Kansas Consumer Alert: Preventing Scams in Disaster Areas

June 16, 2008 -- Kansas Attorney General Steve Six today warned Kansans to be wary as they begin the clean-up and rebuilding process following the recent severe weather that damaged Kansas communities.

"The rebuilding efforts following the recent storms demonstrate the courage and strength of Kansans," Six said. "Still, some unscrupulous individuals may see our tragedy as an opportunity to scam or con Kansas consumers."

Six encourages everyone in storm ravaged areas to be aware that some businesses may come to Kansas with the intention to help themselves, not our communities.

Six reminds businesses from out of state hoping to assist Kansas communities in the rebuilding process that they are required to have a Transient Merchant's License. He also reminds businesses that the Attorney General's Office will be paying close attention to all complaints of price gouging.

"My office will be watching the situation in the Chapman and Manhattan areas very carefully and will do everything we can to protect consumers and prevent price gouging," Six said.

Tips to Avoid Door-to-Door Merchants or Scams:

Unfortunately, media coverage of a disaster area often brings fraudulent salesmen and other con artists to a community. As you begin the cleanup process, watch out for these signs of potential scams:

* Out-of-state vehicle tags. It is best to deal only with local, reputable businesses. When hiring a contractor from out-of-state, ask to see their Transient Merchant's License. If a merchant with out-of-state tags is unwilling to show this, do not do business with them.
* Magnetic signs on the side of work vehicles. Temporary signs like these usually contain no permanent business address, often listing only a cellular phone number. Use caution with these businesses. They may be hard to locate once your job is finished.
* Unverified physical address. A reputable business will list their physical address on business cards, quotes and any other paperwork you receive. Use caution with companies who only list a P.O. Box or phone number.
* Work vehicles that have seen little work. Vehicles that look rarely used are a clue to be wary. Successful con artists can keep their trucks nice and new because they never come through with the work they are hired to do.
* Estimates that seem "too good to be true." Scam artists often quote low, only to inflate the price once the bill is tendered. Be wary of estimates that only take into account square footage or other size estimates. Reputable contractors will provide solid estimates containing the amount of materials to be used.
* Uninvited solicitations. Con men are notorious for soliciting jobs door-to-door by stating that they have left over materials that allow them to do the job for half the price. When you hear such a line, realize you are probably dealing with a transient merchant and will likely regret the "deal" after it is done.

Tips to Keep in Mind After a Disaster Hits:

* Offers to remove debris may only remove your money. Be wary of offers to remove debris upon the receipt of a cash deposit. Scam artists often unload the debris only a short distance away. Their actions may result in you being responsible for illegal dumping
* Do not pay by cash or money order. Established businesses will welcome payment by credit card or personal check. These forms of payment are your proof should a dispute arise.
* Do not hire anyone before speaking with your insurance adjuster. Your insurance company is your first line of defense against scam artists. Try to work out repairs and receive recommendations from your insurance adjuster after filing your claim. The Kansas Insurance Commissioner is available to assist policyholders with insurance disputes and may be reached at (800) 432-2484.
* Be suspicious of offers to assist in the filing of insurance. Scam artists may use this line to gain access to your Social Security number and other personal information. Obtaining this information allows them to file illegal claims against your homeowner's insurance and commit other forms of identity theft.
* You may be eligible for FEMA assistance. The Federal Emergency Management Agency may provide you with services free of charge, or at a reduced rate. The Kansas Division of Emergency Management may be contacted at (785) 274-1409 or www.accesskansas.org/kdem/
* Notify your local law enforcement and the Kansas Attorney General's Office. If you suspect that scam artists are working in your area, try to obtain tag numbers, make and model of vehicles, as well as the names and telephone numbers of individuals involved. Contact information of victims, contracts or promotional materials may also prove helpful.

Source: Kansas Attorney General

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