LANSING — Attorney General Dana Nessel issued a warning to Michigan residents, especially those in the northern part of the state, about scams that inevitably come after major storms. Nessel issued a four-step process for ensuring residents don’t fall for scams.
“Severe weather may be unpredictable, but scammers who try to exploit residents afterwards are not,” said Attorney General Nessel. “By understanding common tactics used by fraudsters, consumers can better protect themselves from those looking to profit unscrupulously from their hardship following extreme winter storms.”
The four steps are below:
- Breathe! Take some time to absorb what has happened, and don’t make any rash decisions before doing your homework. This is especially true if you are approached by anyone telling you they can start but only if you accept their “help” right now. Legitimate contractors understand you need time to do your homework and check them out before you pay them anything or sign any contracts.
- Talk to your homeowner’s insurance agent or company. Carefully review your homeowner’s insurance policy to determine what damage may be covered and the amount of your deductible. Then be sure to contact your homeowner’s insurance agent or company, writing down questions you have and the answers that you are provided, along with a list of whom you talked to and when. Knowing what your insurance will cover will help you to determine how much you are able to spend on repairs, and prioritize repairs based on safety and need.
- Do your homework. Do your homework before hiring a home repair contractor by following the tips found in the remainder of this Consumer Alert. Some of our tips include ensuring that the home repair contractor you’ve decided to hire is licensed, insured, well-regarded by your friends and neighbors, and you are comfortable with their complaint history (if one exists).
- Get everything in writing, never pay in cash, and never pay in full up front. Ensure that all promises, quotes, and expectations are put in writing in a contract that you will carefully review before signing. Paying for a home repair using a credit card is recommended because using credit cards provides you with added protection to dispute a charge if the repair is not completed. Finally, you should never pay for an entire home repair up front! To ensure that all work is completed in accordance with the contract terms and your expectations, arrange to pay for only part of the work up front and pay for the rest of the work once it is complete to your satisfaction.
The Attorney General also warned of scams that involve people masquerading as legitimate utility companies. According to a release from the Attorney General’s office, residents are warned:
If you’re contacted by someone claiming to be with a utility company, take the following steps to verify authenticity:
- Ask for an estimated restoration time. Legitimate utility companies track their own crews and are able to provide customers an idea of when the service will be fixed. If the caller provides an estimate, cross check that with your company’s outage map online.
- If they leave a message, don’t call back. Instead of dialing the number provided by the caller, locate contact information for that company on a recent utility bill and call to confirm if they contacted you in the first place.
- Don’t provide payment information over the phone. Remember, in instances where service is lost, it’s the company’s responsibility to bring it back online. That never includes asking customers for additional payment.
Finally, Nessel and her office urged anyone wishing to file a complaint with the Attorney General, or get additional information, to contact the Consumer Protection Team at the address and phone numbers below:
Consumer Protection Team
P.O. Box 30213
Lansing, MI 48909
517-335-7599
Fax: 517-241-3771
Toll free: 877-765-8388
