New rules cracking down on car and construction companies who charge way above their quote are in the pipeline says Community and Cultural Affairs Minister Wayne Perinchief.

He said consumers were being lured in with low quotes and then being held hostage once work had started.

Laws to limit the percentage by which a bill can exceed the original quote for items such as building work and auto repairs are likely to be introduced in the coming year.

He told The Royal Gazette: "This will provide protection to the consumer from service providers who deliberately underestimate the job — to bait you in — and then charge an excessive amount for services rendered.

"We would be able to prosecute people for doing that." He said price rises of five to ten percent over the original quote were typical in many countries.

"But in Bermuda there are massive overcharges — 25 percent and more, for maybe a spray paint job to a prang to your bumper," said Mr. Perinchief. But if they have your car you are shafted right? They took it apart, you have to get it back on the road, so you pay the price. "It is basically the automative industry which is the biggest offender."

His department said there had been 1,021 automative complaints from 2001-2006 — including 821 car sale and repair complaints and 183 complaints about bike sales and repairs.

But Mr. Perinchief said the issue also applied to builders who exceeded a quote.

Construction Association President Alex DeCouto said the issue of building costs exceeding original estimates was not so clear cut.

"I have had people call the Construction Association saying in their mind they have been ripped off by somebody. But it isn't so black and white. There is nothing to say legitimate extras didn't crop up and the job doubled in price."

He advised home owners not to try to manage a building project themselves unless they had expertise but to either retain the architect to do so or hire a project manager.