ARKANSAS, USA — While many in our community are coming together and helping one another pick up the pieces after the May 26 tornados, sadly, there are some people who will try to take advantage of those in the recovery process. Arkansas Attorney General Tim Griffin released a statement on Monday following the storms to warn the public of post-storm scams.
Many of our neighbors are having to worry about so many things right now. Whether it's when they will have electricity again, where they will live temporarily, or how to remove a fallen tree. Unfortunately, some people will take advantage of those situations.
“My prayers continue for everyone affected by this weekend's storms, especially those who lost loved ones. Arkansans always show kindness and compassion to others when storms strike our state. Yet there are unscrupulous people who will try to take advantage of our neighbors in their desperate time of need," Griffin said.
Benton County Prosecuting Attorney Josh Robinson said those carrying out these scams will be prosecuted.
"We've heard of some people that are taking advantage," he said. "If you're going to be out victimizing community members at a time like this, we will prosecute you. No matter what crime it is, we will prosecute it and we will hold you accountable."
Insurance scams
A well-known trick scammers will use is pressuring homeowners devastated by storm damage to sign fake documents and add more money to a plan, and guaranteeing them claims that will never come.
Your insurer will honor their home policies, Griffin said, and there's no need to rush into —or be pressured into— signing a contracting agreement. Another red flag is when a contractor attempts to discourage you from talking with your insurance company.
If you have storm damage, call your insurance company before paying any company or individual a deposit.
Make sure to review and understand any and all documents sent to your insurance company.
Repairing a damaged home
When working to find companies to help rebuild a damaged home, homeowners are reminded to get more than one estimate. Often, scammers will try to pressure you into signing a contract or hiring them — if it feels rushed, it's likely a scam.
Post-storm scammers tend to offer "quick and easy" repair jobs in exchange for an immediate deposit, sometimes even claiming that their insurance company will reimburse them.
"I encourage Arkansans not to feel pressured into immediate solutions that appear too good to be true," Griffin said.
Rules to live by:
- Demand references from companies (and check them)
- Never let a contractor pressure you into hiring them
- Never sign a contract with blanks to be filled in later
- Don't pay a contractor in full until the work is finished
- Never let a contractor discourage you from contacting your insurance company
"Be aware of people who come to our area and take advantage," Sheriff Shawn Holloway said. "Do not pay cash or money for a service until it has been provided to you ... in many cases, service never gets done or never existed."
What to do if you feel like you're being scammed
If you find yourself in a situation where you feel like you have or are being taken advantage of during this storm cleanup you can contact the attorney general's office by calling (501) 682-2007, emailing consumer@arkansasag.gov, or visiting www.ArkansasAG.gov.
Holloway also said you can contact the Benton County Sheriff's Office if you feel like you're being scammed.
"Feel free to call our office and we'll send a deputy out to make sure they're legit," he said.
Notice price gouging?
After Governor Sarah Huckabee Sanders triggered the emergency declaration, the state's anti-price gouging law went into effect. Price gouging is when businesses take advantage of situations where people will need more of a resource, and raise their prices to make more of a profit.
The law prohibits a business from charging more than 10 percent above the pre-disaster price of goods or services.
"Price gouging will not be tolerated as Arkansas recovers, and I will bring the full power of my office to bear on anyone who violates our law," Griffin said.
Violators of the price gouging law could face a fine of up to $10,000.
Examples of items exempt from being price gouged:
- Food and water
- Fuel
- Blankets, medicine, and bandages
- Flashlights, batteries, and construction materials
The ban on price gouging remains in effect for at least 30 days and can be extended another 30 days if necessary to protect Arkansans’ lives, property, or welfare. For home repairs, the law remains in effect for 180 days.
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