GCM Staff Report
As Hurricane Isaias makes its way toward the Gulf Coast, the Better Business Bureau of Central and South Alabama is warning residents to be on the lookout for scammers who may try to take advantage of storm preparations and recovery efforts.
Severe weather often attracts scammers looking to profit from people dealing with storm damage, including storm chasers offering quick repairs, people posing as FEMA representatives and fake charities seeking donations. Gov. Kay Ivey declared a state of emergency for 40 Alabama counties ahead of the storm, putting Alabama's price gouging law into effect.
“After a storm, everyone wants their home or office back to normal as fast as possible, and scammers know it,” said Evey Owen, vice president at the BBB of Central and South Alabama. “Slow down and research anyone before you hire them. Get everything in writing and make sure you read the fine print before you sign.”
What are the red flags of disaster-related scams?
- Someone shows up at your door offering repairs you did not ask for
- Pressure to hire on the spot to lock in a “good deal”
- Prices or timelines that seem too good to be true
- Demands for full payment or a very large deposit before work begins
- No identification or business name
How can residents avoid post-storm scams?
- Research before hiring. Look up contractors at www.BBB.org, ask for local references and make sure they are licensed to work in Alabama and insured.
- Get it in writing. Get multiple estimates that include a full description of the work and materials along with a breakdown of labor and supply costs. Be wary of bids that are significantly lower than the rest, which may signal substandard materials or work.
- Read the fine print. Some repair contracts include an Assignment of Benefits, which gives the contractor rights to an insurance claim and allows them to collect payment without the homeowner's involvement. Read every document before signing and pay the contractor directly based on an invoice.
- Never pay in full up front. Pay in installments and make the final payment only when the work is complete. Avoid paying in cash. Paying with a credit card can provide additional fraud protection.
Other scams to watch for include:
- Know how to spot a FEMA imposter. FEMA and SBA representatives never charge for disaster assistance, inspections or help filling out applications and they carry official photo identification. Anyone who promises a disaster grant in return for payment does not represent FEMA.
- Check a charity before giving. Before donating to relief efforts, verify charities at Give.org. Do not click links in emails or text messages that claim to come from a relief organization. Instead, go directly to the charity's own website.
- Report price gouging. Under Alabama law, a price 25% or more above the average price charged in the same area within the previous 30 days is considered unconscionable unless the increase can be attributed to a reasonable cost. Suspected price gouging can be reported to the Alabama Attorney General's Office at (800) 392-5658.
Residents should slow down, stay aware and watch for red flags as the storm approaches and during the recovery period. Suspected scams or fraudulent activity can be reported to a local sheriff and to www.BBB.org/ScamTracker.
