Hurricane Isaac ravaged the Gulf Coast a week ago. Unfortunately, he was just the beginning of the hurricane season. Sadly, these disasters also bring out a particular breed of rip-off artist that preys the traumatized and financially-strained victims of the tragedies.
Catastrophe wanted with storm chaser
James Quiggle is a spokesman from the Coalition Insurance Fraud, a group of insurance corporations, consumer groups and government agencies. He explained:
"They're called storm chasers, going town to town where disaster strikes to descend on traumatized homeowners and causing more problems than they fix. And they often prey on senior citizens."
The National Insurance Crime Agency pointed out that we are seeing increasingly more of them out there.
Problems taking place
Much of the scamming contractors will leave without doing work, though some of them actually do the work. The only issue is that they do a terrible job and leave permanent damage that will not be covered by homeowner's insurance. It is always a bad sign when the contractor asks for money upfront before they complete the task.
Ways to stay away from the cons
-- Ask your insurance agent or the Better Business Agency for a list of approved contractors in your area before giving any repair person a green light.
-- The contractor should show you a license first.
-- Never let somebody work for you if they give you a P.O. box for an address or if they do not have a business card.
-- Deposits should never be more than 25 percent of the total estimated contract, and should not be paid until building materials are delivered to your home.
David Guillory, interim director of the East Baton Rouge Parish Department of Public Works, said:
"You really shouldn't be paying for work that's not done. If somebody says, 'Pay me half and I'm going to go get some other equipment,' or go get another crew or something, that should send a red flag up."
Frauds with vehicles
Following intense flooding, as often accompanies hurricanes, fraudsters with unauthorized automotive "chop shops" will snatch up all the totaled luxury vehicles they can for a song at insurance auctions. Then they will rebuild these vehicles with shoddy materials and craftsmanship and resell them on the auction circuit to unsuspecting consumers.
The automobiles tend to run well for a few months before they break down and turn into cash pits. Avoid them.
Scams to stay away from
Whether you are getting at auction or individually, you need to take your car to a reputable mechanic and get it looked at before making the final purchase. It never hurts to get the CARFAX on an automobile just to look at its reported history.
Catastrophe wanted with storm chaser
James Quiggle is a spokesman from the Coalition Insurance Fraud, a group of insurance corporations, consumer groups and government agencies. He explained:
"They're called storm chasers, going town to town where disaster strikes to descend on traumatized homeowners and causing more problems than they fix. And they often prey on senior citizens."
The National Insurance Crime Agency pointed out that we are seeing increasingly more of them out there.
Problems taking place
Much of the scamming contractors will leave without doing work, though some of them actually do the work. The only issue is that they do a terrible job and leave permanent damage that will not be covered by homeowner's insurance. It is always a bad sign when the contractor asks for money upfront before they complete the task.
Ways to stay away from the cons
-- Ask your insurance agent or the Better Business Agency for a list of approved contractors in your area before giving any repair person a green light.
-- The contractor should show you a license first.
-- Never let somebody work for you if they give you a P.O. box for an address or if they do not have a business card.
-- Deposits should never be more than 25 percent of the total estimated contract, and should not be paid until building materials are delivered to your home.
David Guillory, interim director of the East Baton Rouge Parish Department of Public Works, said:
"You really shouldn't be paying for work that's not done. If somebody says, 'Pay me half and I'm going to go get some other equipment,' or go get another crew or something, that should send a red flag up."
Frauds with vehicles
Following intense flooding, as often accompanies hurricanes, fraudsters with unauthorized automotive "chop shops" will snatch up all the totaled luxury vehicles they can for a song at insurance auctions. Then they will rebuild these vehicles with shoddy materials and craftsmanship and resell them on the auction circuit to unsuspecting consumers.
The automobiles tend to run well for a few months before they break down and turn into cash pits. Avoid them.
Scams to stay away from
Whether you are getting at auction or individually, you need to take your car to a reputable mechanic and get it looked at before making the final purchase. It never hurts to get the CARFAX on an automobile just to look at its reported history.
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