After Hurricane Isaias, the Better Business Bureau of Central and South Alabama is warning residents to watch for scammers trying to cash in on recovery efforts.
Evey Owen, vice president of the BBB of Central and South Alabama, warned people affected by the storm in a Thursday statement to vet contractors before hiring them and ensure they sign comprehensive project contracts.
“After a storm, everyone wants their home or office back to normal as fast as possible, and scammers know it,” Owen said. “Slow down and research anyone before you hire them. Get everything in writing and make sure you read the fine print before you sign.”
The BBB highlighted potential red flags of disaster-related scams, including contractors offering repairs customers didn’t ask for, contractors pressuring people to hire them on the spot to lock in a “good deal,” project prices or timelines that seem too good to be true, demands for full payment or a very large deposit before work begins, and contractors with no ID or business name.
The BBB urged Alabamians to look up contractors on BBB.org, ensure they are licensed to work in the state and ask for local references before hiring. The organization also recommended getting multiple estimates and requesting a written breakdown of project, material and labor costs.
“Get it in writing,” the BBB wrote. “Be wary of bids that are significantly lower than the rest, which may signal substandard materials or work.”
Some repair contracts include an assignment of benefits, which gives the contractor rights to your insurance claim and lets them collect payment without your involvement. Read every document before you sign, and pay the contractor directly based on an invoice.
“Read the fine print and never pay for a project in full upfront,” the BBB wrote.
“Some repair contracts include an Assignment of Benefits, which gives the contractor rights to your insurance claim and lets them collect payment without your involvement,” the organization added. “Read every document before you sign, and pay the contractor directly based on an invoice.”
Other tips the BBB shared to avoid post-hurricane scams include:
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Know how to spot a FEMA impostor. Federal Emergency Management Agency and Small Business Administration representatives never charge for disaster assistance, inspections or help filling out applications, and they carry official photo ID. Anyone who promises a disaster grant in return for payment does not represent FEMA.
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Check a charity before you give. Before donating to relief efforts, verify charities at Give.org. Don’t click links in emails or text messages that claim to come from a relief organization—go to the charity’s own website instead.
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Report price gouging. Under Alabama law, a price 25 percent or more above the average price charged in the same area within the last 30 days is considered unconscionable unless the increase can be attributed to a reasonable cost. Report it to the Alabama Attorney General’s Office at 1-800-392-5658.
The BBB urged Alabamians to report scams or fraudulent activity to their local sheriff and the BBB Scam Tracker.
Governor Kay Ivey declared a state of emergency for 40 Alabama counties ahead of the storm, meaning Alabama’s price-gouging law is in effect until October 14.
The law takes effect when the governor declares a state of emergency and prohibits the “unconscionable pricing” of items for sale or rent.
The penalty is a fine of up to $1,000 per violation, and those found to have willfully and continuously violated the law may be prohibited from doing business in Alabama.
On Friday, Alabama Attorney General Steve Marshall urged Alabamians experiencing price gouging following Isaias to file complaints with his office.
“Alabamians should be on the lookout for exorbitant price hikes on emergency-related items, as well as repair and clean-up services, as Hurricane Isaias makes a path through Alabama,” Marshall said.
Alabamians may file complaints online on the attorney general’s consumer complaint page.
