Don't Be A Victim Twice - Watch Out For Scams
Release Date: July 1, 2003
Release Number: 1474-13
» More Information on West Virginia Severe Storms, Flooding and Landslides
Charleston, WV -- As West Virginians recover from the severe storms, flooding and landslides that began on June 11, scam artists and price gougers may rear their ugly heads. The Federal Emergency Management Agency (FEMA) and the West Virginia Office of Emergency Services want those affected by the recent storms to stay consumer alert.
"In disaster situations, scam artists are often ready to take advantage of the misfortunes of others," warns State Coordinating Officer Steve Kappa. "Those affected by the disaster need to take precautions so that no one profits illegally from their losses."
Disaster victims are particularly vulnerable to these types of fraud because their needs are immediate, and sometimes they have few alternative choices. Price gouging happens when a supplier marks up the price of a product more than is justified by his actual costs. That's why it's important for those affected by the flooding to be aware of potential fraud.
Also, many will seek contractors to repair or rebuild their homes. Most contractors are reputable individuals. Some, however, may try to take advantage of disaster victims during the reconstruction phase.
Look first to licensed local contractors who have performed well in the past. If they cannot help you, ask them to recommend reputable contractors.
Some government building departments and trade associations keep lists of licensed contractors who work in the community. Also, the Better Business Bureau keeps records of complaints against contractors.
Be especially alert to door-to-door solicitors who hand out homemade flyers and ask for large cash deposits or advance payments in full. To protect yourself, use the following information as a guide:
- Does FEMA, the West Virginia Office of Emergency
Services, or the State of West Virginia license contractors?
Neither federal nor state emergency management approves or licenses contractors, but the State of West Virginia does issue contractor licenses from the West Virginia Division of Labor. If a contractor says he is licensed by the state, ask to see his license number. You can also call 1-877-558-5134 to validate a contractor's license.
- What types of payment arrangements are best when
contracting for home improvement work?
Most reputable contractors accept payments based upon the percentage of work completed. When negotiating a payment schedule with a contractor, never make a full payment up front and always insist on a receipt for any partial payment.
- Should an agreement for home improvement work be
made in writing?
It's a good idea to get it in writing. If a contractor refuses to enter into a written agreement and a problem occurs, you may have no legal recourse.
- Do reputable contractors solicit door-to-door?
Most reputable contractors do not solicit door-to-door.
- What should be done if a contractor starts a project
and does not return to complete it?
If a contractor starts a project but does not return to complete it, you should immediately call the West Virginia consumer protection fraud hotline at 1-800-368-8808.
Last Modified: Tuesday, 01-Jul-2003 12:58:06