Indiana Attorney General Warns Residents of Scammers Following Storms

The Indiana Attorney General’s office is warning citizens to be aware of scammers targeting residents in the wake of the powerful derecho and widespread flooding across the state.

“Thousands of Hoosiers are assessing damage and beginning the hard work of rebuilding,” Attorney General Todd Rokita said. “These fraudsters prey on people at their most vulnerable. Do your homework, be tenacious, demand everything in writing, and make sure your resources go to legitimate recovery—not into the pockets of con artists.”

Indiana law requires that contracts for residential repairs or improvements exceeding $150 must be in writing and include, at a minimum:

• The name and address of the homeowner and the property;

• The name, address, and contact information of the contractor (and any agents);

• A reasonably detailed description of the work;

• Approximate start and completion dates

• The full contract price; and

• A clear statement if third parties or subcontractors will perform any of the work or supply materials

Any change or expansion of the project requires a written, signed change order. Homeowners generally have three business days to cancel a home improvement contract with no questions asked. Contractors are prohibited from advertising, offering, or promising to pay or rebate any portion of an insurance deductible. They also cannot act as public adjusters.

If a contractor violates HICA, that violation constitutes a “deceptive act” under Indiana’s Deceptive Consumer Sales Act. A company or contractor who commits a deceptive act under the DCSA can be responsible for actual damages, attorney’s fees, and injunctive relief.

The Attorney General’s office these red flags and tips for consumers to be aware of:

• High-pressure tactics or insistence on signing immediately;

• Verbal promises instead of a complete written contract;

• Offers to waive or reduce your deductible (illegal)

• Claims that “FEMA will pay for everything” or that the contractor will handle the entire insurance claim without your approval of changes;

• Requests for large upfront payments or final payment before work is fully complete;

• Failure to disclose use of subcontractors or third parties; and

• Requests for multiple referrals or 5-star reviews in exchange for discounts that effectively reduce your deductible

Topics Windstorm