem, exemplified by a November 2023 operation by the Michigan Attorney General's office that resulted in multiple arrests related to unlicensed contractor activities.

Homeowners should conduct due diligence when hiring HVAC contractors to ensure proper licensing and insurance coverage. Elijah advises verifying licenses through the Department of Licensing and Regulatory Affairs (LARA), securing proof of insurance, obtaining multiple estimates, and insisting on a detailed written contract. It's also prudent to avoid full upfront payments. In cases of suspected fraud, reporting to LARA or the Michigan AG's Consumer Protection Team is recommended.