Disaster Scams

A natural disaster not only leaves lives uprooted in its wake, it can also bring price gougers, scam artists, and bogus charities into our community.

Working with Contractors

When choosing a contractor for home projects in Texas, exercise caution to avoid potential issues. Follow these tips for a smooth and reliable experience:

CHECK CREDENTIALS

  • Ensure the contractor is reputable, insured, and licensed (if applicable).
  • Verify the contractor's business is real with online reviews, company web pages, and licensing boards.
  • Verify contractor contact information, business address, and registration with your local municipality.

TRADE-SPECIFIC REGULATIONS

PERMITTING REQUIREMENTS

EFFECTIVE COMMUNICATION

  • Discuss the project thoroughly with the contractor to prevent misunderstandings.
  • Discuss project timelines and what you should expect from the contractor and their crews. 
  • Communicate your project expectations and desired outcome to determine if a potential contractor is a good choice for your project.

WRITTEN CONTRACTS

  • Always use a written contract detailing project specifics, including names, addresses, and phone numbers.
  • Ensure the agreement covers the work description, materials, start and completion dates, cleanup, and payment schedule.
  • Avoid contracts with blanks and never pay the full cost upfront.

PAYMENT GUIDELINES

  • Restrict upfront payments on remodeling projects to no more than one-third of the total cost.
  • Withhold the final payment until the project is completed as per the contract and any permits have been finished and closed.
  • Confirm payments to suppliers, employees, and subcontractors have been made by the contractor.

CHANGES AND AMENDMENTS

  • Address any changes to the original contract promptly and put them in writing.
  • Clearly outline the associated costs and time implications.

COMMON CONSUMER ISSUES

  • Be aware of issues like frequent cost overruns, missed deadlines, lack of communication, and poor workmanship.
  • Watch out for contractors who request advance payments and fail to show up on scheduled work dates. These individuals often vanish without completing the work.

PERMIT AND LICENSE VERIFICATION

  • Request copies of the City permit and proof of contractor registration.
  • Request to see a copy of the contractor's license or pocket card issued by the State of Texas (all trades workers).
  • Document any issues in writing and communicate them to the contractor for resolution verbally and in written form. 

ADDITIONAL SUPPORT

  • Seek help from The Attorney General of Texas at (800) 252-8011 for further assistance.
  • Contact your local building Department.
  • When applicable check with your insurance agent for possible documentation or work verification requirements.

By following these guidelines and staying informed, consumers can make informed decisions and minimize potential disputes with contractors.

Beware of Fake Federal and State Workers

After a disaster, scam artists, identity thieves, and other criminals often attempt to take advantage of disaster survivors. We encourage survivors to watch for and report any suspicious activity.

Beware of Fraud and Scams

Protect your identity and stay informed by doing these easy things:

  • DHS, FEMA, SBA, and other federal agencies will never charge you for disaster assistance.
  • Always ask to see I.D. FEMA personnel will always have an official identification badge.
  • Do not offer any personal information unless you are speaking with a verified FEMA representative.
  • Stay tuned to trusted local media for updates from your local officials on disaster fraud and scams.
  • Check with local law enforcement to ensure your identity is protected.

Report Fraud or Scams

Learn more about Disaster Fraud by visiting FEMA's Disaster Fraud Website.

Price Gouging

After a disaster, you may see some businesses excessively raise their prices on essential goods and services, like water, groceries, fuel, and car and home repairs. Charging excessive prices for necessities in an officially recognized disaster area can constitute price gouging.

Price gouging is illegal, and can be prosecuted by the Office of the Attorney General (OAG) under the Texas Deceptive Trade Practices Act. The OAG has the authority to prosecute any business that engages in price gouging after a disaster has been declared by the governor.

If you feel you are the victim of price gouging or a scam, please visit the Office of the Attorney General of Texas How to Spot and Report Price Gouging website, or call (800)-252-8011.

Door-to-door Sales, Repairs, & Contractors

Natural disasters often bring flocks of door-to-door salespeople to affected communities. While many of these are honest and reputable, some are not. We'll help you keep an eye out for scammers and people trying to take advantage.

The City of Seabrook has an ordinance that requires all solicitors, peddlers, and vendors to have a permit and carry identification while working. A legitimate door-to-door salesperson in Seabrook will have a Seabrook-issued ID badge. Below are some safety tips to keep in mind:

  • Ensure the solicitor is wearing their city-issued permit, if not, you may ask to see it.
  • Anytime someone is at your door whom you do not know, it is best to speak behind a locked door.
  • Do not engage in conversation with the solicitor if you are not interested in their product or service.
  • Do not let the solicitor inside your home.
  • If you have a "No Solicitors" or "No Trespassing" sign in your yard or on your door, do not answer the door or simply ask them to leave.
  • Contact the Seabrook Police Department by calling (281) 291-5610 if you have concerns about the solicitor at your door.

For most consumers, the home they own and live in is their largest and most important investment. Adding improvements, repairing damage, and keeping up with routine maintenance are all part of the smart consumer's effort to protect and increase the value of this important asset. Scammers know you'll spend money to improve your home. Be sure you know how to protect yourself!

Below are some tips from the Office of the Attorney General of Texas on working with contractors and repair people:

  • Get more than one estimate. Don't be pushed into signing a contract right away. Take your time.
  • Do your homework. Check the contractor out online and consider getting references from past customers.
  • Get everything in writing and keep a copy of all documents. The total cost, work to be done, schedule, payment terms, and other expectations should be written in specific detail. A notice of cancellation - giving you the right to change your mind within three business days - must be included if the transaction occurs at your home.
  • Do not sign a contract with blanks. Unscrupulous salespeople could enter unacceptable terms later.
  • Ask for proof of insurance. Make sure that the contractor has disability and workers' compensation insurance. If the contractor is not insured, you could be liable for accidents on your property.
  • Find out in writing if the contractor or business will place a lien, security interest, or mortgage on your property.
  • Ask for guarantees in writing. If the contractor provides guarantees, they should be written into the contract, clearly stating what is guaranteed, who is responsible for the guarantee (the dealer, the contractor, or the manufacturer), and how long the guarantee is valid.
  • Don't sign completion papers or make final payments 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 finished properly.

Fraudulent Charities

In the wake of a natural emergency, you may want to assist by giving to a charity that provides assistance to victims. We commend your generosity but urge you to make sure your donations go to legitimate organizations.

It is wise to give only to charities you are already familiar with. Most reputable organizations do not directly solicit donations from individual consumers by telephone or door-to-door visits. Do not use links embedded in unsolicited emails to access an organization's website.

The following resources can help you research charities:

  • CharityWatch formerly known as The American Institute of Philanthropy, is a charity watchdog group that helps donors make informed choices.
  • Guidestar gathers data on millions of IRS-recognized non-profits.