BBB: Memorial Day Scams Target Military, Families, Supporters

Memorial Day is a time to honor those who serve our country and remember those who have died in service. But sadly, it has also become an opportunity for scammers to target active service members and elderly veterans. The Better Business Bureau of Minnesota and North Dakota (BBB) is urging consumers and donors to be on the lookout for deals that seem too good to be true, and also for disreputable charities.

“The unique lifestyle of our service members makes them prime targets for scammers,” says Dana Badgerow, President and CEO of the BBB. “It’s imperative that we educate our service members and ensure that the support we give to them equals the effort they make every day on behalf of us.”

“Donors also need to watch out for questionable charities that raise funds on behalf of military organizations,” adds Art Taylor, President and CEO of the BBB Wise Giving Alliance. “When you make a donation, always check www.give.org  to see that the group meets BBB charity standards, especially around Memorial Day.  Too many solicitors that fail to meet BBB standards call and say they help veterans, service members or their families, and little of the money donated will serve that purpose.”

Among the scams to watch out for:

• Solicitors posing as the Veterans Administration and contacting veterans to say they need to update their credit card, bank or other financial records with the VA;

• Charging service members for services they could get for free or less expensively elsewhere, such as military records;

• Fraudulent investment schemes that convince veterans to transfer their assets into an irrevocable trust;

• Offering “instant approval” military loans (“no credit check,” “all ranks approved”) that can have high interest rates and hidden fees;

• Advertising housing online with military discounts and incentives, and then bilking service personnel out of the security deposit;

• Trying to sell things like security systems to spouses of deployed military personnel by saying the service member ordered it to protect his or her family;

• Selling stolen vehicles at low prices by claiming to be soldiers who need to sell fast because they’ve been deployed;

• Posing as government contractors recruiting veterans and then asking for a copy of the job applicants’ passport (which contains a lot of personal information);

• Posing on online dating services as a lonely service member in a remote part of Iraq or Afghanistan, and then asking for money to be wired to a third party for some emergency.

The BBB advises service members, veterans and all consumers never to give personal identification information (Social Security, bank account, military identification or credit card numbers, etc.) to anyone who contacts you by phone or e-mail, and to be wary of any solicitations that involve purchasing something or transferring money. Consumers can check out businesses and charities for free at www.bbb.org. 

BBB Advice for Hiring a Roofing Contractor You Can Trust

Natural disasters like tornados, hurricanes and earthquakes can bring out the best in people, as strangers reach out to help those in need. Unfortunately, crises also bring out persons who choose to attempt to take advantage of the victims. Some of the most common "after-disaster" scams involve damage done to roofs.

Whether your roof gets damaged by the elements or just needs to be replaced due to age, you need to take certain precautions when it comes to hiring a roofing contractor. In 2011, the Better Business Bureau (BBB) received more than 3.3 million inquiries from consumers looking to find a roofer they could trust – making it the top inquired industry in the BBB system.

The BBB of Minnesota and North Dakota offers the following tips to homeowners who are looking to replace roofs damaged by natural disasters:

Do your research. Check with your insurance company about policy coverage and specific filing requirements. Save all receipts if temporary roofing repairs are necessary.

Stay calm. Although you may be anxious to get things back to normal, avoid letting your emotions get the better of you. Don't be pressured into making an immediate decision with a long-term impact.  Be pro-active in selecting a company and not re-active to the numerous sales solicitations you’ll likely receive.

Shop around. For major repairs, take time to shop around and get 3-4 estimates based on the same specifications and materials. Check out references and verify that the contractor is licensed and/or registered to do work in your area. Also, check with your local building inspector to see if a building permit is required. If so, your contractor should be responsible for securing the permit.

Avoid high-pressure sales tactics. Be wary of door-to-door workers who claim to have left-over materials from a job “down the street” or who do not have a permanent place of business. If sales people go door-to-door, check to see if your community requires them to have solicitation permits.

Trust your gut. Be leery if a worker shows up on your doorstep to announce that your home is unsafe. If you are concerned about possible structural damage to your home, have an engineer, architect or building official inspect it. While most roofing contractors abide by the law, be careful allowing someone you do not know to inspect your roof. An unethical contractor may actually create damage to get work.

Get everything in writing. Require a written contract agreement with anyone you hire. Be sure their name, address, license number and phone number are included in the contract. Read and understand the contract in its entirety, don’t sign a blank contract, and make sure you get a copy of the signed contract at the time of signature.

Clearly written proposals that are detailed and broken down into separate line items are a good sign that the contractor is being thorough and has prepared an accurate estimate. The following is a partial list of items your estimate or proposal should include:

• The type of roof covering, manufacturer and color
• Materials to be included in the work, e.g., underlayment, ice dam protection membrane
• Scope of work to be done

•  
  • Removal or replacement of existing roof
  • Flashing work, e.g., existing flashings to be replaced or re-used, adding new flashing, flashing metal type
  • Ventilation work, e.g., adding new vents

• Who is responsible for repairing/replacing exterior landscape or interior finishes that are damaged during the course of the work? Make sure that it contains language addressing who is responsible for any damage that occurs as a result of the work. All items of concern and work to be done should be included in the contract.
• Installation method
• Approximate starting and completion dates
• Payment procedures
• Length of warranty and what is covered, e.g., workmanship, water leakage
• Who will haul away the old roofing materials and/or project waste (e.g. extra materials, packaging, etc.)? Is there extra charge for this service?

If one estimate seems much lower than the others and it sounds too good to be true, it probably is. Many fly-by-night contractors' below-cost bids seem attractive, but these contractors are often uninsured and perform substandard work or use substandard materials. Make sure to read the fine print. Some contracts use a clause where substantial cancellation fees or liquidation damages are required if the homeowner decides not to use the contractor after insurance approval of the claim. In some instances homeowners may be required to pay the full agreed price if they cancel after the 3 day cancellation period. If an estimate or contract is confusing, ask the contractor to break it down into items/terms you can understand or seek outside advice.

Disaster victims should never feel forced to make a hasty decision or to choose an unknown contractor. The BBB has BBB Business Reviews on more than 67,000 roofing contractors, and they are available for free at www.bbb.org.

BBB recognizes “National Small Business Week”

May 20th-26th is “National Small Business Week,” a time to celebrate the growing business demographic in our country. Entrepreneurs and small business owners are the backbone of the U.S. economy: 60 to 80 percent of the new jobs in the country are created by the approximately 27.2 million small businesses in the U.S. It is estimated that over half of Americans either own or work for a small business. In honor of National Small Business Week, the Better Business Bureau of Minnesota and North Dakota (BBB) is encouraging small business owners to take advantage of the many free resources offered by the BBB and the Federal Trade Commission (FTC):

 The mission of the Better Business Bureau is to be the leader in building marketplace trust by promoting, through self-regulation, the highest standards of business ethics and conduct, and to instill confidence in responsible businesses through programs of education and action that inform, assist and protect the general public. Our hours of operation are 8 a.m. to 5 p.m. Monday through Friday. Contact the BBB atwww.bbb.org or 651-699-1111, toll-free at 1-800-646-6222. Visit our Centennial website at bbbis100.org.

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