Residents Urged To Beware Of Scam Artists In Flooding Aftermath
Release Date: May 8, 2007
Release Number: 1695-007
» More Information on New Hampshire Severe Storms and Flooding
PORTSMOUTH, N.H. - State and federal disaster recovery officials advise New Hampshire residents who suffered disaster-related damages following the April flooding to be careful when hiring unknown contractors to clean up and repair their homes and businesses.
"We are urging residents to be alert and report potential fraud as they cleanup after the flooding and during rebuilding efforts," said Albie Lewis, federal coordinating officer in New Hampshire for the Federal Emergency Management Agency (FEMA). "We want anyone who tries to take advantage of the circumstances following a disaster to be prosecuted to the fullest extent of the law."
While no specific cases have been reported, if applicants' homes were damaged by recent storms and flooding, some people may show up at the door and recommend that residents make expensive or unnecessary repairs. Others may offer to process disaster applications for a fee. Residents should know that federal or state disaster inspectors do not recommend repairs and NEVER charge a fee for any inspection of a home. If someone appears at the door claiming to be a FEMA or federal disaster official, residents should ask for photo identification.
Those who suspect anyone - a contractor, inspector, disaster victim or someone posing as any of these - of committing fraudulent activities should make a report to their local law enforcement office. They may also call the FEMA Fraud Hotline at 1-800-323-8603. Individuals reporting suspicious activity do not have to give their names.
"We are working hard to ensure those who suffered as a result of the April flooding receive the assistance they need," said Michael Poirier, state coordinating officer for HSEM. "People should remain vigilant and report questionable contractor activities so that victims of the flooding do not become victims of fraud."
Emergency management officials also offer the following suggestions on how to be a wise consumer:
- Use reliable, licensed contractors. Contact your local building inspector's office for information on local contractors. You may also check with the local Better Business Bureau, homebuilders' association, trade council, or the Attorney General's Consumer Protection Hotline (1-888-468-4454) to see if the contracting firm has any unanswered complaints against it.
- Get a written estimate. Be sure to obtain a written estimate for the job and read the fine print. Compare the services and prices of several reputable contractors before making a final decision. Hire local contractors, if possible. Some contractors charge a fee for an estimate, which is often applied to the price of subsequent repairs they make.
- Check references. Contractors should be willing to provide the names of previous customers. Call some former customers who had similar work done to make sure they were satisfied with the job.
- Ask for proof of insurance. Make sure the contractor carries general liability insurance and workers' compensation. If the contractor is not insured, the homeowner may be liable for accidents that occur on the property or to the house/building.
- Insist on a written contract. A complete contract should clearly state all the tasks to be performed, all associated costs and the payment schedule. Never sign a blank contract or one with blank spaces. Make sure the contract clearly states who will apply for the necessary permits or licenses. Have a lawyer review the contract if substantial costs are involved and keep a copy for your records.
- Get any guarantees in writing. Any guarantees made by the contractor should be written into the contract. The guarantee should clearly state what is guaranteed, who is responsible for the guarantee and how long the guarantee is valid.
- Have work inspected. If excavation work is being performed (e.g., sewers or basement walls) make sure a qualified inspector examines the work before it is hidden from view to avoid similar problems in the future.
- Make final payments when the work is completed. Do not sign completion papers or make the final payment until the work is completed to your satisfaction. A reputable contractor will not threaten you or pressure you to sign if the job is not finished properly.
- Pay by check. Avoid on-the-spot cash payments. The safest route is to write a check to the contracting company. A reasonable down payment is 30 percent of the total cost of the project, to be paid upon initial delivery of materials. Federal law gives consumers a three-day "cooling off" period for unsolicited door-to door sales of more than $25.
- Cancel the contract if necessary. Canceling a contract should be done within three business days of signing. Be sure to follow the procedures for cancellation that are set out in the contract. Send the notification by registered mail with a return receipt to be signed by the contractor.
Consumers who have problems with a contractor or have been victims of fraud are urged to contact the New Hampshire Attorney General's Consumer Hotline at 1-888-468-4454.
FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.
New Hampshire Homeland Security and Emergency Management is responsible for coordinating the state's emergency response to major natural and manmade disasters.
Last Modified: Tuesday, 08-May-2007 13:45:09