A
CAUTIONARY TALE
Hurricane Repair Scams: Don't Get Taken by the "Big Fix"
06/01/05
Get ready to batten
down the hatches, you east-coasters: Atlantic hurricane season is officially
underway. And some forecasters warn it could be another stormy year.
But driving winds
and rain may not be the only things coming your way: beware the
home repair rip-off artists who follow in their wake.
We've seen
it again and again in our cases. Home repair crooks swoop
in after hurricanes (not to mention other natural disasters) and prey
on homeowners desperate to get their lives back to normal. These criminals
know that many legitimate companies are booked for months after major
disasters and that some frustrated homeowners won't do their homework
before signing on the dotted line.
What's the "M.O." of
these con artists? Just two examples:
- Let's
say your roof is damaged by a hurricane. A "contractor" knocks
on your door and offers to fix it for a drastically discounted price.
He says he's got some materials left over from other work he did
in the neighborhood. He'll give you the low-ball price—if
you sign the papers today.
- People
claiming to be local utility company workers or building or health
inspectors
appear at your door unannounced and point out "problems" such
as shoddy roofing, a cracked driveway, or dangerous electrical
wiring. They say you're in violation of some regulation and
give you the
name of someone who can fix the problem fast. Then that person
overcharges, performs shoddy work, starts the job and then
says it'll cost thousands
more, or skips town with your $$ before finishing.
Sadly, home repair
scams cost unsuspecting Americans billions of dollars a year. And crooks
often target seniors, low-income families, and others who can least afford
it.
So how can
you protect yourself? A few tips:
- Be wary
of contractors who go door-to-door and aren't listed in the phonebook;
who talk very fast and pressure you to sign papers immediately; who
offer unbelievably long guarantees; who ask you to pay the entire
job up-front and accept only cash; or who suggest you borrow money
from lenders they know.
- Ask trusted
friends or insurance agents to recommend a contractor; then check
the firm's record with your local consumer organization or state
attorney general.
- Deal only
with contractors who are licensed, bonded, and insured.
- Get all
estimates, guarantees, and work dates in writing. Make sure you get
several estimates, and don't necessarily choose the lowest bidder.
When do we
get involved? Mostly, in the case of larger, interstate criminal
rings...when the government is defrauded...and when we learn of big
ticket insurance scams. It's all part of our larger effort to combat
white collar crime.
For your sake
and ours, be crime smart when it comes to home repair work. Ask
lots of questions, do your homework, and remember: if it sounds too
good to be true, it probably is.
Link: Protecting
Yourself from Common Fraud Schemes
Photograph courtesy
of the Federal Emergency Management Agency.
