Attorney General's News Release

May 23, 1995

Nixon urges flood victims to use caution, avoid fraud

Jefferson City, Mo. — Attorney General Jay Nixon today said consumers should beware of scam artists looking to exploit flood victims. To prevent unscrupulous people and fraudulent businesses from taking advantage of Missourians, Nixon's office has prepared a free booklet, Advice & Tips for Flood Victims, that warns consumers about common scams and offers tips on how to repair the damage to their property.

“Unfortunately, disaster-related fraud is common,” Nixon said. “During the flood of 1993, we were able to cut off potential scam artists by making people aware of the threat they posed. Consumers again need to be cautious when spending their money and make informed decisions about repairs.”

The Flood Victim booklet includes information about home repair fraud, car repairs and purchases, charitable solicitations, insurance help, door-to-door sales and actions consumers can take if they think they have been defrauded.

Several suggestions for home repair from Advice & Tips for Flood Victims include:

• Never let anyone into your home without first asking for identification and use reliable, licensed contractors. Check with the Attorney General's Office, Better Business Bureau or the local trades council to make sure a company has no complaints filed against it.
• Request a contract. A complete contract will list the work to be completed and costs. Don't sign a blank or incomplete contract. Make sure the agreement states who will apply for the necessary permits or licenses.
• Don't get pushed into making a decision today. Some sellers use high-pressure or scare tactics and sometimes misrepresent the quality and value of their products or services. If the offer is good for only today, then look elsewhere.
• Get proof of insurance. Make sure a contractor carries general liability insurance and workers' compensation. If the contractor is uninsured, a homeowner may be liable if an accident occurs on the property or a structure is damaged.
• Get guarantees in writing. Ask for a written guarantee stating who is responsible for equipment and materials.
• Avoid paying in cash. If you write a check, make it out to the contracting company, not an individual.

Consumers who would like to receive a copy of Advice & Tips for Flood Victims or feel they have been victims of fraud can call the Attorney General's Consumer Protection Hotline at 1-800-392-8222. Hearing- or speech-impaired persons can use the TDD line at 1-800-729-8668.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818