Western New York: Beware Of Storm Cleanup Scams

ALBANY, NY (08/25/2010)(readMedia)-- The New York State Consumer Protection Board (CPB) and the New York State Office of Emergency Management (NYSOEM) today urged Western New York residents to be wary of anyone who comes to their home offering storm cleanup or repair services. In the wake of recent storms, many New Yorkers were left with significant damage to their property caused by wind, rain and fallen trees or branches. Scammers may target storm victims, especially because homeowners, renters and businesses in Cattaraugus, Allegany, Chautauqua, Erie and Wyoming counties are eligible for low-interest loans issued by the U.S. Small Business Administration (SBA) for costs not covered by insurance.

"The recent storms in Cattaraugus and adjoining counties took a tremendous toll on homes and businesses in the area," said Governor David A. Paterson. "So-called 'storm chasers' often show up after a storm or disaster and seek to take advantage of vulnerable victims of these storms."

"In the aftermath of a disaster, rushing to hire the first contractor you can find - - or hiring the first contractor who finds you - - is a recipe for a rip-off," said CPB Chairperson and Executive Director Mindy A. Bockstein. "Home repair scammers sometimes move in after a disaster because they know there are many desperate people who need immediate assistance. Take the time to make sure you're hiring a legitimate contractor."

Andrew X. Feeney, Director of NYSOEM, said, "Unfortunately, we found in past disasters, there are certain people who are ready to take advantage of the misfortune of others. People who have suffered damage from these storms should be on the alert for phone or door-to-door solicitors who promise they can speed up the insurance or building permit process. They should also beware of people or outfits that ask for large cash deposits or advance payments in full."

On July 24, 2010, severe storms struck Cattaraugus, Allegany, Chautauqua, Erie and Wyoming Counties and caused tornadoes that resulted in damage to homes and businesses. In a survey of the area conducted after the storm, the SBA and NYSOEM found that 26 homes and one business in the surveyed area suffered uninsured losses of 40 percent or more of their estimated pre-disaster fair market value.

The CPB and NYSOEM urge storm victims to exercise caution when hiring a contractor, and to heed the following advice:

  • Do not hire people who show up at your door offering services such as tree or debris removal and roof repair. Legitimate contractors generally don't seek customers in that manner.
  • Don't rush. Resist high-pressure sales tactics such as the "good deal" you'll get only if you hire the contractor on the spot.
  • Deal with a reputable local contractor. Be wary of itinerant contractors who materialize after a disaster, seeking business.
  • Check references and get written estimates.
  • Get a written contract that specifies the price and the work to be done. Never sign a blank contract or one with blank spaces.
  • Ask for proof of insurance.
  • Do not pay for the job in advance. Be wary of any contractor who demands full payment up front.
  • Check credentials. If you live in an area that licenses contractors, such as New York City, Nassau, Suffolk, Westchester, Putnam or Rockland, check with your local consumer protection department to make sure the contractor is licensed. You can also check the contractor's complaint record.
  • Pay by credit card, if possible. You have additional protection if there's a problem.
  • Otherwise, pay by check. Never pay in cash.

For more information on hiring a contractor and home improvements, visit the Home Ownership section of the CPB's website at www.nysconsumer.gov.

The CPB, established in 1970 by the New York State Legislature, is marking its 40th anniversary as the State's top consumer watchdog and think tank. The CPB's core mission is to protect New Yorkers by publicizing unscrupulous and questionable business practices and product recalls; conducting investigations and hearings; enforcing the Do Not Call law; researching issues; developing legislation; creating consumer education programs and materials; responding to individual marketplace complaints by securing voluntary agreements; and, representing the interests of consumers before the Public Service Commission and other State and federal agencies.