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NEWARK
– Governor Chris Christie, Attorney
General Paula T. Dow, and the New Jersey
Division of Consumer Affairs today warned
consumers to watch for home repair scams
and charity scams during the post-Hurricane
Irene recovery period.
“It
is an unfortunate fact that disasters attract
their share of con artists and frauds, from
fly-by-night home improvement contractors,
to fake charities that do nothing but line
their own pockets,” Governor Christie
said. “New Jersey consumers recovering
from flood and wind damage should look at
every sales pitch and charity solicitation
with a critical eye. Disaster recovery is
enough of an ordeal, without the added outrage
of being scammed.”
Governor
Christie, Attorney General Dow, and Thomas
R. Calcagni, Director of the Division of
Consumer Affairs, noted that dishonest home
improvement contractors have been known
to prey on individuals seeking to repair
their homes after severe flooding incidents.
Offering low prices and speedy work, they
may leave consumers with poor or half-finished
work, and homes that remain unsafe.
Fraudulent
charities also solicit donations in the
wake of disasters. At least one such apparent
fraud began after the March 2011 tsunami
and nuclear disaster that affected Japan.
Misusing the name of a respected charitable
organization, the alleged scammer sent out
emails asking consumers to send donations
of no less than $300, via Western Union
to a location in the Philippines.
“Bad
home improvement contractors can leave homeowners
with costs in the tens of thousands of dollars.
Fake charities capitalize on compassion,
to steal money that should go to worthy
causes,” Attorney General Dow said.
“Just as we are investigating allegations
of illegal price-gouging, we will investigate
any and every complaint about con artists,
should they attempt to capitalize on the
hardships caused by Hurricane Irene. We
urge consumers to take the first step of
being careful and protecting themselves.”
Dow
and Calcagni urged consumers to call the
Division of Consumer Affairs hotline, 800-242-5846,
if they suspect fraud or to learn whether
a contractor or purported charity is registered
with the state.
“Con
artists thrive in situations when stress
levels are high, and consumers feel they
must act quickly without taking a close
look at who it is they’re doing business
with,” Director Calcagni said. “Consumers
should know there is always time to step
back and learn about the person who is asking
you for money – whether it’s
a contractor you just met, or a charity
calling on the phone. The Division of Consumer
Affairs can help you determine whether the
person, business, or organization is legitimate.”
Information on Home
Repair Scams:
The
Division’s information packet, “Tips
For Flood Victims: How to Avoid Disaster-Related
Scams,” available at www.NJConsumeraffairs.com/press/floodvictims.pdf
(and available in Spanish at www.NJConsumerAffairs.com/press/SPfloodvictims.pdf),
includes the following tips, among others:
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Demand identification before you let anyone
who claims to be from a utility company
inspect your home.
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Never give your credit card number or
financial information to strangers over
the phone or on the Internet.
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Learn whether the contractor is properly
registered with the Division of Consumer
Affairs. Call the Division at 800-242-5846,
or use the free “New Jersey Professional
License Lookup” iPhone app, available
by visiting www.NJConsumerAffairs.com.
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Call the Division of Consumer Affairs
to learn whether the contractor has been
the subject of consumer complaints. You
can also check the Division’s online
listing of legal filings, at www.NJConsumerAffairs.com/ocp/filings.htm,
to learn whetherthe iness has been the
subject of legal action by the Division.
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Demand a copy of the contractor’s
liability insurance policy, and contact
the insurer to make sure the policy is
valid.
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It is customary not to pay for the entire
home improvement project in advance. Pay
one-third beforehand, one-third halfway
through, and one-third upon completion.
Information
on Charity Scams:
The
Division’s Consumer Brief on “Charitable
Giving,” available at www.NJConsumerAffairs.com/brief/charity.pdf
(and in Spanish at www.NJConsumerAffairs.com/espanol/spbrief/charity.pdf),
offers the following tips:
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Before donating to a charity, find out
whether the charity is registered to solicit
funds in New Jersey, or is exempt from
registration (certain religious and educational
organizations, and charities who raise
less than $10,000 annually in contributions,
are exempt).
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Find out how, exactly the charity plans
to use your money. Learn how much the
charity spent during recent fiscal years
on program costs, management costs, and
fundraising. Learn about the charity's
stated mission.
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The charity should readily provide all
of this information to you. Verify the
information by calling the Division of
Consumer Affairs' Charities Registration
Hotline at 973-504-6215,
or the Charities Registration page at
www.NJConsumerAffairs.gov.
Information
on Auto Repair:
Consumers whose cars were damaged by the
floods or fallen debris, should:
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Check out auto repair shops by calling
Consumer Affairs' Consumer Service Center
and asking about any past actions and/or
consumer complaints.
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Get a cost estimate in writing and be
sure to remind the mechanic to get your
authorization before making repairs not
listed on the original repair order. Auto
repair shops are required by law to do
so.
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If you believe the mechanic has recommended
unnecessary work or you are dissatisfied
with the estimate, get a second opinion.
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If the work is guaranteed, get all the
warranty information in writing on the
repair order or bill.
Consumers
who believe they have been cheated or scammed
by a business, or suspect any other form
of consumer abuse, can file a complaint
with the State Division of Consumer Affairs
by visiting its website, www.NJConsumerAffairs.com,
or by calling 1-800-242-5846
(toll free within New Jersey) or 973-504-6200.
Follow
the Division of Consumer Affairs on Facebook,
at www.facebook.com/pages/NJ-Division-of-Consumer-Affairs/112957465445651.
Check
our online calendar of upcoming Consumer
Outreach events, at www.nj.gov/oag/ca/outreach/.
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