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Consumer Protection

THE SOUTHERN CALIFORNIA WILDFIRES:
GENERAL CONSUMER TIPS TO PREVENT FRAUD

      Our sympathies go out to the individuals and families who are victims of the most recent wildfires in Southern California. As these persons try to rebuild their homes and put their lives back on track, challenges will abound. In dealing with various individuals, groups, or companies, precautions need to be taken so as not to fall victim to fraudulent schemes which may result in additional financial hardship. The following are some of the more common questions that disaster victims might ask about what or what not to do:

      What are the basic measures I should take to avoid fraud?

      Before hiring or contracting with anyone, observe the following guidelines:

      1) Verify the person or company’s credentials. Check that licenses or certifications are current.
      2) Research prices. For example, it is a good idea to obtain multiple estimates of the cost of a service or product from multiple vendors in order to get an idea of what is a fair price. Always ask for written estimates.
      3) Ask for references.
     4) When persons show up at your home, ask for government-issued identification.
      5) Read all contracts or service agreements before signing them.
      6) When calling companies or agencies, keep a log or record of the person you spoke with, the date and time, and what was discussed.

      What if someone asks me to sign something?

      When given a document or contract to sign, you must also be allowed a reasonable amount of time to read and understand the document or contract. In fact, a person or company who really wants to help victims or provide legitimate services will want you to truly understand the document before you sign. Be wary of anyone who tells you to sign right away in order to get the low price or the special deal; there might be something in the contract they do not want you to notice. If a provision or term in the contract is not clear, do not be afraid to ask questions. Above all, get copies of everything you sign.sign.

What do I look for when hiring contractors to work on my house?

      First, verify the contractor’s license with California’s Contractors State License Board (CSLB) at 800-321-2752. Be careful about door-to-door offers of repair services. Never provide the contractor with a cash deposit. Get a written estimate of the necessary repairs or work. The written contract should detail every aspect of the work to be done.

What do I look for when hiring a moving company?

      When you are unfamiliar with the moving company, you should:

      1) Ask for references.
      2) Verify the mover’s license and good standing with the California Public Utilities Commission at (800) 877-8867.
      3) Get a written estimate of the cost of the move and how long the move will take.
      4) If a written estimate cannot be provided, the mover must provide you a “not to exceed” price for all household moves.
      5) Understand the mover’s insurance limits and consider if you should purchase additional insurance.

What do I look for when hiring a storage company?

      Before turning over your personal property to a storage company, you should:

      1) Check that the storage company is licensed and bonded.
      2) Check that the storage company is legitimate and reputable by talking to previous customers or by checking with the Better Business Bureau.
      3) Have a written contract with the storage company that lists what services they will provide, what they will cost, and what properties you will be turning over for storage.

After a disaster, can sellers radically increase prices?

      The act of charging services or pricing goods at unreasonably high prices is commonly known as price gouging. Once the governor declares a state of emergency, it is illegal for businesses to increase the cost of certain goods and services by more than 10% unless they can prove that the increase is a result of an increase in the suppliers’ price. The prohibition on price gouging applies to food, emergency and medical supplies, gasoline, repairs and construction. If you suspect price gouging, contact your local District Attorney’s Office or the California Attorney General’s Office at (800) 952-5225.

Where do I report a fraud?

      To report fraud or a scam in the state of California start with the California Office of the Attorney General, the Better Business Bureau, or contact the local municipal, state or federal regulators most likely responsible for the industry where the fraud was committed. 

© Law Offices C. Joe Sayas, Jr.