For Release: June 30., 2006
Contact: J. Tucker Martin or David Clementson
Email: jtmartin@oag.state.va.us or dclementson@oag.state.va.us
Phone: 804-786-2071
Attorney General Bob McDonnell Issues Consumer Alert for Flood Victims
***Information for Flood Victims Available Below, and on Website***
http://www.oag.state.va.us/CONSUMER/CONSUMER_FRAUD/Consumer_Disaster.html#HOME
Richmond- Virginia Attorney General Bob McDonnell issued a consumer alert today for Virginians impacted by the recent flooding that struck portions of the Commonwealth. The Attorney General encourages all Virginians to familiarize themselves with some common-sense consumer protection information before making any decisions on home or business repairs.
Attorney General McDonnell noted, “In the wake of this week’s devastating flooding in parts of Virginia, many are now understandably anxious to begin the process of recovery. But before anyone writes a check, or hires a contractor, I encourage them to visit our website at www.vaag.com to make sure they don’t become a victim twice in one week. And if anyone thinks they have fallen victim to fraud, or price-gouging, I encourage them to contact our office and the Office of Consumer Affairs.”* (contact information at bottom of release)
Common Frauds Found in Virginia
HOME REPAIR FRAUD
Disasters often bring a stream of questionable contractors who promise immediate or cheap home repair. Fraudulent home repair companies, as well as the honest ones, will flock to disaster sites – drawn by the demand for repairs and the availability of money. The fraudulent contractors often will want to take money before doing work, do a shoddy job, or add extra costs throughout the job. To avoid being a victim of such scams, follow these tips:
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 out an appraiser to review the damage before you can repair the property, or they may ask that you take photographs to document the damage, obtain appraisals, and then forward the photographs and appraisals for review and processing.
If you are concerned about your insurance company’s handling of your claim, or its final determination on your claim for benefits, you can contact the State Corporation Commission’s Bureau of Insurance ("Bureau"). The Bureau regulates insurance companies and responds to such complaints from consumers. You can reach the Bureau toll-free at (877) 310-6560 or you can reach the Consumer Services Section within the Property and Casualty Market Regulation Division at (804) 371-9185. Information on how to file a complaint with the Bureau can also be obtained at http://www.state.va.us/scc/division/boi/webpages/boifilecomplaint.htm. If you would like to mail your complaint to the Bureau, please 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.
DOOR-TO-DOOR SOLICITATIONS
As damage from the disaster is cleared, you may find solicitors lining up at your door. In addition to home repair services, solicitors may be offering a variety of products for use after the disaster. Beware of these door-to-door solicitors since they simply may be seeking to separate you from your money. Door-to-door solicitors often are only in town long enough to make a few fast dollars. Remember these tips when someone comes to your door to sell you something:
TELEMARKETING SCAMS
Fraudulent telemarketing schemes often follow disasters. You can protect yourself by simply guarding against doing business over the telephone, especially with businesses or people you do not know. Never give 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. And remember: "If it sounds too good to be true, it probably is."
CHARITY SCAMS
While there are many legitimate organizations that provide relief to disaster victims, con artists will move in to collect funds for non-existent charities and then pocket the money. Solicitations may come by phone, mail, or in person. Always follow these tips when considering a charitable donation:
ADVANCE FEE LOAN SCAMS
If you need a loan fast – perhaps to rebuild your damaged home or business – beware of fraudulent loan brokers who may promise that you are "guaranteed" a loan if you pay an up-front fee. The fee might seem small or be as much as several thousand dollars. You may never get the loan or see the up-front money you gave them again. 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 is completed.
Be wary of ads that give a 900 number but do not reveal the cost of the call. Also watch out for promises that a bad credit history will not keep you from getting a loan.
WATER TREATMENT DEVICES
Fraudulent firms may try to sell you overpriced or useless water treatment devices. One scam involves offering to test your water for free and then falsely claiming that your water is contaminated. 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.
FAKE DISASTER OFFICIALS
Never let a "disaster official" or "disaster worker" into your home without first asking for the person’s identification and checking it out. Some con artists pose as government officials and claim that a "processing fee" must be paid to secure disaster relief payments or loans. Other con artists pretend to be safety inspectors and require that expensive or unnecessary repairs be done immediately.
EMPLOYMENT OPPORTUNITIES
Beware of job listings for post-disaster work (such as flood clean-up or repair work) that sound too good to be true. Watch out for job "opportunities" that require you to make an advance fee payment before the job starts. Work may never be produced. 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.
The Virginia Post-Disaster Price-Gouging Act
PRICE GOUGING
Unfortunately, some unethical companies and individuals will attempt to take advantage of disaster victims by charging exorbitant prices for products or 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 the 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 those documents to open up fraudulent credit card accounts in your name, or otherwise steal your financial identity, it is important to report any loss of those documents. You can report the loss of such 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, you should alert the above contacts, and you should immediately contact your local police.
Who to Contact
You can report disaster scams, price gouging or other consumer fraud to the Office of the Attorney General and the Office of Consumer Affairs at the following addresses 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 and misrepresentation. If an action is brought, the Attorney General can seek injunctive relief to halt fraudulent or deceptive conduct in Virginia and restitution for injured consumers.
OFFICE OF CONSUMER AFFAIRS
102 Governor Street
Richmond, Virginia 23219
804-786-2042 or 1-800-552-9963
804-225-2666 (fax)
http://www.vdacs.state.va.us/index.html
The Office of Consumer Affairs of the Virginia Department of Agriculture and Consumer Services mediates and attempts to facilitate resolutions of individual consumer complaints made against companies doing business in Virginia. If it has reason to believe a pattern or practice of deception or other wrongdoing may exist in violation of any of our consumer protection statutes, the Office of Consumer Affairs has authority to investigate and, where appropriate, to refer its findings to the Attorney General’s Office and/or other agencies for a possible law enforcement action.
