Beware of Building and Recovery Scams After Storm

It’s sad but true that there are people who do all kinds of things to take advantage of hurricane victims. Storm victims are anxious to get their lives back to normal and want to get work done quickly. This opens the door to scam artists who are waiting to profit from victims’ misfortune.

Scam artists may use price gouging, home-repair or tree services and even charities to get your money during these times, said Dr. Bernice Wilson, an urban resource management specialist with the Alabama Cooperative Extension System.

Before hiring anyone to make repairs, take pictures of the damage to your home and possessions. Photos provide evidence of the damage for insurance purposes and should be taken before any work is done. Next, check with your insurance company and talk with an adjuster about filing claims. With the vast amount of damage caused by recent storms, it may take a while before an insurance adjuster can reach you.

“Be wary of strangers who drive up and offer to help with home repairs or tree removal for a fee,” said Wilson.

It’s best to get several estimates for repairs even if it takes a little longer.

Never pay in advance for repair work. Get a contract in writing for the work to be done. Both parties should sign the contract. If you use an individual, ask to see identification, such as a driver’s license with address and phone number, a current business license and/or Social Security card. Write down all the information on these cards. You may even want to call the Better Business Bureau to make sure there have been no complaints of bad work on the person. If the person is legitimate, they should have a contract in their car or not be afraid to sign one you both agree to.

Telephone scams are also ways to get your money, Wilson added.

“Don’t buy or agree to pay money over the phone to people offering repairs or to those collecting money for hurricane victims. The same is true for people appearing at your door collecting money. Don’t agree to give them money or give them your credit card numbers. Get a name and number and call them back after you have checked their legitimacy with Better Business Bureau or your state attorney general’s office. Even if they say they are from a known charity, better to check and be safe than not check and be sorry.“

Price gouging is illegal anytime the governor declares a state of emergency. Merchants or individuals cannot charge any more for their products after a state of emergency has been declared than they did before the declaration. Violations of the price gouging laws carry criminal penalties, including a possible prison sentence.

Source: Dr. Bernice Wilson, Urban Resource Management Specialist, Alabama Cooperative Extension System

Posted by lawremc at February 19, 2008 10:20 AM | TrackBack