Disasters give rise to scams

By Alison Young

The Atlanta Journal-Constitution

After a tornado ripped the roof off Barb Dunlap’s home in Woodstock last year, it seemed convenient to hire the nice-looking roofer who came through the neighborhood after the storm offering quick repairs.

The company had a local office, Dunlap said, the man seemed legit and his firm was willing to do the repair for the $11,000 her insurance company was paying. In a single day, a crew removed the remaining roof and replaced it with a new one.

But what happened next should serve as a warning to everyone currently dealing with flood damage.

Everything seemed fine at first, Dunlap said. Then, five months later, Dunlap and her husband began to notice water damage in their home’s bedrooms. The brand new roof was leaking — and the roofer had disappeared, leaving the Dunlaps with a worthless warranty.

“I suspect they were storm chasers,” Dunlap said last week as the Atlanta area struggled to recover from its latest disaster of devastating floods. “He was one of dozens of roofers going through our neighborhood. After the storm passed, there were roofers all over the place, like sharks to blood.”

It will cost about $4,000 to fix the problem causing the leaks, Dunlap said she’s been told by other contractors. And that’s just a stop-gap: The shingles were installed improperly and the roof will likely need replacement within five years, she said. All those costs will come out of the Dunlaps’ pockets because it’s not the insurance company’s fault that the couple chose a bad contractor.

In the wake of any disaster, there will be people looking to take advantage, consumer protection experts warn. Here are some of the key risks and what you can do to protect yourself.

The risk: Contracting scams

“Most of the common after-disaster scams we see involve home repairs, cleanup efforts and heating and cooling equipment,” said Fred Elsberry Jr., president of the Better Business Bureau covering metro Atlanta, Athens and northeast Georgia. Scammers can take consumers’ money and do nothing, or do a partial or substandard job. As anxious as flood victims may be to get things back to normal, it’s important to take time to shop around for qualified contractors, Elsberry said. “You find them, don’t let them find you,” he said.

What you can do:

● Hire companies you know: Or at least that your friends and neighbors have done business with for years. Seek out your own references, and find your own contractor.

● Check licenses: Georgia recently began requiring that residential and general contractors have state licenses. To verify a license, go to https://secure.sos.state.ga.us/myverification/ . You can file complaints through this site as well. Certain subcontractors, including electricians, plumbers, landscape architects and HVAC firms, also require licenses. For more information go to www.sos.ga.gov/plb .

Certain contractors, including roofers, painters and brick masons, aren’t required to be licensed because they are considered providers of “specialty services.” For more information, go to www.sos.georgia.gov/plb/contractors/Specialty_contractors.htm .

● Do more checking: Check the company’s history with the Better Business Bureau at www.bbb.org or by calling 404-766-0875. Make sure to complain about problem companies so the BBB has a record of the issue.

● Get a contract: Insist that everything be put in writing, including all the work to be done, the supplies that are included, how the cleanup and any disposal will be handled, start and finish dates, and the payment schedule.

● Never pay everything up front: If you’re asked to pay for materials, Elsberry said, don’t pay until they’re delivered. Or see if you can buy the supplies yourself.

● Beware building permit issues: The person who applies for the permit is responsible for most of the insurance and liability issues on the project, warns the Georgia Secretary of State’s Office. So, if a contractor says you can save money by obtaining your own building permit, watch out.

The risk: Price
gouging

Georgia’s law prohibiting price gouging was activated last week with Gov. Sonny Perdue’s emergency declaration for 17 flood-ravaged counties, said Bill Cloud, a spokesman for the Governor’s Office of Consumer Affairs.

What you can do:

● Shop around and don’t pay outrageous prices.

● Report suspected price gouging to the consumer office by calling 404-651-8600.

The risk: Disaster relief scams

As disaster declarations are issued for counties, residents and business owners there become eligible for disaster assistance from FEMA and the Small Business Administration. Flood victims need to beware of people offering to help collect disaster aid — for a fee.

What you can do:

● Go directly to FEMA: To apply for disaster assistance, go to www.fema.gov or call 1-800-621-3362. People with speech or hearing disabilities can call TTY 1-800-462-7585.

The risk: Charity schemes

When disaster strikes and the need is greatest, expect to see an increase in donation requests from charities, said Elsberry. “There are going to be a lot of charity appeals during this time, and a lot of them are very legitimate,” he said. “But we encourage people to be wary of appeals that are long on emotion and short on what the charity can do.”

What you can do:

● Don’t be pressured: Watch out for door-to-door solicitations. Legitimate charities will be happy to give you written material about their organization that you can study at your leisure.

● Check them out: Places to find charity financial information and ratings include: www.guidestar.org , www.charitynavigator.org , www.charitywatch.org and www.bbb.org .

The risk: Flood-
damaged cars

In the weeks and months ahead, be on the lookout for waterlogged cars being cleaned up and offered for sale.

What you can do:

● Hire a mechanic: Flood-damaged cars can be cleaned up but may have serious problems with corroded wires and chronic mildew. Get an independent mechanic to check out any vehicle you’re thinking about buying.

● Check the title: Look to see if it is marked “salvage.” Consider purchasing a vehicle history report from a commercial service such as Carfax.com .

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How we got this story

The AJC interviewed local, state and national consumer protection experts, including officials from the Governor’s Office of Consumer Affairs, Consumer Federation of America, Better Business Bureau and the Georgia Secretary of State’s Office.

Got a tip?

Do you suspect government waste, a consumer rip-off or a threat to public safety? Tell us what you want investigated. E-mail spotlight@ajc.com or call 404-526-5041.