Beware Of Scams!
Release Date: October 11, 2003
Release Number: 1492-45
» More Information on Maryland Hurricane Isabel
BALTIMORE -- State and federal officials warn that if you have suffered losses from the recent hurricane and storms, you should be alert for people trying to cheat you.
Most contractors are reputable, hard-working individuals. Unfortunately, there are those who try to take advantage of storm victims. Be alert for door-to-door solicitors who hand out flyers and ask for large cash deposits or advance payment in full. Insist on seeing identification. Be especially alert for phone solicitors who ask for banking information, Social Security number or other personal information. Do not give out this information.
Individuals affected by the recent disaster also should be aware of the following:
- Ask contractors for proof of insurance. Be sure the contractor has both disability and workers' compensation insurance. If a contractor is uninsured, you may be liable for accidents on your property.
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Ask for a written estimate and check to make sure it includes everything you expect the contractor to do, as well as taxes and any other fees. Some contractors charge for an estimate, which is understandable because they are very busy after a disaster.
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Ask for a written contract and never sign a blank contract. The contract should include all tasks to be performed, all associated costs, payment schedule and who is responsible for applying for necessary permits and licenses. Also ask for a written guarantee.
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Legitimate contractors and other service providers normally do not require more than one-third as a down payment. Don't give anyone an advance payment in cash-pay by check-and make sure your payment schedule is clearly spelled out in your contract.
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FEMA does not endorse individual loan companies or contractors, so be wary of any business that claims it has governmental support.
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The only way to apply for disaster assistance from FEMA is by calling the toll-free teleregistration number at 1-800-462-FEMA (3362), TTY 1-800-462-7585. The deadline for registration is November 18.
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Be suspicious of anyone who offers to increase the amount of your disaster damage assessment.
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Be leery of offers to help you fill out loan or grant forms and applications for a fee. If you need help filling out your Small Business Administration (SBA) loan package, call the SBA toll-free number at 1-800-659-2955 or the FEMA Helpline at 1-800-525-0321, TTY 1-800-660-8005. You also can visit with an SBA representative at a Disaster Recovery Center (DRC).
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Always read carefully all document applications, vouchers and other papers relating to disaster assistance. If you have questions about the legality of a document claiming to be from FEMA, call the Helpline.
- A common scam occurs when a person poses as an inspector or loss verifier of flood-damaged property. Some of these "inspectors" charge a fee for what they do. Some may have official-looking identification that they use to get inside residents' property.
If you think you have been victimized by fraud or if you suspect fraudulent activity, call the Maryland Attorney General's Consumer Protection Division at 410-528-8662 or toll-free, 888-743-0023, and ask for consumer protection division.
On March 1, 2003, FEMA became part of the U.S. Department of Homeland Security. FEMA's continuing mission within the new department is to lead the effort to prepare the nation for all hazards and effectively manage federal response and recovery efforts following any national incident. FEMA also initiates proactive mitigation activities, trains first responders, and manages Citizen Corps, the National Flood Insurance Program and the U.S. Fire Administration.
Last Modified: Tuesday, 14-Oct-2003 07:57:43