Beware of Contractor Fraud: Go Local, Do Your Research
In the wake of recent disasters, the Federal Emergency Management Agency (FEMA) and the New Mexico Department of Homeland Security and Emergency Management (NMDHSEM) are urging residents to stay vigilant against post-disaster fraud and scams. These fraudulent attempts can come through various channels, including phone calls, mail, email, the Internet, or even in-person visits. Con artists are often creative and resourceful, making it crucial for residents to stay alert and cautious. Remember, if an offer seems too good to be true, it probably is.
FEMA does not license or certify contractors. However, they strongly recommend using local contractors who are known and trusted within the community. Scam artists from out of town often arrive quickly after a disaster, looking to exploit vulnerable residents. Before hiring a contractor, it’s essential to verify their credentials. Ensure they are licensed to work in New Mexico by contacting the New Mexico State Licensing Board for Contractors. You can visit their website at rld.nm.gov/about-us/public-information-hub/online-services or call them at (505) 476-4500.
Be Alert to Potential Scams
Fake or unlicensed contractors may attempt to take advantage of residents affected by the wildfires. As insurance settlements, grants, and loans provide homeowners with the means to repair their homes, it’s crucial to ensure the people hired are qualified and trustworthy. FEMA does not pay contractors directly; instead, homeowners will be reimbursed by FEMA for eligible expenses.
Common Contractor Scams and Warning Signs:
Door-to-Door Solicitations: Be cautious of contractors who show up uninvited.
High-Pressure Sales or Scare Tactics: Legitimate contractors won’t rush you to make a decision.
Demand for Cash, Large Down Payments, or Full Payment in Advance: These are major red flags.
Special Deals or Extremely Low Bids: If it sounds too good to be true, it probably is.
Verbal Agreements Only: Always insist on a written contract.
Out-of-State Contractors Without a Permanent Place of Business or Insurance: Verify their legitimacy and local presence.
Inadequate References: Reliable contractors will have verifiable references.
Recognizing these warning signs can save you from significant financial and emotional distress. If you encounter suspicious activity, report it immediately to your local police department, the FEMA Disaster Fraud Hotline at 866-223-0814, or the New Mexico Office of the Attorney General Consumer Protection Section. Visit nmag.gov/consumer-protection-1.aspx or submit a complaint via the New Mexico Office of the Attorney General's page at secure.nmag.gov/ecs.
Additionally, you can report suspected fraud to the Better Business Bureau by calling (505) 346-0110 or visiting bbb.org/local-bbb/bbb-serving-new-mexico-and-southwest-colorado.
For the latest information on New Mexico's recovery from the wildfires and flooding, visit fema.gov/disaster/4795. Stay informed by following FEMA Region 6 on social media at x.com/FEMARegion6 and facebook.com/femaregion6.
