Many Gulf Coast consumers are finding themselves not only traumatized by the ravages of Hurricane Isaac last week, but are also facing serious financial strain in the aftermath of storm problems. Unfortunately, this can be a situation that a particularity low form of scammer seeks out. These so-called "storm chasers" unscrupulously pick the pockets of people when they are at their most susceptible. And the hurricane season is far from over.
Better with catastrophe
The Coalition Against Insurance Fraud is an alliance of insurance corporations, government agencies and consumer groups. A spokesman for the group, James Quiggle, told the Association of American Retired Persons:
"They're called storm chasers, going town to town where disaster strikes to descend on traumatized homeowners and causing more problems than they fix. And they often prey on senior citizens."
The National Insurance Crime Bureau pointed out that we are seeing more and more of them out there.
Issues happening
There are some scamming contractors who actually do perform repairs, but the repairs are done incorrectly or really badly. Homeowners insurance will not cover repairs done by unauthorized contractors, so you need to really avoid them anyway. You can tell it is a contractor scam if they ask for money upfront to repair damage from the storm. The majority of the time, they leave before they even do any work.
Stay away from cons
-- Before letting any person complete repairs, ask the Better Business Agency or your insurance agent for a list of approved contractors.
-- The contractor should show you a license first.
-- Never let someone work for you if they give you a P.O. box for an address or if they do not have a business card.
-- Never pay the deposit until building materials arrive at your home, and also you should never pay more than 25 percent down for the deposit.
according to the East Baton Rouge Parish Department of Public Works interim director David Guillory:
"You really shouldn't be paying for work that's not done. If somebody says, 'Pay me half and I'm going to go get some other equipment,' or go get another crew or something, that should send a red flag up."
Also seeing vehicle frauds out there
With really bad materials and bad craftsmanship, vehicle fraudsters will put together broken vehicles and sell them to people. They make a massive buck. They get the vehicles after flooding at insurance auctions for a song.
Though these vehicles may run fine for a month or two, generally they will start breaking down regularly, turning them into cash pits that double and triple cost in no time.
Frauds to stay away from
Whether you are purchasing at auction or individually, you need to take your car to a reputable mechanic and get it looked at before making the final purchase. It never hurts to get the CARFAX on a vehicle just to look at its reported history.
Better with catastrophe
The Coalition Against Insurance Fraud is an alliance of insurance corporations, government agencies and consumer groups. A spokesman for the group, James Quiggle, told the Association of American Retired Persons:
"They're called storm chasers, going town to town where disaster strikes to descend on traumatized homeowners and causing more problems than they fix. And they often prey on senior citizens."
The National Insurance Crime Bureau pointed out that we are seeing more and more of them out there.
Issues happening
There are some scamming contractors who actually do perform repairs, but the repairs are done incorrectly or really badly. Homeowners insurance will not cover repairs done by unauthorized contractors, so you need to really avoid them anyway. You can tell it is a contractor scam if they ask for money upfront to repair damage from the storm. The majority of the time, they leave before they even do any work.
Stay away from cons
-- Before letting any person complete repairs, ask the Better Business Agency or your insurance agent for a list of approved contractors.
-- The contractor should show you a license first.
-- Never let someone work for you if they give you a P.O. box for an address or if they do not have a business card.
-- Never pay the deposit until building materials arrive at your home, and also you should never pay more than 25 percent down for the deposit.
according to the East Baton Rouge Parish Department of Public Works interim director David Guillory:
"You really shouldn't be paying for work that's not done. If somebody says, 'Pay me half and I'm going to go get some other equipment,' or go get another crew or something, that should send a red flag up."
Also seeing vehicle frauds out there
With really bad materials and bad craftsmanship, vehicle fraudsters will put together broken vehicles and sell them to people. They make a massive buck. They get the vehicles after flooding at insurance auctions for a song.
Though these vehicles may run fine for a month or two, generally they will start breaking down regularly, turning them into cash pits that double and triple cost in no time.
Frauds to stay away from
Whether you are purchasing at auction or individually, you need to take your car to a reputable mechanic and get it looked at before making the final purchase. It never hurts to get the CARFAX on a vehicle just to look at its reported history.
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