CONTACT

July 11, 2002 Garth Lucero, 303-866-5132 (Atty. Gen. Office)
Joan Padilla, 303-866-3762 (Atty. Gen. Office)
Carol Odell, 719-636-5076 ext. 111 (BBB of the Pikes Peak Region in Colorado Springs)

Attorney General Ken Salazar, Better Business Bureaus & AARP ElderWatch warn consumers to be on alert for possible fire-related scams

Denver--Colorado Attorney General Ken Salazar, the Better Business Bureaus and AARP ElderWatch urge residents to be cautious about possible consumer frauds arising from the recent fires throughout Colorado. These scams can come in the form of disaster relief and charity fundraising efforts, or by fraudulent construction, home repair offers or loan schemes. The Attorney General’s office has not received complaints about scams related to the recent fires in Colorado, but issues this advisory as precautionary consumer information.

“Unfortunately, natural disasters provide an excellent opportunity for unscrupulous people to profit by taking advantage of individuals whose lives have been disrupted,” said Attorney General Salazar. “Consumers should carefully research any organization offering services or soliciting donations related to the recent fire damage,” advised Salazar.

“It is important to know who you are doing business with,” said Carol Odell, Executive Director/CEO of the Better Business Bureau of the Pikes Peak Region. “Check with the Better Business Bureau. Obtain references and bids. People are anxious to get their lives back to normal. Take the time to protect yourself and your money,” advised Odell.

Consumers should be particularly wary of fraudulent charitable solicitations by con artists who seek to profit from the misfortunes of others. Their so-called “relief efforts” can in fact be nothing more than a charity scam to pocket the money. If you wish to help fire victims, remember these simple rules:

• Don't be swayed by strong emotional appeals -- take some time to examine the charity's claims and to consider alternatives;
• Don't be pressured to make an immediate decision -- while donations will help, it is not likely that two or three days will make a difference;
• Don't provide personal credit card or bank account information to fundraisers, especially telemarketers;
• Ask for and get the name and address of both the paid fundraiser and the charity they represent;
• Ask the fundraiser about the amount of your donation that will actually go to the charity and how much will be retained by the fundraiser -- under Colorado law, they must tell you this if asked;
• Numerous charity organizations maintain legitimate web sites through which donations can be made. However, e-mail solicitations are rarely used by legitimate organizations to solicit donations. If you receive an e-mail solicitation directing you to a private web site which requests your credit card number, be very wary because it is possible this is a scam.

In the aftermath of the fires, consumers whose property is damaged will need repair and restoration services. Home and business owners, therefore, are cautioned to check out general repair companies and contractors before any work begins. Consumers should consider using reputable local businesses within the community. The Better Business Bureau is a good source to check the reputation of a contractor or business. Also, consumers may avoid problems by observing the following suggestions:

• Get detailed proposals and contracts in writing, and get a second opinion;
• Avoid dealing with contractors who require an unusually large down payment or full payment before the job is complete;
• Be sure the contractor has the necessary insurance (liability, workers compensation and property) coverage before work is started; and
• Check the contractor’s references and try to inspect work they have done.

Property owners in need of loans to repair damaged property may be vulnerable to loan scams. Consumers should not be tempted by promises of “guaranteed” loans for up-front fees. Advanced fee loans are illegal in Colorado. A loan broker can only legally collect a finder’s fee after the borrower has received the loan proceeds. Also, beware of classified ads asking you to call a 1-800 or 1-900 number for a “guaranteed” loan. Consumers should consider doing business with a local bank or finance company.

Consumers are also warned to be wary of high-pressure sales tactics by door-to-door salespersons and telemarketers. Do not let yourself be hurried, intimidated, or coerced. Get everything in writing, including price, warranty, and all conditions. Tell the salesperson that you will check out the company first and respond later. By law, consumers must be informed by the salesperson during a door-to-door sales presentation that there is a three-day right to cancel any purchase over $25.

The five Better Business Bureaus which serve Colorado are the Denver/Boulder BBB; Four Corners/Western Slope BBB in Farmington, New Mexico; Mountain States BBB in Fort Collins; BBB of the Pikes Peak Region in Colorado Springs; and Southern Colorado BBB in Pueblo. AARP ElderWatch is a program with the Colorado Attorney General’s office and the AARP Foundation.

Consumers who suspect they may have been solicited by or victimized by a fraudulent scam should notify their local district attorney or the Colorado Attorney General at 1-800-222-4444. Consumers can notify the Colorado Attorney General’s office online at stop.fraud@state.co.us.