Attorney General's News Release

Oct. 21, 1998

Nixon urges consumers in St. Louis area with summer storm damage to avoid fraud when contracting for repairs

Jefferson City, Mo. — Attorney General Jay Nixon today said residents of St. Louis City and St. Louis County who had property damage from storms in July should beware of scam artists looking to exploit the situation through home repair fraud. A decision by the Federal Emergency Management Agency now makes some home owners there eligible for government loans and other assistance.

"As home owners now start receiving assistance or insurance checks to help with repairs, home repair fraud artists come out of the woodwork, too," Nixon said. "During the floods of 1993 and 1995, we were able to head off potential scam artists by making people aware of the threat they posed. Home owners again need to be cautious and make informed decisions about repairs."

Nixon offered several suggestions to those contracting for home repair or other property work:

• 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 find out about complaints filed against a contractor.
• 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 quickly. Some sellers use high-pressure or scare tactics or 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 home owner 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.
• Don't pay in cash. If you write a check, make it out to the contracting company, not an individual.

Consumers who think they have been victims of fraud can call the Attorney General's Consumer Protection Hotline at 1-800-392-8222.

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