Many Gulf Coast consumers are finding themselves not only traumatized by the ravages of Hurricane Isaac last week, but are also facing severe financial stress in the wake of storm damages. Unfortunately, this can be a situation that a particularity low kind of scammer seeks out. These so-called "storm chasers" unscrupulously pick the pockets of people when they are at their most vulnerable. And the storm season is far from over.
Wanting catastrophe to come
The Coalition Against Insurance Fraud is an alliance of insurance businesses, government agencies and consumer groups. A spokesman for the group, James Quiggle, told the Association of American Retired Persons:
"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."
And, according to Frank Scafidi of the National Insurance Crime Bureau, they are increasing.
Real problems
Contractor cons usually involve a construction bidder asking for money upfront to repair storm damage. After they are paid, they are gone, like Isaac, with the wind. If they do really perform any repairs, the workmanship and materials are generally shoddy, requiring it to be redone correctly at some time after the scammer has disappeared. And sadly, homeowners insurance will probably not cover repairs handled by unlicensed or unauthorized contractors.
Ways to keep away from the frauds
-- Before letting anybody complete repairs, ask the Better Business Bureau or your insurance agent for a list of approved contractors.
-- The contractor should show you a license first.
-- Contractors with no business card are probably shady.
-- 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 works at the East Baton Rouge Parish Department of Public Works as an interim director. He 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."
Cons all over
After a devastation, fraudsters will go to insurance auctions and buy as many vehicles as they can for a song. They will then put the vehicles back together with really bad materials and craftsmanship.
The vehicles break down a lot and turn into money pits even though they will run well for a couple of months.
Scams to stay from
Get an automobile history report from CARFAX or another trusted company before buying a car, and make sure you get a mechanic to inspect the car first. Do this whether you are getting at auction or individually.
Wanting catastrophe to come
The Coalition Against Insurance Fraud is an alliance of insurance businesses, government agencies and consumer groups. A spokesman for the group, James Quiggle, told the Association of American Retired Persons:
"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."
And, according to Frank Scafidi of the National Insurance Crime Bureau, they are increasing.
Real problems
Contractor cons usually involve a construction bidder asking for money upfront to repair storm damage. After they are paid, they are gone, like Isaac, with the wind. If they do really perform any repairs, the workmanship and materials are generally shoddy, requiring it to be redone correctly at some time after the scammer has disappeared. And sadly, homeowners insurance will probably not cover repairs handled by unlicensed or unauthorized contractors.
Ways to keep away from the frauds
-- Before letting anybody complete repairs, ask the Better Business Bureau or your insurance agent for a list of approved contractors.
-- The contractor should show you a license first.
-- Contractors with no business card are probably shady.
-- 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 works at the East Baton Rouge Parish Department of Public Works as an interim director. He 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."
Cons all over
After a devastation, fraudsters will go to insurance auctions and buy as many vehicles as they can for a song. They will then put the vehicles back together with really bad materials and craftsmanship.
The vehicles break down a lot and turn into money pits even though they will run well for a couple of months.
Scams to stay from
Get an automobile history report from CARFAX or another trusted company before buying a car, and make sure you get a mechanic to inspect the car first. Do this whether you are getting at auction or individually.
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