AG Strange warns against fraud and price gouging under State of Emergency

fayette damage

MONTGOMERY, Ala. (WIAT) — Whether it’s a tornado, a hurricane, or floods, natural disasters often bring out the best, and the worst, in people. The biggest issue often seen is price gouging. Alabama’s Attorney General says, he won’t stand for it.

Luther Strange is pledging to protect the people of Alabama. Because we are under a state of emergency, the state’s price gouging law is in effect. Strange wants storm victims to pay particular attention to potential home repair fraud.

As Alabamians begin to rebuild, home repair fraud becomes a real, persistent, and serious problem. A first offense of home repair fraud is a class A misdemeanor, punishable by up to one year imprisonment and fines of up to $6,000 for each count. Subsequent offenses are a class C felony, punishable by one to 10 years imprisonment and fines of up to $15,000 for each count.

Attorney General Strange cautions consumers to be wary and to take the following precautions when hiring someone to make repairs:

• Find out as much as you can about the workers, especially if they make unsolicited contact with you or have come from out-of-town after a natural disaster.

• Contact the Attorney General’s Office and the Better Business Bureau to see if any complaints have been filed against the contractor.

• Ask for proof that they are bonded or insured.

• Ask if they are licensed.  Regulations vary, but plumbers and electricians must be tested to be licensed by the state.  Contractors may be required to have local licenses if they do major work, but those who do small odd jobs may not have to be licensed.   You may check with the Alabama Home Builders Licensure Board to see if a contractor is licensed by calling 1-800-304-0853, or by visiting http://www.hblb.alabama.gov.

• Ask if this particular job requires a permit.  Most construction and home repairs of major significance require a permit from the county or city.  Do not let them talk you into applying for the permit in your name.  If they do not want to be known to local officials, they may be hiding a bad reputation.

• Obtain several written estimates.  Beware of estimates that are well below the market price or seem “too good to be true”.

• Ask for references.  Get names and addresses, and call them.

• Have the contractor prepare a written contract.  Make sure it includes the contractor’s full name, address, and telephone number; a description of the work to be performed; starting and estimated completion dates; and the total cost.

• NEVER make a full payment up front and do not make final payment until you are satisfied and all subcontractors have been paid.   If they tell you more money is needed in advance, be wary.  They should be able to pay for supplies or have credit to make necessary purchases until you compensate them afterward.

• Make sure you can contact them.  Be wary if they can only give you a pager number, a cell phone number, or a post office box address.  Businesses with established addresses may be safer.

Attorney General Strange urges consumers and officials to report any problems of alleged fraud or illegal price gouging to his Office of Consumer Protection by calling toll-free 1-800-392-5658, by writing to 501 Washington Avenue, Montgomery, Alabama, 36130, or though the Attorney General’s main web page at www.ago.alabama.gov.

Copyright 2014 WIAT-CBS42

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