Scots are being cautioned to be on high alert against fraudulent firms exploiting home insulation scams by falsely claiming ties with consumer watchdogs.
Advice Direct Scotland (ADS), the organisation operating the free consumeradvice.scot service, has seen an increase in homeowner complaints regarding offers to fix poor and mis-sold spray foam insulation. The charity reports receiving calls from across Scotland about companies claim they are working in collaboration with Trading Standards to gain credibility.
Concern is mounting that the same fraudsters who initially tricked consumers into purchasing spray foam might now be distributing customers’ personal information or re-branding to defraud the same individuals again. ADS has highlighted a case involving an 86-year-old man from Glasgow and senior couples from Dundee and Stenhousemuir who were worried after getting identical letters and, occasionally, phone calls.
Collectively, they had spent close to £13,000 on work before the arrival of this strange new correspondence, prompting them or their family members to seek help. Trading Standards Scotland (TSS) explicitly say it does not partner with any spray foam removal firms. ADS has stressed the importance of conducting extensive research on companies before consenting to any work and encouraged homeowners to use vetted tradespeople.
Earlier in the year, TSS issued a warning about the rise in spray foam scams, with incidents increasing by 42 percent in 2023, costing Scottish homeowners an estimated £500,000. Often, cold callers often will propose a free loft inspection, then claim to find dampness or mould and suggest installing spray foam as a solution.
However, warnings are now being issued that this product can cause issues in timber-framed roofs as if installed incorrectly, it can restrict airflow, leading to moisture accumulation and rot. The extraction process is not only challenging but also costly with the average price sitting at around £3,200 for a three-bedroom detached home. It has also reached a point where some mortgage providers are denying loans or equity release until the spray foam has been extracted due to the possible harm it could cause to the property.
In a letter sent to homeowners mentioning Trading Standards and recent media coverage of spray foam sales misconduct, it’s implied that the issuing company has cooperated with “regulatory authorities”.
The letter says: “Our recent investigations have concluded your property may have had spray foam installed. Evidence suggests that properties with this type of insulation may be at risk of increased damp penetration to the roof structure, this may pose a significant threat to property integrity and potential issues with mortgageability and insurability.”
“To address this issue and ensure your property’s safety and insurability, we propose a thorough assessment. We urge prompt access to your property for this vital assessment.”
Advice Direct Scotland has released some crucial guidance for property owners, which urges people to:
- Check if the company has a proper trading address, a landline phone number, and is listed on the National Insulation Association website.
- Get quotes for the work and the price before agreeing to anything.
- Never pay upfront under any circumstances.
- Avoid paying in cash if you can.
- Always ask for a receipt.
- If the work is not up to standard, do not pay until all issues are fixed.
- Make sure any guarantees are backed by insurance.
Hazel Knowles, senior project lead for Advice Direct Scotland, said: “We have received numerous complaints from individuals contacted by traders regarding spray foam loft insulations, claiming to represent Trading Standards and offering removal services.
“By using the Trading Standards name and implying links to authorities, these firms are trying to take advantage of consumers. As awareness of the potential problems with spray foam grows and homeowners face difficulties in selling their properties, it is understandable that people are eager to find solutions, especially if grants or financial support are offered.”
She continued: “We are concerned about potential links between those offering removal services and the rogue traders who initially installed the foam spray insulation. We urge consumers not to deal with cold callers or engage with such letters.”
“Instead, seek traders vetted by Trading Standards who have made a commitment to fair treatment through approved trader schemes. While we have not heard of anyone losing more money, those who have not sought advice may still be at risk from rogue traders.”
“Consumers who are concerned or need help should contact one of our specialist consumer advisers for free, impartial, and practical advice on 0808 164 6000 or www.consumeradvice.scot.”
Fiona Richardson, chief officer of Trading Standards Scotland added: “Trading Standards services are not currently working with any spray foam removal companies in Scotland. Any communication suggesting otherwise is likely to be a scam.
“Consumers who feel they have been misled into having spray foam insulation installed should avoid responding to letters or cold callers offering to remove the insulation. We advise consumers in this situation to report any unsolicited letters which mention a partnership with Trading Standards to Advice Direct Scotland.”
