10 HVAC Scams: How To Recognize Them and Protect Your Money

Sep 5, 2024 | Fraud | 0 comments

In all kinds of industries, there are people willing to lie and spread misinformation to scam others out of their money. For example, through fake websites, phishing or fake invoices. The HVAC industry is no different. There are dozens, if not more, different types of HVAC scams. 

In this post, we will show you the common HVAC scams, explain how your HVAC unit works to help you identify potential scams, and share the best ways to protect yourself.

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What is a HVAC Unit?

HVAC stands for Heating, Ventilation and Air Conditioning. These units regulate the temperature, humidity, and overall air quality within a building, ensuring that the systems maintain an adequate and tolerable temperature.

As its acronym shows, a single HVAC unit is capable of multiple functions, such as:

  • Heating: This function is handled by various devices such as heaters, boilers, heat pumps, and radiators, all designed to warm up the indoor air during the months with low temperatures.
  • Ventilation: Ventilation ensures that the air within a building circulates freely and gets filtered, often through a system of ducts. This process circulates fresh air and removes contaminants, maintaining good indoor air quality.
  • Air Conditioning: Air conditioning systems are responsible for cooling the air. Whether it’s a central air conditioning unit, a ductless mini-split system, or a window unit, the goal is to reduce the indoor temperature. 
A modern living room with a sleek gray couch, a stone-textured fireplace, and a mounted AC unit on a clean white wall

What Are The Most Common HVAC Scams?

Scammers will take advantage of their customers’ poor knowledge on how HVAC units work, by trying to overcharge them or making unnecessary repairs. Here’s how the scam works, and we offer a series of tips to protect yourself:

1. Overcharging for Parts and Labor

One of the most frequent HVAC scams is increasing the cost of the parts and the labor needed to install them. It’s not unusual for homeowners to be shocked when the final bill exceeds the initial estimate.

Other technicians may add unexpected charges, claim additional repairs are needed, or exaggerate the cost of replacement parts.

  • How to Protect Yourself: Always request a detailed, written estimate before any work begins. In other words, a broken down bill of each part and installation process. Make sure that any changes made during the service are clearly documented and communicated to you in advance.

2. “Too Good to Be True” Deals

If an HVAC contractor offers an extremely low service fee or big discounts, it should raise a warning sign. Scammers often use these attractive offers to lure unsuspecting homeowners, only to deliver poor-quality service or tack on hidden costs later.

  • How to Protect Yourself: Always insist on a formal agreement that outlines all services and associated costs. If an offer seems too good to be true, it probably is.

3. Constantly Replacing Components

Another form of scam happens when a technician recommends replacing parts that are still fully operational. This unnecessary replacement of expensive HVAC components, such as a furnace heat exchanger or an air conditioner compressor, can increase repair costs beyond what’s really needed.

  • How to Protect Yourself: Before agreeing to any part replacement, ask for a clear explanation of how the part works and, if necessary, seek a second opinion from another technician.

4. Urgent System Replacement

Be cautious of contractors who pressure you into replacing your entire HVAC system immediately, especially when a simple part replacement could do the work. Some unethical technicians may push for a complete system replacement costing thousands of dollars when a simple repair would do the trick.

  • How to Protect Yourself: As we advised earlier, seeking an alternative opinion from trusted technicians could help you make a decision before committing to an expensive HVAC replacement. If two technicians offer drastically different opinions, it’s a warn sign that something may be wrong.

5. Falsely Representing a Trustworthy Business

Scammers sometimes pretend to be official technicians from well-known HVAC companies, offering free inspections to come to your house. Once inside, they may be trying to push unnecessary services or repairs.

  • How to Protect Yourself: Never accept offers of repairs and/or replacement from people from whom you haven’t asked for their services, for example, an online quote. Verify their credentials and make sure they arrive in a branded vehicle or uniform.

6. Unnecessary Inspections

Despite the fact that HVAC units require maintenance from time to time, some companies may try to upsell unnecessary inspections. They might offer free exams as a way to get a foot in the door and then suggest needless services.

  • How to Protect Yourself: Stay informed about cold-calling businesses offering free inspections and too-good-to-be-true services. Always ask for a website and/or additional social media to get more information about their company, and by doing so, you can also start protecting your phone number from scammers.

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Close-up of an old radiator in a tiled room, showing the metal fins that distribute heat throughout the space

How Do HVAC Units Work?

Not all HVAC units are created equal. Depending on your region’s average temperature, seasons, exposure to sunlight, your property’s size and many other factors, you may prefer one type of HVAC unit over the others. Here’s how the most common units work:

1. Boiler

  • Function: They heat water, which circulates through radiators to warm each room. Some systems use steam instead of water.
  • Energy Efficiency: Boilers produce more heat while using less fuel compared to furnaces. They can also be combined with a water heater for added efficiency.
  • Considerations: Although efficient, boilers are expensive to install and repair. They would need maintenance more regularly than other units and safety checks, due to the heat and pressure involved.

2. Central Air Conditioner

  • Function: Central AC units cool air, which is distributed through ductwork controlled by a thermostat. These systems help remove humidity from the air as well.
  • Benefits: Effective in hot climates and help filter out dust, pollen, and other allergens from the air. For example, properties in states such as Arkansas, with its warm weather, would benefit from this unit.
  • Considerations: Central AC systems are costly to install and operate. The ductwork requires periodic cleaning to prevent mold, mildew, and pests.

3. Ductless Mini-Split System:

  • Function: Mini-splits cool individual rooms without the need to install ducts throughout the house. They consist of an outdoor condenser and indoor air handlers.
  • Benefits: More energy-efficient than central AC, easy to install, and suitable for homes without existing infrastructure for ductwork.
  • Considerations: Less effective in very hot climates and takes up visible wall space.

4. Electric Heat Pump

  • Function: Heat pumps provide both heating and cooling, using about 50% less electricity than traditional heating systems.
  • Benefits: Ideal for milder climates, eco-friendly, and cost-effective on energy bills. They don’t use fossil fuels, eliminating carbon monoxide risks.
  • Considerations: Heat pumps can be expensive to install and are less effective in freezing temperatures.

7. Constantly Pushing for a Larger System Size

A bigger HVAC unit will do a better job at cooling/heating your house, but it also means higher installation and maintenance costs. Some contractors might recommend installing an oversized unit, claiming it’s more efficient, just to charge you more. 

  • How to Protect Yourself: If you live in the USA, there are manual HVAC load calculators that give you an approximation of the required unit your house needs. If the installation company insists on a larger one, ask for a reasonable explanation. 

8. AC Refrigerant Recharging

If a contractor suggests recharging your AC refrigerant without addressing the underlying issue, you might be dealing with a scam. Typically, if your system needs a recharge, it means a refrigerant leak should be repaired.

  • How to Protect Yourself: Be careful of contractors who recommend a refrigerant recharge without diagnosing the real cause or showing solid proof of a leak.

9. Dirty Filter Deception

Over the years, dishonest technicians have started tricking customers by showing them dirty filters they brought with them, claiming they’ve taken them from your HVAC system. They use this as an excuse to try to sell you expensive air quality treatments or new filters.

  • How to Protect Yourself: Learn how to inspect and replace your HVAC filter yourself to avoid being scammed by this.

10. Air Duct Cleaning Scams

The need for air duct cleaning is often debated in the HVAC industry, but some companies exploit this by pushing frequent, unnecessary cleanings. These scams involve exaggerated health risks and low-priced offers that typically lead to low-quality work.

  • How to Protect Yourself: Only agree to duct cleaning if there is clear evidence of mold growth or pest infestations. Ask the company to provide video proof from their initial inspection.
A close-up of a wall-mounted HVAC unit with a visible fan and electrical connections against a white and blue exterior wall

What Are The Most Trustworthy HVAC Companies?

Choosing a reliable HVAC company is no easy task, considering there are hundreds of choices, depending on your location. Other factors play a role as well, such as your budget, your property’s needs, among many others. Here are some of the best choices available: 

1. Trane

  • Features: Trane is known for its powerful systems and outstanding customer support. Their heat pumps are quieter than many competitors, making them a popular choice for homeowners. Their products also offer a high SEER ratings, around 22.
  • Price range: A 2.5-ton AC unit with a coil averages around $4,600 (excluding installation).
  • Warranty: Trane offers competitive warranty options, including a 10-year parts warranty and a 12-year compressor warranty.

2. Carrier Heating and Cooling

  • Features: Carrier products typically have SEER ratings higher than industry averages, reflecting their commitment to energy savings. Carrier is backed by a vast network of professional installers and provides solid warranty coverage.
  • Price range: The average cost of a 2.5-ton AC unit with a coil is approximately $1,930 (excluding installation).
  • Warranty: Their warranties include 10 years on parts and compressors.

3. Lennox

  • Features: Lennox leads the market with some of the highest SEER ratings, reaching up to 28 for certain models. Their units are designed for quiet operation and come with modern features like variable-speed compressors and smart thermostat compatibility.
  • Price range: A 2.5-ton AC unit with a coil averages $3,794 (excluding installation).
  • Warranty: They offer a 10-year warranty on both parts and compressors.

Learn to Protect Yourself From HVAC Scams with CDN

According to the latest Residential Energy Consumption Survey, nearly 90% of U.S. households used some type of HVAC unit in 2020, and since then, this number has been growing. At the same time, the number of scammers is likely to increase as well.

By learning how to protect yourself from these common scams, you can avoid unnecessary repair and maintenance costs. At Cryptoscam Defense Network (CDN), we believe that sharing knowledge on how to protect your wallet from online fraud but also, scams that might come knocking at your door.

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