Udall Warns Consumers to Beware of Scams in Wake of Tragic Flooding

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WASHINGTON, D.C. – September 18, 2013 – (RealEstateRama) — Mark Udall, who has fought to strengthen federal consumer-protection laws, warned Coloradans to beware of consumer scams in the wake of the ongoing tragic flooding. Udall said consumers should be especially wary of home-repair scams, insurance fraud and charity scams, which are all likely to surface after this natural disaster.

“The tragic flooding that has damaged or destroyed more than 19,000 homes and left scores of our friends, relatives and neighbors homeless has brought out the very best in Coloradans. Unfortunately, natural disasters like this also provide scam artists and criminals an opening to defraud disaster victims,” Udall said. “I urge all Coloradans to be extra cautious during these times and to do their due diligence before contracting for home repairs or donating to charities.”

  • Home Repair Fraud
    Scammers often show up shortly after a natural disaster or extreme weather event, going door-to-door and pitching a “special” or discounted price to fix a roof or perform handyman services. They often demand payment upfront and either skip town before any work is done or do shoddy work. Some home-repair scammers will steal from homeowners while “inspecting” the home for purposes of an estimate.
  • Insurance Fraud
    Common insurance fraud scams involve independent, “public” adjustors who will show up following a natural disaster, travel door-to-door, and offer to inspect and make insurance claims on behalf of consumers. These scammers will either charge an exorbitant fee or refer repair work to handymen for a kickback. Most insurance companies employ their own adjustors. Colorado law also allows homeowners to hire their own independent adjustors to evaluate damages and help consumers file insurance claims.
  • Charitable Giving Fraud
    Consumers should be wary of any purportedly charitable organization that solicits them through door-to-door outreach, uses aggressive telephone calls, cannot answer basic questions about charity — such as how much of each dollar goes to the victims — or are not registered with the Colorado Secretary of State’s Office. Consumers can also check out charities through the Better Business Bureau at www.give.org or www.checkthecharity.com.

Consumers who believe they may have fallen victim to one of these scams, or who have encountered an organization or person trying to defraud Coloradans, should contact the Colorado Attorney General’s office at 1-800-222-4444 or www.coloradoattorneygeneral.gov/complaint.

For people interested in helping those who are suffering as a result of flooding, the State of Colorado has pooled resources for assisting those in need at www.HelpColoradoNow.org.

Udall has fought to ensure Coloradans have the information they need to recognize consumer fraud and fight back. Earlier this year he partnered with Attorney General John Suthers to warn consumers about tax-preparation fraud, a common scam where tax preparers change return documents to increase the return amounts and steal the refunds.

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