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Hurricane Warning: AARP Urges Caution When Dealing With Contractors After Storm

AUSTIN, Texas, Sept. 11 /PRNewswire-USNewswire/ -- With Hurricane Ike set on a collision course with the Texas Gulf Coast, AARP Texas today urged homeowners affected by the storm to be cautious of unscrupulous individuals or businesses that may attempt to take advantage of their situation in the aftermath of a possible disaster.

"Natural disasters are magnets for con artists, predatory lenders, and shoddy work," said AARP Texas State Director Bob Jackson. "Many unscrupulous contractors are on the hunt for easy money. But you can protect yourself and your family and refuse to become a victim."

AARP has developed an online brochure called "Putting Things Back Together!" available at www.aarp.org/tx. Excerpts are included below.

Many Texans may be faced with decisions related to basic subsistence, major home repairs or reconstruction. As a result, those affected will need to contact local and state authorities, relief agencies or repair services as telephones and power are being fully restored. Following are some important numbers to keep handy, followed by questions to ask before proceeding with repair work.

    Important Numbers
    Texas State Information Center                                        211

    FEMA (Federal Emergency Management Agency)          1-800-621-FEMA (3362)
    Registration and Housing Assistance

    Texas Workforce Commission                                 1-800-939-6631
    File for Unemployment Insurance (UI) or Disaster Unemployment Assistance (DUA)

    Texas Residential Construction Commission           1-877-651-TRCC (8722)
    For checking contractor's registration

    Texas Attorney General's Office of Consumer Protection     1-800-621-0508
    To report general consumer problems

    Texas Attorney General's Office                            1-800-252-8011
    To report price gouging

    FEMA's Hurricane Relief Fraud Hotline                      1-866-720-5721
    To report fraud against the government

    American Red Cross                              1-800-REDCROSS (733-2767)

Where Do I Make Claims?

-- Report your loss and file claims: If your home or property is damaged or destroyed, contact your insurance company and report your damage or loss. If your policy or claim information was lost or destroyed, call the Texas Department of Insurance at 1-800-252-3439.

-- Apply for FEMA disaster relief: Contact the Federal Emergency Management Agency (FEMA) if your home was damaged or destroyed. Call 1-800-621-3362 to apply for housing assistance.

-- Find emergency centers: Government and community organizations are located in emergency centers in each county. Call the Texas State Information Center at 211 to find the center closest to you.

-- Employment and unemployment claims: If you lost your job due to a disaster, you may apply for Disaster Unemployment Assistance (DUA) or Unemployment Insurance (UI) with the Texas Workforce Commission at 1-800-939-6631.

-- FEMA application and inspection: There are no fees for this service.

-- Keep records: Keep track of contacts and dates related to claims, inspections, names, etc.

What Needs To Be Done?

--You are very anxious to get your life back to normal as quickly as possible. Don't take actions too quickly. You may regret them later.

-- Write a detailed description of the work you want done, including the quality of materials, brand names and model numbers you want to be used.

What If I Need to Borrow Money For The Job?

-- If you need to finance the work to be done, know how much you can afford to borrow and repay. Make a budget and stick to it.

-- Be cautious of financing offered by the contractor. Dishonest mortgage brokers and contractors often work together to take advantage of homeowners.

-- Get several estimates for the financing, apart from the contractor's estimate.

-- Ask a lawyer or housing counselor to explain all the terms of the financing agreement.

How Do I Find A Reliable Contractor?

-- Try to get recommendations from friends, family and neighbors.

-- Check with local consumer protection office or Better Business Bureau to see if there are any complaints against the contractor. But remember, even if there have been no complaints filed, that is not a guarantee of reliability.

-- Have the contractor prove that he is licensed and bonded, and has insurance. Check the information with the Texas Residential Construction Commission at 1-877-651-8722.

-- Get two or three written estimates that give details about the work to be done, materials, labor charges, and start and finish dates.

-- Remember: A clear and detailed contract can protect you if something goes wrong. In general, a contract should spell out who does what, where, when and for how much.

-- Whether it is the purchase of services, materials or goods, read all contracts carefully! Wait until the job is completed before you make the final payment.

-- Keep track of all estimates, contracts, repairs and dates of work completed.

-- Do not pay cash up front. Do not make the final payment until the work is done to your satisfaction.

How Do I Protect Myself From Crime and Scams?

-- ID theft: Watch out for any effort to obtain your personal information such as bank account numbers, PIN numbers, credit card numbers, and Social Security numbers. Criminals can use your personal information to access your accounts and much more. When giving personal information, make sure you initiated the contact or call.

-- Door-to-door or telephone solicitations: Be highly suspicious of any individuals going door to door or calling with fund raising efforts, home repair scams, phony inspections, etc. Almost all of these unsolicited efforts are highly suspect. Representatives of real companies or organizations will always show identification and no cash is required.

-- Price gouging: It's against the law to take advantage of consumers during a disaster or disaster recovery period. If you suspect price gouging has happened, call theTexas Attorney General's office at 1-800-252-8011.

-- Advance fee loan scams: Beware of loan brokers who guarantee you a loan if you first pay a fee.

What Are My Rights?

-- You can cancel the home repair contract by sending a letter within three business days, if the contract was signed in your home or somewhere other than the contractor's permanent place of business.

-- You can cancel the financing by sending a letter within three business days -- and maybe even later -- if your home is used as security for the loan.

-- Report fraudulent activity: If you think your contractor or lender is committing fraud, notify the police, the local consumer protection agency, theTexas Attorney General, and state or city office of banking.

-- Contact a lawyer. You may be able to pursue legal action under state or federal regulations.

AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, published bimonthly; AARP Bulletin, our monthly newspaper; AARP Segunda Juventud, our bimonthly magazine in Spanish and English; NRTA Live & Learn, our quarterly newsletter for 50 + educators; and our website, www.aarp.org.

SOURCE AARP Texas