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DISASTER OFFICIALS
Always request identification from anyone identifying themselves as a “disaster official” or “disaster worker.” Some con artists pose as government officials and claim that a “processing fee” must be paid to secure disaster relief payments or loans. Others have pretended to be safety inspectors who will tell you expensive or unnecessary repairs must be done immediately.
EMPLOYMENT OPPORTUNITIES
Job listings for post-disaster work (such as flood clean-up or repair work) should also be approached with caution. Job “opportunities” that require you to make an advance fee payment before the job starts are not likely to provide actual employment. Additionally, classified ads asking you to call a 900 number for job referrals may be nothing more than an expensive way for someone to read you classified ad job listings while you are being charged for the call.
HOME REPAIRS
Home repair companies will arrive at disaster sites in response to the high demand for their services resulting from widespread property damage. Often disreputable companies hoping to make easy money are among them. They may require you to pay them before doing the work, do a shoddy job, or add extra costs throughout the job. To avoid being taken advantage of in this way, follow these tips:
DOOR-TO-DOOR SOLICITATIONS
In addition to home repair services, door-to-door solicitors may offer a variety of products for use after the disaster. Some door-to-door solicitors are not legitimate. Remember these tips when someone comes to your door to sell you something:
INSURANCE CLAIMS
If your home, property, or motor vehicles have been damaged, you may want to contact your insurance company to see if the damage is covered under your insurance policy. Your insurer may send an appraiser to inspect the damage, or they may ask that you take photographs to document the damage, obtain repair estimates, and then forward the photographs and repair estimates for review and processing. These practices are standard and legitimate.
If, for any reason, however, you are concerned about your insurance company’s handling or final determination of your claim, you can contact the State Corporation Commission’s Bureau of Insurance (“Bureau”). The Bureau regulates insurance com-panies and responds to complaints from consumers. You can reach the Bureau toll-free at 1-877-310-6560, or you can reach the Life and Health Consumer Services Section at 804-371-9691 or the Property and Casualty Consumer Services Section at 804-371-9185. Information on how to file a complaint can also be obtained at http://www.scc.virginia.gov/division/boi/webpages/boifilecomplaint.htm. If you would like to mail your complaint to the Bureau, you need to fully describe the nature of your complaint and provide photocopies of any relevant documents you may have to: Bureau of Insurance, State Corporation Commission, P.O. Box 1157, Richmond, Virginia 23218.
TELEMARKETING
Emergency situations, and disasters in particular, attract those who engage in telemarketing fraud. Never provide credit card or bank account information over the phone unless you initiated the call and are familiar with the business. Always ask for written information about the product or services being offered. And remember: “If it sounds too good to be true, it probably is.”
CHARITABLE SOLICITATIONS
While there are many legitimate organizations that provide relief to disaster victims, there are those who are willing to collect funds for non-existent charities and pocket the money. Solicitations may come by phone, mail, or in person. Always follow these tips when considering a charitable donation:
ADVANCE FEE LOANS
If you are seeking a loan quickly – perhaps to rebuild your damaged home or business – beware of loan brokers who promise that you are “guaranteed” a loan if you pay an up-front fee. The fee might be small or as much as several thousand dollars. Legitimate lenders rarely, if ever, “guarantee” a loan before evaluating a person’s creditworthiness. While legitimate lenders may require payment of application fees, appraisal fees, or credit report fees, these fees never are required before the lender is identified and the application process is completed.
Be wary of ads that provide a 900 number but do not disclose the cost of the call. Also, beware of promises that a bad credit history will not keep you from getting a loan.
WATER TREATMENT DEVICES
If you are part of a public water system and are concerned about your water, contact your local water utility department about water safety problems and what to do. For questions about private wells, contact your local health department or the nearest regional office of the state health department. Some firms may try to sell you overpriced or unnecessary water treatment devices or offer to test your water for free and then tell you that your water is contaminated when it is not, in order to induce such purchases.
PRICE GOUGING
Unfortunately, some unethical companies and individuals will attempt to take advantage of disaster victims by charging exorbitant prices for products and services that victims have little choice to purchase (such as water, plywood, water pumps, fuels). Consumers are encouraged to comparison shop when possible. Also consider asking a relative or friend outside the disaster area to obtain scarce goods for you.
The Virginia Post-Disaster Anti-Price Gouging Act, which became law on July 1, 2004, prohibits the charging of “unconscionable” prices for “necessary goods and services” within the affected area during the 30 day period following issuance of a declared state of emergency. The basic test under the statute is whether the price charged for goods or services “grossly exceeds” the price charged immediately (within 10 days) before the disaster. “Necessary goods and services” includes those goods or services for which demand does, or is likely to, increase as a result of the disaster.
IDENTITY THEFT
A disaster can result in the loss of your credit cards, bank checks, social security card, and driver’s license. All of those documents contain personal and financial identifying information. To prevent someone from using these documents to open up fraudulent credit card accounts in your name, or otherwise steal your financial identify, it is important to report loss of any of those documents as follows:
You also should alert the three credit bureaus about the loss of your documents. You should request that your account be “flagged” for possible “unauthorized activity” and that you be allowed to attach a “victim’s statement” that explains that your documents were lost in a disaster. The numbers for the credit bureaus are:
If you suspect unauthorized use of any of your personal and financial identification documents, alert the above contacts, and immediately contact your local police.
REPORTING POST-DISASTER FRAUD
You can report disaster and other consumer fraud to the Office of the Attorney General at the following address and telephone numbers:
OFFICE OF THE ATTORNEY GENERAL
Antitrust and Consumer Litigation Section
900 East Main Street
Richmond, Virginia 23219
804-786-2116 (phone)
804-786-0122 (fax)
consumer@oag.state.va.us
The Virginia Attorney General has authority under state and federal consumer protection statutes to investigate and prosecute consumer fraud; in addition, we are happy to help you find the assistance you need, if we cannot provide it.