HOW TO AVOID POST-DISASTER SCAMS.
Natural and man-made disasters can strike at any time, in any
place.
Hikingware.com is
your complete survival food supply company, dealing in only the top-rated and proven
emergency supplies that you'll need to weather any disaster.
But after any disaster, there are those who seek to profit from
the confusion and breakdown of infrastructure with scams.
Here is a look at some of those scams to beware of, and how to
avoid them:
Home Repair Fraud.
Home repair scam artists are known to swoop in after storms,
floods or other natural disasters to take advantage of people who are
scrambling to make repairs. The homeowner should take extra caution before
contracting to have damaged or destroyed property repaired or rebuilt. The
homeowner should not succumb to pressure tactics.
Be wary of door-to-door solicitors because many home repair con
artists are transients who move quickly into a troubled area. Ask for
recommendations from people you know and trust. Whenever possible, use
established local contractors.
Always ask for references. It is a warning sign when a company
fails to provide references when requested.
Never pay in cash, or make a down payment in cash.
Contractors and roofers need to be licensed by the state they
are operating in. Make sure you ask to see their license(s) before agreeing to
anything in writing.
Phoney phone calls.
After a disaster you may receive a phone call soliciting
personal financial information in order to become eligible for aid. Some
callers even claim to be from FEMA. Never, under any circumstance, give out
information about your bank accounts, debit cards or credit cards. FEMA is not
interested in any of that; and neither is any other legitimate
emergency/disaster agency.
Charitable donation scams.
After disasters, con artists often pose as charitable
organizations to solicit contributions. If you wish to contribute, be wary of
the following red flags:
The charity uses a name that sounds like a better-known,
reputable organization.
The solicitor cannot or will not answer basic questions about
the charity.
The organization uses high-pressure tactics to obtain a
donation.
The solicitor insists on payment in cash.
The representative of the organization asks to pick up your
donation as opposed to allowing you to mail it.
Always check to see if the charity is registered with your
state's Attorney General's Office.
Refinancing scams.
Because of the increased costs of confronting an emergency,
consumers frequently fall behind in their credit payments or overextend
themselves to the point that they must choose whether to pay creditors or
obtain basic necessities such as food. Such consumers are often approached by
finance companies promising to consolidate the homeowner’s debt for existing
mortgage, credit card debt, car loans and repair loans. They then pressure the
homeowner to sign multiple agreements without sufficient time to review them or
consult with anyone. The negative outcomes of such refinancing schemes include
high processing fees, payments to bogus or phantom creditors and loan defaults.
The homeowner often cannot pay both the refinancing costs and basic living
expenses, resulting in a situation far worse than before the refinancing.
Lower income and minority borrowers, as well as elderly
homeowners, are usually targeted by predatory lenders. They encourage borrowers
to lie about their income in order to get a loan; knowingly lend the borrower
more money than he/she can repay; charge unnecessary fees; pressure borrowers
into high-risk loans and use high- pressure tactics to sell home improvements
and then finance them at higher interest rates. These predators pounce on
desperate people in order to line their pockets.
The
best way to avoid all of the above scams, and any others after an emergency, is
simple: Think twice and never sign anything or commit to anything until you've
had a chance to sleep on it and consult a trusted family member or friend.