AG: How to Protect Yourself from Gustav Scams

From Attorney General Jim Hood, verbatim: Jackson, MS-As Hurricane Gustav wraps its sweep across portions of Mississippi, Attorney General Jim Hood reminds residents impacted by the storm to protect themselves from the scammers that every storm brings.

“Unfortunately, con artists prey on people who are down on their luck,” said Attorney General Jim Hood. “That’s why it pays to arm yourself with the knowledge of their scams and learn how to protect yourself up front.”

A copy of the Attorney General’s “Consumer Tips for Storm Victims” is being distributed by the Mississippi Emergency Management Agency to shelters in the state. Also, investigators and staff with the Consumer Protection Division of the Attorney General’s Office will be distributing copies as they look into claims of price gouging and home repair fraud.

“We will maintain a strong presence in the areas most impacted by Gustav particularly in hopes of deterring unscrupulous contractors,” said Attorney General Hood. “While we have received numerous and widespread reports of price gouging, we have not yet been able to confirm any violations. However, we will continue to investigate these reports and there will be no mercy for any one caught trying to take advantage of Mississippians in this time of need.”

PRICE GOUGING
One of the largest immediate concerns for evacuees has been price gouging, according to phone calls in to the Attorney General’s Office. Price gouging is when someone charges exorbitant and unjustified prices for products or services that disaster victims have little choice but to buy, such as gas, water and generators.

“In a state of emergency, businesses cannot increase their profit margins and they may raise their prices ONLY to cover increased costs,” said Attorney General Hood. “They must be able to justify that any rise in price is a direct result of increased cost in providing the product to the public.”

HOME REPAIR FRAUD
Cases of Home Repair Fraud follow natural disasters. Homeowners repairing damage are looking for reputable contractors so demand is higher than usual. Here are some tips to avoid being taken advantage of:
* Always get your contract in writing.
* Get at least two estimates.
* Ask for references and actually talk to those customers.
* Ask to see state or local permits and licenses.
* Don't give contractors money up front.
* Contact the Mississippi Board of Contractors to verify if the contractor is licensed.
* Buy materials yourself, if possible. It can also help save costs.
* Get receipts for all repair payments, including those paid in cash.
* If you are writing a check, make it out to the name of the company rather than a worker.
* If you are suspicious, do not hire the worker, sign a contract or provide money.
* Get as much information as possible and report your concerns to your local law enforcement agency or the Attorney General's Consumer Protection division at 601-359-4230 or 1-800-281-4418.


“These types of cases take a while to manifest after a storm,” said Attorney General Hood. “It can be a long tedious process for the victim so it really pays to be a smart consumer. Get everything in writing, take photos of your contractor and their vehicle and vehicle tag. A legitimate contractor isn’t going to be bothered by such actions.”

More tips and a “model contract” can be found in “Consumer Tips for Storm Victims” which can be downloaded at http://www.agjimhood.com.

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Jan Schaefer
Public Information Officer
Office of the Attorney General
State of Mississippi
601-359-2002 (office)