In the aftermath of Hurricane Helene and following Wednesday’s federal major disaster declaration impacting flood-ravaged parts of East Tennessee, several state agencies have joined forces to warn the public about the potential for scams targeting those directly recovering or contributing to the ongoing efforts to help.
The Tennessee Bureau of Investigation, the Tennessee Attorney General’s Office, and the Tennessee Department of Commerce and Insurance share a common commitment to consumer protection, and, in moments of tragedy, concern about those who take advantage of others.
“We can expect to hear about an uptick in scams targeting flood victims and those trying to do the right thing to help,” said TBI Director David Rausch. “Now is the time to work together to make sure every dollar and every donation goes to help those who need it most and take our first steps toward recovery.”
TBI stands prepared to receive and coordinate allegations of criminal conduct related to the flood recovery effort. Those wishing to submit a tip can do so by calling 1-800-TBI-FIND or emailing TipsToTBI@tbi.tn.gov.
TENNESSEE ATTORNEY GENERAL’S OFFICE
The AG’s Division of Consumer Affairs reminds Tennesseans to be cautious and wary of disaster relief scams. Many Tennesseans look to hire professionals to make repairs to damaged property, find a temporary shelter, or purchase essentials or other supplies while repairing homes or businesses. Others not directly affected by the flooding may want to donate money to help those in need. Although many people will lend a hand during challenging times, some will take advantage of the vulnerable position of survivors of natural disasters or the generosity of donors.
The following information provides helpful tips to reduce chances of being scammed as you seek help for yourself and your loved ones or wish to donate to those in need.
Price Gouging
After natural disasters, bad actors unreasonably raise the prices of essential goods. In Tennessee, it is illegal to “unreasonably raise prices or unreasonably restrict supplies of essential goods, commodities or services” as a direct response to a natural disaster.
Tennessee law also states that upon a declaration of economic disruption by the governor or executive order, people and businesses cannot charge a price that is grossly in excess of the price generally charged for any of the following types of goods or services:
Charity Scams
Make sure your donations count and are going to the people who really need your help. You can research your charity by going to any of the following websites:
Charities in Tennessee are also required to be licensed. To check to make sure the charity you are donating to is properly licensed in Tennessee go to: https://sos.tn.gov/charities and search the charity name. You can also find more information about the warning signs of charity scams here: https://www.tn.gov/content/tn/attorneygeneral/working-for-tennessee/consumer/resources/materials/charity-scams.html.
Submitting a Complaint
If you are a victim of a scam or price gouging or want to report a person or company for disaster relief scams or price gouging, please contact the Tennessee Division of Consumer Affairs at 615-741-4737 or submit a complaint online at: https://www.tn.gov/attorneygeneral/working-for-tennessee/consumer/file-a-complaint.html.
For more information, please visit: Price Gouging & Disaster Recovery (tn.gov).
“While most Tennesseans are showing the best of the Volunteer spirit to our neighbors devastated by Helene, a few bad actors always slime out of the woodwork to take advantage of those in need,” said Tennessee Attorney General Skrmetti. “Price gouging and scamming vulnerable people after disasters is not only repulsive, it’s illegal. My office will not hesitate to enforce Tennessee’s consumer protection laws against any bad actor attempting to rip off Tennesseans recovering from the storm.”
TENNESSEE DEPARTMENT OF COMMERCE & INSURANCE
As part of TDCI’s efforts to assist consumers, TDCI Commissioner Carter Lawrence has requested that all insurance carriers give affected Tennessee consumers a 60-day grace period where insurance policies cannot be cancelled because of nonpayment of premiums, in addition to one early or replacement refill for medication per prescription, among other details in a new insurance bulletin. The bulletin can be found here.
“On behalf of the entire TDCI team, I want to express our prayers and support for the families and loved ones of those who lost their lives, homes, and property in the wake of Hurricane Helene’s massive devastation. I also want to share our deepest support for the first responders who put themselves in harm’s way in order to help save lives in their communities,” said Lawrence. “While storms like Helene will test our resilience and strength, I have seen how Tennesseans embody the spirit of the ‘Volunteer State’ by helping their neighbors any way they can during emergencies. I believe that we will emerge stronger and closer to one another as we rebuild and recover.”
You should be wary of contractors who don’t have proper licensing to work on your home or property. Contractors in Tennessee are required to register and be licensed by the Tennessee Board for Licensing Contractors. Ask contractors offering services to provide the name they used to register with the Tennessee Board of Licensing Contractors. You can look up contractors you’re considering hiring to make sure that they are properly registered in Tennessee by searching the company name or contractor information here: https://search.cloud.commerce.tn.gov/.
Another way to learn more about a contractor’s history of providing services is by searching the contractor’s name online along with the words “scam,” “review,” or “complaints,” and reviewing the results to see if others have complained about being scammed by a contractor. You can also search the BBB’s website for complaints and rating information about a contractor’s company.
You do not need to pay for the cost of home repairs in full upfront. Home improvement contractors in Tennessee are generally prohibited from charging more than one-third of the contract price for a deposit, except in certain specific instances. Home improvement contractors are also required to provide a written contract with the names of all parties executing the contract, the nature of the work being completed, the amount you are paying, and when the work will begin.
If your insurance is covering part or all of the cost of repairs, be sure to avoid signing over your entire insurance check or claim to the contractor before the work is completed. That helps ensure that the contractor completes the work, and you have a chance to give your approval.
When applying for assistance for home repairs, know that federal and state entities and reputable not-for-profits do not solicit or accept funds as a condition of providing emergency assistance. You are not required to pay a company to facilitate your application for assistance, but instead you can submit the application yourself.
Hiring a Contractor
To file a complaint about a contractor, visit TDCI’s website online.