EKB News

KENTUCKY...
Pike County residents affected by the July storms and flooding are urged
to be alert for and report potential fraud during recovery and rebuilding
efforts.

Those who suspect anyone -
contractor, inspector, disaster survivor or someone posing as any of these - of
committing fraudulent activities should call the National Center for Disaster
Fraud 800-323-8603.

Complaints may also be made
to local law enforcement agencies and through the Kentucky Attorney General's
Consumer Protection Hotline at 888-432-9257 or online at www.ag.ky.gov.

To safeguard against disaster-related
fraud, officials suggest the following precautions:

Ask for ID. If
someone represents himself or herself as a federal employee, such as an
inspector, but doesn't produce identification, you should ask to see the
identification. Note: a FEMA shirt or jacket is not absolute proof of someone's
affiliation with the government.

Inspectors sent by FEMA or
verifiers from the U.S. Small Business Administration (SBA) carry official,
laminated photo identification. Applicants may receive a visit from more
than one inspector or verifier.

Safeguard personal information. Do not give out your Social Security number, bank
account or your FEMA registration number to individuals claiming to be
affiliated with the federal government. FEMA inspectors never require this
information.

When you called FEMA to
register, you were asked for your Social Security number. If you asked for
direct deposit, you also gave a bank number. If a FEMA representative makes a
follow-up call to you, he or she will ask for the last four digits of your Social Security number,verify other critical information which may include your banking information, depending on the reason for the call.

If you have any doubts, you can shut the door or hang up and dial the FEMA Helpline at 800-621-FEMA (3362). That way, you are in charge of the call.

Homeowners, renters and
businesses of all sizes with questions about the SBA disaster loan application
process can call the SBA Customer Service Center at 800-659-2955.

Be alert when your doorbell rings. People going door-to-door to damaged homes or
telephoning disaster survivors and claiming to be building contractors could be
frauds. If visitors or callers solicit personal information such as Social
Security or bank account numbers, they are not legitimate.

Federal workers do not solicit or accept money. Remember, FEMA and SBA staff members
never
charge applicants for disaster assistance, inspections, or for help in filling
out applications. If in

doubt, do not give out information. You
should report people claiming to be government workers to local police.

FEMA inspectors only verify damage. FEMA inspectors do not hire or endorse specific
contractors to repair damage.

If you are hiring a
contractor to do work, here are some tips:

Use reliable, licensed contractors. Demand to see a license. For more information
about a
contractor, or if you are unsure about the validity of a license, check with
the Better Business Bureau and your local or state contractor licensing
officials.

Get a written estimate, and be sure to read the fine
print. Always get estimates from
several reputable contractors before making a decision. Always hire a local
contractor if at all possible.

Get references and check
them. Call former customers who had similar work done to determine if
they were happy with the work done.

Ask for proof of insurance. Make sure your contractor carries general liability
insurance, workers' compensation and is bonded. A homeowner could be liable for
accidents on the property when working with an uninsured contractor.

Get a written contract. A complete contract should clearly state all the work
to be performed, all associated costs, the payment schedule and obligate the
contractor to pay for all materials ordered for the job. A contract also should contain "Buyer's right to cancel" information.

Obtain permits.
The contract should clearly state who will obtain the necessary permits. Have a
lawyer review the contract if substantial costs are involved. Keep a copy of
the signed contract.

Get guarantees in writing. If the contractor provides any guarantees, they
should be written into the contract clearly, stating what is guaranteed, who is
responsible for the guarantee and how long the guarantee is valid.

Pay by check.
Avoid paying in advance and making payments in cash if at all possible. A
reasonable down payment is 30 percent of the total cost of the project.
Remember there is a federal law which requires a three-day "cooling off" period
for unsolicited door-to-door sales of more than $25.

Make final payments only when work is completed. Do not sign completion papers or
make the final payment until the work is completed to your satisfaction. A reputable
contractor will not threaten you or pressure you to sign if the job is not
properly finished.

More information about making disaster-related repairs or rebuilding after a disaster is available online at www.fema.gov/rebuild.

For additional safety tips, helpful links and
information on this disaster, visit www.kyem.ky.gov.