Storm Isaac ravaged the Gulf Coast a week ago. Sadly, he was just the start of the hurricane season. Sadly, these catastrophes also bring out a unique breed of rip-off artist that preys the traumatized and financially-strained sufferers of the tragedies.
Wanting devastation to come
The Association of American Retired Persons was able to talk to a spokesman from the Coalition Against Insurance Fraud, James Quiggle. He said:
"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 Agency pointed out that we are seeing more and more of them out there.
Asking for cash
Most of the scamming contractors will leave without doing work, though some of them actually do the work. The only problem is that they do a terrible job and leave permanent damage that will not be covered by homeowner's insurance. It is always a bad sign when the contractor asks for money upfront before they complete the task.
Avoiding construction scams
-- You can get a list of approved contractors near you from the Better Business Bureau or your insurance bureau.
-- Ask to see a contractor's license.
-- Contractors with no business card are probably shady.
-- Deposits should never be more than 25 percent of the total estimated contract, and should not be paid until building materials are delivered to your home.
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."
Automobile frauds
With really bad materials and bad craftsmanship, vehicle fraudsters will put together broken automobiles and sell them to people. They make a huge buck. They get the vehicles after flooding at insurance auctions for a song.
The vehicles break down a lot and turn into money pits even though they will run well for a couple of months.
Avoiding automobile cons
Whether you are purchasing at auction or individually, you should 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 an automobile just to look at its reported history.
Wanting devastation to come
The Association of American Retired Persons was able to talk to a spokesman from the Coalition Against Insurance Fraud, James Quiggle. He said:
"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 Agency pointed out that we are seeing more and more of them out there.
Asking for cash
Most of the scamming contractors will leave without doing work, though some of them actually do the work. The only problem is that they do a terrible job and leave permanent damage that will not be covered by homeowner's insurance. It is always a bad sign when the contractor asks for money upfront before they complete the task.
Avoiding construction scams
-- You can get a list of approved contractors near you from the Better Business Bureau or your insurance bureau.
-- Ask to see a contractor's license.
-- Contractors with no business card are probably shady.
-- Deposits should never be more than 25 percent of the total estimated contract, and should not be paid until building materials are delivered to your home.
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."
Automobile frauds
With really bad materials and bad craftsmanship, vehicle fraudsters will put together broken automobiles and sell them to people. They make a huge buck. They get the vehicles after flooding at insurance auctions for a song.
The vehicles break down a lot and turn into money pits even though they will run well for a couple of months.
Avoiding automobile cons
Whether you are purchasing at auction or individually, you should 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 an automobile just to look at its reported history.
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