Texas Attorney General Abbott Urges Central Texas Residents to Beware of Scams in Aftermath of Flooding

Contractor, charity ploys are common in the aftermath of a storm

June 27, 2007 -- AUSTIN – Texas Attorney General Greg Abbott today warned Central Texas residents to be wary of fraudulent attempts to bilk flood victims in the aftermath of recent storms.

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“Texans will not tolerate anyone who attempts to illegally profit from a disaster,” Attorney General Abbott said. “The Office of the Attorney General will aggressively prosecute anyone who attempts to exploit consumers in the wake of these storms. We will keep Central Texas residents in our thoughts and prayers as we vigorously monitor this situation.”

As emergency response officials begin to gather reports of damaged homes and structures, Attorney General Abbott urged homeowners and businesses to exercise caution when seeking contractors to help with repairs. Abbott offered the following consumer tips:

Home repairs. Be wary of contractors who show up unexpectedly and offer roofing, drywall and other major repairs, particularly those who are not from the local community and low-ball their offer saying that they have material left over from a previous job and insist on an advance cash payment.

Obtain bids in writing from several contractors first and review each one carefully. Ask contractors if they are covered through insurance or a bond, particularly when considering them for a large project. Check with the city to make sure electricians and plumbers have the necessary license and have obtained the required permits.

Get all terms in writing and do not sign a contract without a full understanding of its contents. Do not sign a contract that has spaces left blank. Pay the contractor only as the work progresses, and do not sign a completion certificate until all repairs are done properly. If the work is substantial, consider having an independent inspector look it over before settling the bill with the contractor.

Before hiring a contractor, contact the Better Business Bureau and the Office of the Attorney General to determine whether consumers have filed complaints against the contractor in the past.

Charity scams. Be wary of telemarketers, solicitations by mail, or those who show up unexpectedly urging an immediate donation to an unfamiliar charity which supposedly will aid victims of the disaster. A legitimate charity will offer detailed information in writing about how donated money will be used and will provide a reasonable timeframe within which the donor can make an informed decision.

Be particularly suspicious of solicitors who are long on emotion but short on detail about how donations will be put to use. Always make the donation using a check or money order made out to the charity, and be wary of organizations with names that are very similar but not identical to those of a recognized charity.

Additional information to help consumers protect themselves against these and other disaster-related scams is available on the Attorney General’s Web site at www.oag.state.tx.us, or by calling (800) 252-8011. Information is available in English and Spanish.

Source: Texas Attorney General