March 31, 2009

Consumer Advisory: Attorney General Corbett cautions Central PA storm victims about scams

HARRISBURG - Attorney General Tom Corbett urged consumers to be watchful for possible scams as they work to repair damage that was done by a fast-moving weekend storm that passed through York, Lancaster and other Central Pennsylvania counties.

"Storm-damaged areas are often a magnet for scam artists and con-men, looking to take advantage of victims," Corbett said.  "Consumers across the region should be watchful for scams and report any suspicious activity."

Corbett said that the most common topics for consumer complaints following disasters are home repair schemes, government loan or grant schemes and fraudulent disaster-related fundraising efforts.
 
"Home repair schemes can include shoddy contractors, who take money but never do any work; phony inspectors, who are actually salesmen looking to sell expensive products or services; or bogus insurance adjusters, who may try to convince you to inflate claims, direct you toward questionable contractors or convince you that they will take care of 'all the paperwork' while redirecting claims payments to themselves," Corbett said.

Corbett encouraged consumers to consider the following "warning signs" for disaster-related scams and fraud:

Contractor issues -

• Unsolicited door-to-door sales pitches.
• Requests for large up-front payments.
• No written estimates or contracts.
• Offers to perform work using "left over" or "discount" materials from other jobs.
• High-pressure sales pitches.

Consumers should check with your Better Business Bureau for a history of complaints against a particular business and check with the Attorney General's office for a history of lawsuits or other legal actions.

Loan or government grant schemes -

• Requests for up-front payments for loan applications or to search for grants.

Relief agencies and government assistance programs do not ask for pre-payment by disaster victims.  Contact relief agencies and local governments directly to get a list of available disaster-relief programs (Check with the local chapter of the Red Cross, U.S. Small Business Administration, and local emergency management officials for more information).

Disaster relief fundraising scams -

• Be wary of high-pressure tactics and door-to-door collections.
• Ask for details about any charity before you make a donation (legitimate charities will always explain their programs and services).
• Check to see if a charity is registered in PA before making a contribution (charity registration info is available on the PA Department of State website at www.dos.state.pa.us).
• Ask for info about how funds will be spent (legitimate charities will tell you what percentage of your gift will go toward community services, operating expenses or fundraising).
• Write checks directly to the charity, rather than giving cash.

Other consumer issues -

• Disasters can wipe out financial records, including credit card and utility bills, bank statements, and other vital information - keep spare copies in a safe location.
• Call your bank, credit card, utilities and other businesses that send you bills, and notify them of the problem.
• Get a free copy of your credit report, which will list all your major accounts and creditors at www.annualcreditreport.com.
• Ask for duplicate bills or a delayed payment plan (ask for a delay before you are late on any payments).
• Contact your insurance company as soon as possible, to identify what losses are covered.
• Call the PA Insurance Department or the AG's Bureau of Consumer Protection if you have problems getting a response from your insurance company.
• Consider getting advice from a non-profit financial counseling service to plan your best response to added expenses and/or financial losses related to the disaster.

Consumers with questions or problems related to disaster-recovery scams can contact the Attorney General's Consumer Protection Hotline at 1-800-441-2555 or file an online complaint at www.attorneygeneral.gov.

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