CONSUMER ALERT: Georgia Attorney General Chris Carr reminds citizens to protect themselves from potential price gouging and fraud during repairs and reconstruction. Reporting contacts and additional resources are provided.
Attorney General Chris Carr is warning Georgia residents to beware of potential price gouging and home repair fraud in the wake of Tropical Storm Debby. Consumers purchasing a used car should also be wary of vehicles that may have been damaged by the storm.
“As we continue to pray for everyone affected by Tropical Storm Debby, we want to remind the citizens of Georgia of the important steps they can take to protect themselves from potential scams,” Carr said. “If you are looking for a construction contractor, do your research before spending your hard-earned money. We will not allow scammers to take advantage of families and businesses working to rebuild and recover, and we stand ready to help those who believe they have stumbled upon a scam.”
Price gouging
On August 3, 2024, Governor Brian Kemp declared a state of emergency due to Tropical Depression 4 (Tropical Storm Debby). The price gouging protections for goods and services, including gasoline, diesel fuel, and other petroleum products, are in effect until 11:59 p.m. Thursday, August 15, 2024. For more information on price gouging, visit the Attorney General’s Consumer Protection Division website here.
Home repair fraud
These scammers, often referred to as “storm chasers,” ask homeowners to pay up front for repair work and then disappear without completing the work. In other cases, scammers charge exorbitant prices for tree removal, bill you for unnecessary repairs, or perform substandard work. Sometimes, scammers offer to cover the homeowner’s deductible and persuade them to submit false reports to the insurance company, potentially implicating the homeowner in a case of insurance fraud.
The Attorney General’s Consumer Protection Division offers the following tips to help consumers prevent scams and other fraud after a storm.
- Stay away from contractors who demand payment in full up front, accept only cash payments, or refuse to provide you with a written contract.
- Avoid door-to-door offers for repair work. Instead, ask friends and neighbors for recommendations.
- Be skeptical if a contractor offers to cover your insurance deductible or offers other free incentives, as this may be a sign of a scam. Always talk to your insurance company before ordering any storm-related repairs or inspections.
- Ask contractors for references and check them.
- Check with the Better Business Bureau to see if there are any complaints against the company.
- Make sure the contractor has the necessary licenses and/or memberships:
- Tree removal: Check with the International Society of Arboriculture to see if the person has a valid arborist license.
- Water damage and mold: Hire only local companies that are qualified in mold removal and building restoration. To find local contractors and restorers, contact the Society of Cleaning and Restoration Technicians and the Restoration Industry Association.
- Contractors: General contractors, electricians, plumbers, and heating and air conditioning installers must be licensed with the Georgia Secretary of State. To find a contractor, visit sos.ga.gov. Please note that certain specialty trades, such as roofers, tree removal services, painters, drywall contractors, and repairmen, do not require state licensing.
- Reputable contractors should be able to provide:
- Business License
- General liability insurance
- Employee accident insurance
- Written manufacturer warranties
- Written employment guarantees
- Public claims adjusters must also be licensed to work in Georgia. Call the Insurance Commissioner’s office at 1-800-656-2298 to verify that a public claims adjuster is licensed and that their contract is approved before hiring them to work on your behalf.
For more information on home repair scams and other storm-related scams, visit the Attorney General’s Consumer Protection Division website here.
Flood-damaged vehicles
Vehicles damaged by floods are often sold at auction and then end up in used car lots. Typically, a vehicle damaged by floods will be declared a total loss by the auto insurance company and marked as a “junk vehicle.” However, scammers may try to cover up the damage by using a practice known as “title washing,” which involves taking the vehicle to another state where it is not required to mark the vehicle’s title as damaged and then selling it back in the original state or elsewhere so that the vehicle’s title looks clean. There may be no official proof of the flood or water damage if a car was uninsured at the time of the damage. For these reasons, the car dealer who ultimately sells the vehicle may not always be aware that the vehicle even suffered flood damage.
If a vehicle’s body, engine, transmission or mechanical parts have been submerged in water, electrical problems are likely to occur and the brakes, airbags and computer system may be compromised. Unfortunately, this damage may not be immediately apparent, especially to the average consumer.
To avoid purchasing a flood-damaged vehicle, there are several things you can do:
- Check the vehicle history by going to the National Motor Vehicle Title Information System (NVMTIS). This is the only publicly available database to which all auto insurers, junkyards that auction totaled cars, scrap yards and auto dismantlers in all 50 states are required by federal law to report totaled cars within 30 days. Go to vehiclehistory.bja.ojp.gov, enter the vehicle identification number (VIN) and check to see if the car is marked as “salvage,” “salvage,” “flood,” “rebuilt” or “reconstructed.”
- The National Insurance Crime Bureau also maintains a partial database of hurricane-affected vehicles on its website. You can search by VIN number for free using the website’s VINCheck feature. Note that this information has not been verified for completeness or accuracy. When searching this database or reviewing the vehicle history report, remember that neither is a substitute for a thorough physical inspection.
- Look for signs of flood damage. A musty smell, water stains, or faded fabrics can be a sign of flood damage. A strong detergent smell in the car or engine can be an indication that someone is trying to cover up a mildew smell. Rust and flaking metal are also warning signs. Check the upholstery, dashboard, glove box, trunk, interior doors, engine compartment, and under the seats and carpet for mud or silt. Look under the car for drain holes. Test the ignition, lights, windshield wipers, air conditioning, heater, and all accessories over and over again.
- Most importantly, have the car checked by a trusted mechanic who not associated with the dealer who sells the vehicle. Have this inspection done before You sign a contract or pay money.
For more tips on buying a used car, visit the Attorney General’s Consumer Protection Division website here.
Reporting contacts and other resources
If you believe you have encountered a scam, contact the Attorney General’s Consumer Protection Division at 404-651-8600 or 1-800-869-1123 (toll-free in Georgia). Consumers can also file a complaint online here.
If you believe a roofer or other contractor has committed insurance fraud, file a report with the Insurance Commissioner’s Office here or call 404-656-2070 or 1-800-656-2298.
If you have trouble contacting or receiving a timely response from your insurance company, or if you have questions about your insurance policy, call 1-800-656-2298 or visit the Insurance Commissioner’s website here.
