Attorney General's News Release

June 20, 2008

Nixon cautions eastern Missourians to watch for scams during flood preparation and recovery

Jefferson City, Mo. - As residents in Missouri towns along the Mississippi River work furiously to protect their communities from flooding, Attorney General Jay Nixon is reminding consumers to watch out for con artists. Nixon says thieves often target hard-hit areas claiming to offer home-repair services. The Attorney General says these scam artists 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.

"Natural disasters always produce heroic acts by ordinary citizens, such as volunteers working around the clock in sandbagging efforts," Nixon said. "Unfortunately, such situations also always produce con artists, people who look to take advantage of the misfortune of others by promising services, collecting payment and not following through on the job."

Nixon also wants consumers to be on the lookout for price gouging on necessary supplies like water, ice, storage units, gas and generators, and to report any instances in which they feel they have been victimized.

"Any time a business raises prices simply to profit from a natural disaster, that is price gouging, and that is illegal in Missouri," Nixon said.

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

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

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 Better Business Bureau or the Attorney General's Web site and Consumer Protection 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.

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 the Consumer Protection Hotline at 1-800-392-8222.

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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