Local News

Madigan Warns Residents Of Flood-Related Scams

CHICAGO (STNG) ― State Attorney General Lisa Madigan Monday urged residents of communities impacted by flooding to protect themselves from home repair con artists eager to exploit natural disasters for personal profit.

Home repair scam artists are known to swoop in after storms or floods to take advantage of people with flood-damaged property scrambling to make repairs, a release Monday from Madigan's office warned.

Madigan urged consumers to alert both her office and local law enforcement if suspicious storm chasers begin soliciting in the area. She also warned consumers and business owners to take extra caution before contracting to have damaged or destroyed property repaired or rebuilt and not to rush in to contractual agreements or make large down payments.

"Far too often, we see man-made disasters follow natural disasters. Scam artists know how to take advantage of the aftermath of major storms and persuade people to make snap decisions for repairing their homes or businesses," Madigan said.

Madigan urged residents to call the Attorney General's Consumer Fraud Hotline to check out a contractor and to find out how many consumer complaints, if any, have been filed against a particular business.

Residents should be wary of contractors who go door-to-door to offer repair services, she noted. Home repair con artists are often transients who move quickly into a troubled area. Those affected by flooding should ask for recommendations from people they know and trust and, whenever possible, use established local contractors.

The Illinois Home Repair and Remodeling Act requires contractors to furnish customers with written contracts for any repair or remodeling work costing more than $1,000, the release said. A contract must be signed by both the customer and the contractor.

The law also requires contractors to carry at least minimum amounts of insurance for property damage, bodily injury and improper home repair. Contractors also must provide consumers with an informational pamphlet entitled "Home Repair: Know Your Consumer Rights."

Madigan also said that some scam artists even attempt to impersonate government agencies. In recent years, media reports have indicated that consumers were called by someone who falsely claimed to be associated with the Federal Emergency Management Agency (FEMA) and requested bank account information from the consumer that would assist with the repair of their storm-damaged home.

"Consumers should never give out personal or financial information over the telephone," Madigan said.

(Source: Sun-Times News Group Wire © Chicago Sun-Times 2008. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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