Consumer Issues

Sadly, there are people who try to take advantage of others after disasters. A few of the most common scams include imposter scams, home repair scams, and charity scams. This page offers information that can help you avoid common scams or give you possible action options if you have already become involved in one.

What is price gouging?

“Price gouging” happens when a supplier raises their prices on necessities after a disaster occurs. In many states price gouging is illegal. Oklahoma does have a statute prohibiting price gouging. It is called the Emergency Price Stabilization Act. This act makes it illegal to increase the price of goods and services by more than 10 percent after a declaration of emergency. The Act is in effect for 30 days after the declared emergency and in effect for another 180 days for prices for remodeling, restoring, and construction.  

If you suspect that price gouging has happened and want the Attorney General’s Consumer Protection Unit to investigate, you should file a complaint with the Consumer Protection Unit at: (405) 521-2029 or by email at consumerprotection@oag.ok.gov. Be Cautious about the Following Scams: 

Appliances

After a disaster, it is important to think about replacing appliances that may have been damaged for safety reasons. Damaged appliances can cause fires, explosions, or electrical shock. If your appliance technician says that you need to replace an expensive or major appliance, you should ask for their opinion, what materials would be used, and replacement cost in writing and discuss this with your insurance adjuster before committing to anything. It wouldn’t hurt to get a second opinion. Do not pay for anything upfront or if the work is not completed. 

Automobiles

If your car was submerged in water to the point that rising water has reached over the floorboard, entered the passenger compartment, and caused damage to any electrical, computerized, or mechanical components, call your insurance company and have it checked out by a car dealer or repair shop.  

Sometimes car dealers try to sell cars that have been damaged after a flood. If you’re buying a used vehicle, inspect it carefully. Look at hidden parts or crevices to check for mud or silt, which indicates water damage. Many vehicles that have been completely submerged by floodwaters have been deemed as totaled by the insurance companies. You should obtain a vehicle history report when searching for another vehicle.  

Before you buy a used car, get the Vehicle Identification Number (VIN) to do a title search for the current owner’s name and address, purchase date, purchase price, sales tax, if owner is a car dealer, and odometer reading. The National Insurance Crime Bureau (NICB) has a database for salvaged vehicles you can check if you have the VIN:  

VINCheck® Lookup | National Insurance Crime Bureau (nicb.org)

Choosing a Contractor

Home repair scams are common after disasters. Check with the Better Business Bureau before choosing a contractor and get recommendations from friends, relatives, neighbors, coworkers, insurance agents, or claims adjusters.  

See whether the company is local. Does it have a track record with references in the area? Ask the contractor if you can see their previous work. Ask for the names and phone numbers of their previous clients and if they would be willing to talk with you. If they give you the client list, ask the previous client if they are satisfied with the work, if the contractor did what he or she promised to do, and if they would hire the contractor again. Also check the company vehicle to see if it displays the company name, address, and phone number.  Find out if the contractor has worker’s compensation and liability insurance.  Get at least two bids in writing to compare the costs but know that lower costs do not always mean a better deal and higher costs doesn’t mean better quality. Look at the contractor’s business license and keep the number.  Check to see if the contractor is licensed in Oklahoma. You can do this by going online at cib.ok.gov. 

Contracts

Before signing any contract, make sure the contract is a detailed written contract that specifies the following: 

1. A list of all materials that will be used in terms of quality, quantity, color, size and/or brand name should be included. 

• A payment schedule should also be established. On home remodeling projects, you should expect to make a down payment representing approximately one-third of the total contract price. Excluding the down payment, you should not make payment for any incomplete work. All these terms should be spelled out in the contract and clearly understood by both you and the remodeler/builder. 

• The contract with your builder or remodeler should state that the work is to be performed in accordance with all applicable building codes and zoning regulations. If you are remodeling, check with the Building & Safety Dept. to find out what permits are needed to proceed with your project. 

• Do not sign a partial or blank contract! Read each clause carefully and ask any questions you may have before signing. Then, retain a copy of the contract as soon as you sign and file it in your records. 

• Any warranty (including terms, conditions, and oral promises) offered by the contractor should be in writing in a language you can understand. You should read it carefully. Make sure the written contract includes: the contractor’s full name, address, telephone number, and proof of Workers Comp and liability insurance. 

Be skeptical if anyone comes to you regarding work that they believe needs to be done at your home.  

Be on the lookout for typical warning signs of a possible scam: 

1. The “contractor” uses high-pressure sales tactics like “special deals.” 

2. A small repair quickly turns out to be a big repair. 

3. The contractor demands money before any services are done or before the work is completed. 

You should call the Oklahoma Attorney General’s Office if you suspect a scam is occurring or if you are a victim of a scam.  

Paying for Repair Work 

There are plenty of home repair scams after disasters. If someone offers to do any type of yard work, debris removal, or work around your home, never pay them up front. Never pay in cash. Typically, once these scam artists get your money, you will never see them again. 

Instead of paying your contractor with your insurance check or cash, have your bank create a Certificate of Completion. This way, the bank will pay your contractor in installments for work completed after your approval.  

FEMA offers a Disaster Housing Program that helps homeowners who have been forced out of their homes by disasters. Disaster Home Repair Assistance is a part of this program. It provides grants for minor disaster-related repairs. Contact the FEMA Disaster Helpline at 1-800-621-FEMA.  

If you suspect a repair scam, call the Oklahoma Attorney General’s Consumer Protection Unit at 405-521-2029. If you suspect fraud, waste, or abuse involving FEMA disaster assistance programs, report it to Dept. of Homeland Security’s Inspector General’s Office at 1-800-323-8603.  

Storm Chasers 

Unfortunately, disasters attract scam artists who take advantage of those who need help rebuilding or repairing. Storm chasers are out-of-town contractors that travel to places hit by disasters to provide home repair services. These contractors may not be licensed or may do poor quality work. The Better Business Bureau suggests that storm victims  

• Get the company’s complete name, address, and phone number. Be skeptical of any vague or hesitant answers, or no offers of contracts, brochures, or anything in writing. Beware of high-pressure sales tactics. A reputable company will be happy to let you check them out first. 
• Make sure your contractor has all the appropriate permits for the work they are doing and verify that the company has liability and worker’s comp insurance. If a contractor cannot provide proof, beware. If possible, verify that the insurance is active by contacting the contractor’s insurance company directly.  
• If it is an out-of-town or out-of-state company, ask how any warranty issues or problems will be addressed after the work is done and the company is gone. 
• Ask for references from previous jobs and check them out before signing the contract. 
• Before work starts, have a signed, written contract including start and completion dates, exact costs, specific work to be done, and warranty information. Read any fine print carefully and understand all terms before signing. 
• Get at least 3-4 quotes from contractors and insist that payments be made to the company, not an individual. 
• If you have damage, check with your homeowner’s insurance to have an adjuster sent to determine if and how much they will cover to repair or replace damaged property. 
• Be highly suspicious of a contractor that asks you to pay for the entire job upfront. He may take your money and never return. 

Debris Removal 

Debris removal scams are common after disasters. If anyone approaches you about removing debris be skeptical. Here are some tips provided by the Federal Trade Commission: 

• Check with local officials to find out whether tree and debris removal contractors need to be licensed in your area. If so, confirm that the license for the contractor you are considering is current. Never sign any document or pay any contractor before verifying their license. 
• Call Oklahoma Consumer Protection Unit at 405-521-2029. 
• Ask a contractor to provide their license and certificate of insurance once they are on your property. If a contractor tells you certain work is covered by your insurance, call your provider to confirm. 
• Get a written estimate and sign a written contract that includes a description of the work to be performed, what materials are included, when the work will be finished, the price, and the address and phone number of the contractor. Read all agreements carefully before you sign. Make sure all blanks in a bid or contract are filled in. Speak with your neighbors about what they are paying for similar work. 
• Pay with a credit card or check and be wary of contractors who ask for a deposit in cash or to be paid in cash. Negotiate a reasonable down payment with full payment to be made only upon satisfactory completion of work. 
• Trust your gut. If you have any doubts about hiring someone or entering a contract, take your business elsewhere. 

Door-to-Door Sales (Cooling off rule) 

Sometimes door-to-door salesmen come after disasters. If: 

1. A door-to-door salesperson comes to your home or a place that is not the salesperson’s permanent place of business (even if you invite them); and  
2. You buy something from them for more than $25  

Then, according to the Federal Trade Commission, you can cancel your purchase and get a full refund if you sign and date one copy of the cancellation form and mail the form to the designated address before midnight of the third business day after the contract date. 

Salespeople are required to tell you about your right to cancel and they must provide you with two copies of a cancellation form. However, there are some exceptions.  

The Cooling-Off Rule does not cover sales: 

• Under $25 
• Of goods or services not primarily intended for personal, family, or household purposes  (The rule applies to courses of instruction or training)
• Made entirely by mail or telephone 
• Resulting from prior negotiations made by you at the seller’s permanent business location where the goods are regularly sold 
• Needed to meet an emergency such as the sudden appearance of insects in your home, and you write and sign an explanation waiving your right to cancel 
• Made as part of your request for the seller to do repairs or maintenance on your personal property (purchases made beyond the maintenance or repair request are covered) 
• Involving real estate, insurance, or securities 
• Involving the sale of automobiles, vans, trucks, or other motor vehicles sold at temporary locations, if the seller has at least one permanent place of business 
• Involving arts or crafts sold at fairs or locations such as shopping malls, civic centers, and schools. 

If the salesperson is not following the Cooling-Off-Rule, you can contact the Federal Trade Commission by phone at 1-877-382-4357, TTY: 1-866-653-4261 or online at www.ftc.gov 

Fake Disaster Officials 

Some scam artists pretend to be NEMA, FEMA, or other governmental agency personnel like the US Small Business Administration (SBA). Please note that FEMA or SBA shirts or other gear are not proof that someone is with a particular agency or organization. Make sure if anyone is claiming to be with a particular agency that they have a laminated photo identification card on their person. Employees of these agencies are required to always have their photo identification card. If you are suspicious, ask to see their photo identification card.  

Guarding Against Identity Theft in the Aftermath of a Disaster  

To receive relief benefits or to replace important government documentation after a disaster, it is necessary to provide your personal information. However, you must be extremely cautious when doing so because scam artists can pretend to be government representatives to get access to your personal information. If you are approached by a person stating they are a government representative, ask for their identification. The best way to avoid scam artists is to contact the government agency you need to get relief benefits from or replace important documentation yourself. 

Take care with your Social Security number. Scam artists will try to get it from you. If you mistakenly give your personal information to a scam artist, if your wallet or purse was stolen, or if you want to better prepare yourself against identify theft: 

1. Call the credit card companies and notify them that your card was stolen.
2. Place a fraud alert and get your credit report by calling: 
   • Equifax: 800-525-6285 
   • Experian: 888-397-3742  
   • TransUnion: 800-680-7289  
3. Report identify theft to the Federal Trade Commission. 
4. Close new accounts opened in your name. 
5. Remove bogus charges from your accounts. 
6. Correct your credit report; and 
7. Consider adding an extended fraud alert or credit freeze. 

For more detailed information regarding these steps, visit www.identitytheft.gov. In addition, visit www.consumer.ftc.gov/features/feature-0014-identity-theft or call 1-877-IDTHEFT for more information on how to respond or protect your personal information. 

If you have a fraud alert on your credit report, Oklahoma has a Fair Credit Reporting Act that requires creditors to ask for proof of identification before any credit can be taken out in your name. A fraud alert lasts 90 days. If you want to have an extended fraud alert, which lasts 7 years, you will need to file a complaint with your local police department and send a copy of your police report to the credit reporting agencies listed above.  

If you must leave your home for a while, it may be a good idea to place a hold on your mail.  You can place a hold on your mail free of charge by: 

• Visiting holdmail.usps.com/holdmail 
• Completing a hold form at your local post office 
• Calling 1-800–ASK-USPS (1-800-275-8777). 

Flood Restoration  

It is possible that you can restore many of your possessions. However, you must be extremely careful. After a flood, the foundation of your home may have been weakened, there may be electrical system shortages, and water may have left harmful residue that could make you sick. If you are not sure about a possession, it is better to throw it away rather than risk getting sick. 

You don’t have to do this alone. There are professionals that can do this for you. If the flood was declared a federal disaster, then check to see if there is a hotline that can give you information about any agency programs that are servicing the area.  

For more detailed information on this topic, see: American Red Cross, “Repairing Your Flooded Home” at https://keansburgnj.gov/PDF/Red-Cross-Repairing-a-Flooded-Home.pdf. 

While you are restoring your home, you should consider flood-proofing your home to prepare for the next flood that may happen. You should get flood insurance as well. 

Job Scams  

Scam artists target disaster victims who need jobs. They advertise in typical places where legitimate employers advertise; however, they require you to pay them before you are hired to hold your spot, for training materials, or for some sort of certification. Another way they scam those looking for work is by asking for their credit card or bank account information to pay for things. Scam artists also try to take peoples’ money by posing as job placement services that promise services in exchange for up-front fees. Make sure to check out the legitimacy of anyone offering you a job or of a job placing service. You should look them up at Better Business Bureau or the Oklahoma Attorney General’s Office. 

Pest Control  

When disasters happen, you may have to deal with pests. Before hiring any company, you should:  

• Be wary of exterminators who show up uninvited and offer a free inspection. They may use scare tactics to pressure you into authorizing immediate and costly treatments.  
• Deal with a qualified and licensed pest management company.  
• Ask friends and neighbors to recommend pest control companies they have used successfully and how satisfied they were with the service. You can do this online through a community bulletin board or neighborhood listserv.  
• Get bids from several companies. Ask about their training and their approach to controlling pests.  
• Be wary of choosing a company based on price alone. Quality is the most important factor. 
• Before you sign a contract, get details on the extent of the infestation, the proposed work plan, and the number of visits required and anticipated to solve the problem. A reputable company will inspect your property before quoting you a price or beginning any pesticide application. The company also should give you a written inspection report, and a plan for preparing for treatment and preventing further infestation. 
• Find out if the pest control company has liability insurance to cover any damage that occurs to your home or furnishings during treatment.  
• If you get a written “guarantee,” look for what it covers, how long it lasts, what you must do to keep it in force and what is required for continuing control, prevention, and management.  
• Read the EPA’s Citizen’s Guide to Pest Control and Pesticide Safety, which offers more tips on how to choose a pest control company. 

Rental Listing Scams  

Scammers can use rental listings to take advantage of disaster victims. Scammers promise to find people housing if they pay money upfront either by wiring money or by paying a security deposit or first month’s rent before you have signed a lease. If you are given a contact, make sure to read it carefully. You can report scams to local law enforcement or to the Federal Trade Commission at www.ftccomplaintassistant.gov. 

Utility Related Scams  

Some scam artists pretend to be utility workers after a disaster. For example, they may offer to fix your service during power outage if you pay them up front, but they never fix your power. Ask for identification before you let anyone in. In fact, it is better if you don’t let anyone in your home who you do not have an appointment with. Do not pay any utility or service provider in cash. You should also be skeptical of any special promotions that come from multiple providers because competitors do not advertise together. 

Water Treatment or Purification Devices  

After a disaster you should check with your local water-utility office to learn about your water’s condition before using it. Do not drink any tap water unless local authorities say it is safe. After a disaster, scam artists often try to sell water treatment devices and offer “free” home water tests which turn out to be sales promotions. In-home testing cannot give you an accurate reflection of your water condition. In addition, be skeptical of any claims of government approval of water tests or water treatment products. If you see a product that has an EPA registration number on it, that only means the product has been registered with the EPA. However, just because it has been registered does not mean that it has been approved by the EPA. 

Charity Scams

 Some “charities” are scams. Instead of using their donations for what they say they will be used for, scam artists keep the money for themselves. Here are some warning signs to be on the lookout for: 

1. Requests for donations due to people needing help urgently 
2. A charity name you have never heard of before 
3. Go to www.give.org to find out if the charity exists 
   • Get a number to call to see if it is real 
   • Ask for a brochure to be sent to you by mail. 
4. A charity that cannot send you a brochure, donor form, or that does not have a website 
5. Door-to-door solicitors that accept donations made out to them personally 
6. If the only way you can donate is by giving cash to the solicitor 
7. If you are asked over the phone to provide your confidential information (i.e., credit card number or bank account number) 

Victims of Scams  

If you or someone you know are a victim of one of the above scams, contact the Oklahoma Attorney General’s Consumer Protection Unit at 405-521-2029, or you can file a complaint with the FTC at www.ftccomplaintassistant.gov.