Missouri Attorney General Andrew Bailey Warns of Scams to Avoid After Disasters

In the event of a natural disaster, Attorney General Bailey offers the following tips to help consumers avoid becoming victims of scams.

Construction Fraud is the most common type of fraud that follows a disaster. To avoid this:

• Get everything in writing. Before work begins, ensure you have a written contract that details all the work to be performed, the cost, and a projected completion date.
• Research the company thoroughly before signing a contract. Be sure to obtain all of their contact information.
• Beware of anyone who looks or acts unprofessionally or offers to save you money by using materials left over from previous jobs.
• Obtain at least two or three bids for any job.
• Check credentials and contact the Attorney General’s Office and the Better Business Bureau to learn about any complaints against the contractor.
• Do not prepay for work, and never pay in cash. Inspect the work and ensure you are satisfied before making a payment. A reasonable down payment may be required for some projects; however, do not pay anything without obtaining a written contract.
• Ensure your insurance company is working with you to provide the correct estimate and coverage under your policy. Be wary of any contractor who comes to your home to solicit work or tries to rush you into a decision. If an offer is only good for a limited time, find someone else to do the work.

Price Gouging is illegal in Missouri. This means that individuals and businesses are prohibited from substantially increasing their prices for essential goods and services during an emergency. These items include food, water, gasoline, hotel rooms, kerosene, gas-powered generators, and other basic necessities.

Anyone who believes a business has suddenly and artificially raised the prices of necessities during emergency situations should contact the Attorney General’s Office. The Office will investigate and prosecute individuals who engage in this practice to the fullest extent of the law.

Charity Fraud is also common following natural disasters. To avoid giving money to a dishonest scammer, consider the following:

• Be cautious of charities that use names closely resembling those of legitimate charities.
• Do not commit over the phone unless you have investigated the legitimacy of the organization.
• Avoid cash donations and make checks payable to the organization, not to an individual.
• When in doubt, call the charity and ask if they are aware of solicitations being made in their name.

For additional information about any of these topics, please contact the Consumer Protection Hotline at 800-392-8222.