Officials urge flood victims to watch out for scammers

Published 12:00 am Thursday, May 6, 2010

As people across the region begin repairing damage from last weekend’s flood, they might be faced with another challenge – avoiding scam artists.

Officials warn against scammers, particularly fraudulent contractors who venture to areas after a natural disaster to trick people out of thousands of dollars.

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“Most contractors are honest, but there are a few that come in on these natural disasters that are not,” said Bob Appling, director of the local contractors licensing board.

Attorney General Jack Conway cautioned people Monday against price-gouging and scam artists. Price-gouging by any businesses will not be tolerated, he said in a news release, and he’s monitoring gas prices after receiving several consumer complaints about increased prices and possible pricing violations.

Regular fuel prices in Bowling Green were around $2.94 per gallon Wednesday, according to an online gas price tracker. If prices soar above $3 per gallon, consumers might consider the possibility of price tampering, said Roger Boyd, spokesman for AAA in Kentucky.

“We’re not seeing $3.50 or $3.75,” he said. “But if you were seeing anything significantly higher than what we’re seeing in Louisville (which was $2.98 per gallon Wednesday), I would be concerned about taking advantage of the prices.”

While there were some cases of gasoline price-gouging after Hurricane Katrina, “historically, I cannot say that’s something we see a lot of,” Boyd said.

However, scam contractors are common after natural disasters.

“We get tons of phone calls after any type of disaster,” said Reanna Smith-Hamblin, spokeswoman for the Better Business Bureau Louisville branch. “The scam artists, they come out of the woodwork.”

Officials are quick to warn people against paying the entire cost of a project up front.

“They’ll come and do the work, but they’ll do a really shoddy job,” Smith-Hamblin said.

People should also look for business signs, business cards or any other type of proof that the business is legitimate. Also, be wary of contractors from out of state – many scam contractors travel from other areas and, even if an out-of-state contractor is valid, it could take too long to fix botched repairs if the contractor has to travel a long way, Smith-Hamblin said.

People should call the local contractors licensing board to make sure a contractor they’re thinking of working with is licensed. More than 2,000 contractors in Bowling Green and Warren County are registered with the local licensing board, Appling said.

“They do need to be warned on this. They really need to be checked out,” he said. “Good local contractors are no higher, in most cases they’re cheaper.”

Homeowners who need flood repairs:

  • Resist dealing with a contractor who asks you to pay for the entire job up front.
  • Deal only with licensed and insured contractors. Call the local contractor licensing board at 781-3530.
  • Get recommendations and check with the Better Business Bureau to see if any complaints have been filed against the contractor.
  • Take your time signing a contract. Get a written estimate that includes any oral promises the contractor made. Get a copy of the final contract before work begins.
  • Be skeptical of contractors who encourage you to spend a lot of money on temporary repairs.

Source: Better Business Bureau

If your vehicle suffered water damage:

  • Check your oil. If it’s too high, water might be in the engine. Call the insurance company and do not start the car. Comprehensive insurance coverage includes losses other than collision, such as flooding.
  • If you have a car loan, notify your lender of the damage.
  • Determine the vehicle’s National Automobile Dealers Association average prior to the damage.
  • Determine how high the floodwater reached on the vehicle. If it reached the midpoint of the tire, there might be severe damage to electrical systems and some experts consider the vehicle a total loss if that area’s flooded.

Source: Kentucky Office of the Attorney General