Attorney General's News Release

July 5, 2007

Nixon urges western Missourians to watch for scams during flood preparation and recovery

Jefferson City, Mo. — As residents in western Missouri brace for more flooding, Attorney General Jay Nixon says to watch out for con artists. Nixon says thieves known as “storm chasers” target hard-hit areas claiming to offer home-repair services. He says storm chasers often go door-to-door, offering quick services for consumers who may be in urgent need of repairs and supplies, whether it's a new roof, windows, generators or other services.

“While the weather in Missouri is unpredictable, storm chasers are quite predictable,” Nixon said. “Consumers need to know there are people out there who want to take advantage of their misfortune by promising services, collecting money and not following through on the job.”

Nixon also wants consumers to report price gouging on necessary supplies like water, ice, storage units, gas and generators. “Any time a business raises prices simply to profit from a natural disaster, that's price gouging, and it's illegal in Missouri,” Nixon said.

When hiring contractors, Nixon says consumers should be suspicious of anyone who:

• Offers services door-to-door;
• Drives an unmarked vehicle or has out-of-state plates;
• Demands full payment in advance;
• Has no address, just a phone or P.O. Box;
• Uses a high-pressure sales technique; or
• Has no I.D.

Nixon says consumers should follow these suggestions when hiring a home-repair company:

• Hire known or recommended companies. Check for complaints against a company through the Kansas City-area Better Business Bureau or the Attorney General's Web site and Consumer Complaint Hotline (number below);
• Check the credentials of companies: verify their numbers and addresses in the phone book, check for county or other local permits, and ask if they are licensed, bonded and insured;
• Get at least two estimates.
• Get all agreements in writing, including description of the job, completion dates and price; and
• Make full payment only when the terms of the contract are met.

If a home repair contractor doesn't offer a written agreement, the Attorney General encourages consumers to write their own agreement. Nixon's Web site offers a worksheet with guidelines for drawing up a home improvement contract.

Nixon's office has already received more than 700 consumer complaints on home repair in 2007. His office has also taken numerous legal actions against consumers for price gouging during the ice storms of January 2007. Consumers can report fraud and price gouging by filing a complaint online with the Attorney General's Consumer Protection Division at ago.mo.gov or by calling 1-800-392-8222.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818