CONSUMER ALERT: Carr Warns of Price Gouging, Home Repair Fraud Following Tropical Storm Debby

ATLANTA, GA – Attorney General Chris Carr is warning Georgians to be on the lookout for possible price gouging and home repair fraud in the wake of Tropical Storm Debby. Consumers who are purchasing a used car should also be wary of vehicles that might have suffered damage from the storm.

“As we continue to pray for all those impacted by Tropical Storm Debby, we want to remind Georgians of the important steps they can take to protect themselves from potential fraud,” said Carr. “If you’re searching for a contractor, make sure to do your research before turning over your hard-earned dollars. We won’t allow scammers to take advantage of families and businesses working to rebuild and recover, and we stand ready to assist those who think they have encountered a scam.”

Price Gouging

On Aug. 3, 2024, Governor Brian Kemp issued a State of Emergency for Tropical Depression 4 (Tropical Storm Debby). Price gouging protections pertaining to goods and services, including motor fuel, diesel fuel, and other petroleum products, are in effect until 11:59 p.m. on Thursday, Aug. 15, 2024. For more information about price gouging, visit the Attorney General’s Consumer Protection Division website here.

Home Repair Fraud

Often referred to as “storm chasers,” these scam artists may ask homeowners for up-front payments for home repair service and then disappear without ever doing the work. In other cases, scammers may charge exorbitant prices for tree removal, charge you for unnecessary repairs, or do substandard work. Sometimes scammers offer to cover the homeowner’s insurance deductible and persuade them to give fake reports to the insurance company, potentially implicating the homeowner in a case of insurance fraud.

The Attorney General’s Consumer Protection Division offers the following tips to help consumers avoid scams and other fraud in the aftermath of a storm.

• Steer clear of any contractor who asks for full payment up-front, only accepts payment in cash, or refuses to provide you with a written contract.
• Avoid door-to-door offers for home repair work. Instead, ask friends and neighbors for referrals.
• Be skeptical of any contractor that offers to pay your insurance deductible or offers other no-cost incentives, as these can be signs of a scam. Always talk to your insurance company before committing to any storm-related repairs or inspections.
• Ask contractors for references and check them out.
• Check with the Better Business Bureau to see if there are any complaints against the business.
• Ensure that the contractor has the required licensing and/or affiliation:
  • Tree Removal: Check with the International Society of Arboriculture to make sure the person has a valid arborist license.
  • Water Damage and Mold: Only hire businesses that are local and qualified in mold remediation and property restoration. To find local contractors and restorers, check with the Society of Cleaning and Restoration Technicians and the Restoration Industry Association.
  • Contractors: General contractors, electricians, plumbers, and heating and air conditioning contractors must be licensed with the Georgia Secretary of State’s Office. To look up a contractor, visit sos.ga.gov. Please note that certain specialty occupations such as roofers, tree removal services, painters, drywall contractors, and repair handymen are not required to be licensed by the state.
• Legitimate contractors should be able to provide the following:
  • Business license
  • General liability insurance
  • Workers compensation insurance
  • Written manufacturer warranties
  • Written labor warranties
• Public adjusters are also required to carry a license to do work in Georgia. Call the Insurance Commissioner’s Office at 1-800-656-2298 to verify if a public adjuster is licensed and that their contract has been approved before hiring them to do any work on your behalf.

For additional information on home repair fraud and other storm-related scams, visit the Attorney General’s Consumer Protection Division website here.

Flood-Damaged Vehicles

Flood-damaged vehicles are often sold at auction and then wind up on used car lots. Generally, a flood-damaged vehicle is declared a total loss by an auto insurer and titled as a “salvage vehicle.” However, bad actors may try to conceal the damage by engaging in a practice known as “title washing,” whereby they move the vehicle to another state where branding a title as damaged is not required, and then sell the vehicle back in the original state or elsewhere so that the title looks clean. There may be no official record of the flooding or water damage if a car was uninsured at the time that the damage occurred. For these reasons, the car dealer that ends up selling the vehicle may not always be aware that the vehicle suffered flood damage in the first place.

If a vehicle’s body, engine, transmission or mechanical parts have been submerged in water, it will probably have electrical problems and the brakes, airbags and computer system may be impaired. Unfortunately, this damage may not be readily apparent, especially to the average consumer.

There are several steps you can take to avoid buying a flood-damaged vehicle:

• Check the vehicle’s history by going to the National Motor Vehicle Title Information System (NVMTIS). This is the only publicly available database to which all auto insurers, salvage pools that auction off totaled cars, junkyards, and auto recyclers in all 50 states are required by federal law to report total loss vehicles within 30 days. Go to vehiclehistory.bja.ojp.gov, enter the Vehicle Identification Number (VIN), and check to see whether the car has been branded as “junk,” “salvage,” “flood,” “rebuilt” or “reconstructed.”
• The National Insurance Crime Bureau also maintains on its website a partial database of vehicles affected by hurricanes. You can search for free for by the VIN number using the site’s VINCheck feature. Keep in mind that this information has not been verified for completeness or accuracy. When you search this database or review the vehicle history report, remember that neither is a substitute for a thorough physical inspection.
• Look for signs of flood damage. A musty odor, water marks or faded fabrics may be a sign of flood damage. A strong detergent smell inside the car or in the engine may indicate that someone is trying to mask a mildew smell. Rust and metal flaking are also red flags. Check the upholstery, dashboard, glove compartment, trunk, inner doors, engine area, and under the seats and carpeting for mud or silt. Look for drainage holes beneath the car. Test and retest the ignition, lights, wipers, air conditioner, heater and all accessories.
• Most importantly, have the car inspected by a trusted mechanic who is not affiliated with the dealership selling the vehicle. Have this inspection done before you sign a contract or pay any money.

For additional tips on buying a used vehicle, visit the Attorney General's Consumer Protection Division website here. 

Reporting Contacts & Other Resources

If you think you have encountered a scam, contact your local law enforcement agency or the Attorney General’s Consumer Protection Division at 404-651-8600 or 1-800-869-1123 (toll-free in Georgia). Consumers can also file an online complaint here.

If you believe a roofer or other contractor has committed insurance fraud, file a report with the Insurance Commissioner’s Office here or call 404-656-2070 or 1-800-656-2298.

If you have trouble making contact with or receiving a timely response from your insurance company or if you have questions about your insurance policy, call 1-800-656-2298 or visit the Insurance Commissioner’s website here.