Summer repairs bring out warnings about contractor frauds

By Robb Hicken/ chief storyteller

James Quiggle, director of communications for the Coalition Against Insurance Fraud, knows a thing or two about tragedy.

Five years after a tornado ripped through Joplin, Mo., the coalition continues monitoring how homeowners are putting their lives back together.

“After any disaster, there’s almost always fraudulent claims, shady contractors taking advantage of the situation,” Quiggle says. “We’re trying to see what’s happening.”

Most contractors are honest, but incompetent ones typically go door-to-door, he says. They’re trying to cheat honest homeowners who need repairs often urgently after a storm ― or for routine seasonal mixups.

“Homeowners could lose thousands of dollars to contractor scams, and have big headaches fixing bad repair work,” Quiggle says.

Homeowners also could face large expenses if their insurance policy doesn’t cover fraudulent repairs, he says.

Six Ways to Fight back

• Avoid door-to-door contractors. You’re risking a world of trouble. Legitimate contractors normally are too busy to knock on doors.
• Verify license. Contact your state and local licensing agencies to make sure the contractor is licensed.
• Contact local Better Business Bureau. Does the contractor have a history of complaints? See if the contractor has a BBB review.
• Work with your insurance company &  agent. Don’t let the contractor do the talking. Work directly with your insurer to assess the damage and decide what repairs are covered. Get the right repairs done, and done right.
• Insist on a contract. Have a signed contract specifying exactly what work will be done, plus the price and repair schedule. Never sign a contract with blanks.
• Watch for red flags. No business cards or referrals… P.O. Box instead of a street address … van looks rundown and has no company name … poor personal appearance … can’t show proof of workers compensation insurance or surety/performance bond.

LinkedIn users under attack by phishing email; avoid request to connect from strangers

By Robb Hicken/ chief storyteller

LinkedIn has always been one of those safe places for B2B discussions and social media communications. Not anymore.

According to several websites, phishing emails are circulating that seem to come from LinkedIn. The emails seem to be an invitation reminder about an outstanding request to connect, but the links provided in the email do not take you to your waiting connection’s request.

The hyperlink takes you to a webpage that installs a variant of the ZBot malware (also known as Zeus) to your computer. Once the malware is downloaded, you run the risk of remote hackers compromising your computer and potentially stealing your confidential data.

To stay safe on LinkedIn:

• Delete suspicious emails immediately.
• Do not click on any links or download attachments in suspicious emails. These links and attachments can expose your computer to spyware, malware and other viruses.
• Make sure you protect your computer with good quality, anti-virus software and scan your computer for viruses often.
• Be careful how much personal information you share online because you do not know who is reading it and what their intentions may be.
• Use the website’s privacy settings to control who is able to see the information you post online.

Get more details here!

Debt collectors have rules, too! Know your rights

By Robb Hicken/ chief storyteller

Boise resident Vicki Winkel has lived in the same neighborhood for a long time. She enjoys her neighbors, the setting and the friendships she has developed over the years.

With all the changes in the housing market, a few of the homes have changed hands, and families have moved out, she says. But, the area remained quite friendly.

It was odd, but seemed legitimate, when she received a call from a 916- area code. Winkel says she’s grown more accustomed to not answer the phone when caller ID shows it as a number she’s unfamiliar with, but on this night she simply answered.

“A young pleasant lady told me she was trying to get a hold of Becky-something, I can’t remember her last name but the gal spelled it to me,” Winkel says. “She was a neighbor of mine and gave me the address.”

The young woman asked if I would take a note to Becky and have her call her back. She then gave her a phone number and spelled out her name.

“[The caller] said she knew it was a big favor to ask but would appreciate it,” she says.

The message was actually a memo from a collection agency in California. When Winkel discovered she’d been used, she was furious.

Such practices are not illegal and collection agencies are using any measure possible to locate, track down and find delinquent debtors. In this instance, the agency used Internet reverse directory program, 411locate.com that can name neighbors at a specific address.

The collection agency did not break the law, and since Winkel didn’t owe the debt, she was under no obligation to follow through with the request. Federal and state laws require businesses (banks, credit card, retail companies)   and debt collection agencies to follow certain rules.

Debt collectors may contact a debtor in person, by mail, telephone or fax. They cannot contact them at unreasonable places or times, or so often it disturbs their daily life. They may not contact debts at work if the employer disapproves of personal calls. If the original creditor has released the debt to a third-party collector, the debtor can send a letter by registered mail to ask no contact at his/her place of business. By law, the company must comply. Debt collectors may not give debt information to anyone except the debtor or an appointed lawyer. They may not threaten violence against the debtor or his property, use obscene or abusive language, or advertise the debt.

Additionally, a debt collection agency:

• may not misrepresent the truth.
• cannot use a false company name or creditor name, or release untrue information about you.
• cannot insinuate you have committed a crime or that there will be legal repercussions if you do not pay a debt.
• must send a written notice, within five days of first contact, detailing the amount owed with information about the original business or lender to whom you owed the debt.

Winkel says she called the collection agency and spoke to the agency manager who told her it is legal in Idaho.

Idaho Department of Finance monitors debt collection agencies. A spokesman agreed this may border on unethical, but it is not illegal.

“There’s nothing that would prevent them from [contacting a neighbor], and there is no regulatory rule to prevent it,” says Department of Finance examiner Dan Kline. “The collection agency can contact the neighbor or anyone they think may know the individual who owes the debt, but should not disclose any personal or financial information.”

Licensing regulation varies on the status of the collection – third-party or a first party collection, he says

Annoyed with the collection tactics, Winkel is now more suspicious of pleasant, nice strangers contacting her over the phone.

“So I’m only out the cost of the long distance call back to California – a couple of bucks – but jogged my memory about not answering the phone,” Winkel says.