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Consumer
Advisories
Alert:
Consumer Scams After the Flood
It's the
definition of "adding insult to injury" -- con-artists
trying to cheat flood victims. Traveling "scam-artists"
sometimes migrate to flood areas because there's a high demand
for repairs and clean-up, money may be available from disaster
payments or insurance, and people may let their guard down
in their hurry to recover from the flood.
Fraudulent
contractors usually go door-to-door. They may give you a hard
sell and offer low prices or quick work, and they almost always
insist that you pay in advance - but then they fail to do
the work, or do minimal work and disappear. Remember, legitimate
contractors very rarely solicit door-to-door. Be skeptical!
The main rules are to check out a contractor, and never to
pay large sums in advance to a contractor you don't know.
The best advice: deal with an established and reputable local
contractor.
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these tips to protect yourself if you hire a contractor: |
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Check
out the contractor before you sign a contract or pay any
money. Ask if the contractor is registered with the Labor
Services Division (800-562-4692, ext.25871). Check local
references. Ask the Attorney General's Consumer Protection
Division if it has complaints (515-281-5926.)
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Get
it in writing! Get several written estimates for the job
you want done. Before any work begins, agree on a written
contract detailing work to be done, responsibility for permits,
costs, and any other promises. Request a copy of the contractor's
liability insurance certificate. Put start and completion
dates in writing and consequences if the contractor fails
to follow them (example: the contract could be nullified
if the contractor doesn't start on time.)
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Try
to avoid paying large sums in advance to a contractor you
don't know! If you have to make a partial advance payment
for materials, make your check out to the supplier and the
contractor. Insist on a "mechanic's lien waiver"
in case the contractor fails to pay others for materials
or labor.
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Iowa
also has a rule prohibiting price gouging when a county
has been declared a disaster area. Remember, in most cases,
Iowa's Door-to-Door Sales law gives you three business days
to cancel a contract signed at your home.
Go to
www.FEMA.Gov
or call 800-480-2520 for the Federal Emergency Management
Agency's booklet on "Repairing Your Flooded Home"
or other information.
For more
information or to file a complaint, contact the Attorney General's
Consumer Protection Division, Des Moines, Iowa 50319. Call
515-281-5926.
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