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Independent Voice

The Importance of Protecting Yourself from Fraud

Sep 25, 2020 12:00AM ● By Solano County District Attorney's Office

SOLANO COUNTY, CA (MPG) - Solano County District Attorney’s Office wants to alert residents who may have been impacted by the LNU Lightning Complex Fire to beware of potential construction fraud scams and price gouging during this difficult time. “As our community continues to deal with all of the devastation produced by the wildfires, our office remains committed to protecting our citizens as they rebuild,” said DA Abrams. 

Price Gouging
California’s price gouging law (Penal Code §396) makes it illegal to raise the price of certain goods or services by more than 10% after a state of emergency has been declared. This includes food, emergency supplies, medical supplies, building materials, storage services, hotel accommodations, rental housing, gasoline, and repair/reconstruction services or goods/services used for emergency cleanup.

Anyone who believes they have been the victim of price gouging may report it to our Consumer and Environmental Protection Unit at (707) 784-6859 or [email protected].

Construction Fraud
Construction Fraud is another area of concern in the wake of a disaster.  Such fraud may occur when those impacted by the fire seek to repair or rebuild and an unlicensed or licensed contractor fails to complete the necessary work, the work done is of poor quality, the contractor uses substandard material, or overbills.

Recommendations to protect yourself from fraud
Talk to your insurance agent.  They will provide you with an estimate for the cost to repair your property. Use this estimate when negotiating with contractors. If you have a question about your insurance or a dispute with your insurer, please contact the California Department of Insurance at (800) 927-4357 or through their website www.insurance.ca.gov;

Check the references of the contractors you are considering, especially if the contractor is someone you are not familiar with or contacts you in an unsolicited manner;

Always verify that a contractor is licensed. Contractors licenses can be verified by contacting the Contractors State Licensing Board at (800) 321-2752 or www.cslb.ca.gov;

Beware of contractors that want you to spend money on temporary repairs.  These repairs may count toward your total insurance settlement and end up reducing the amount of funds available to make permanent repairs;

Don’t be rushed into signing a contract.  The best practice is to interview several contractors and get several bids.  Make sure you read the fine print on any estimate or contract prior to signing;

Try to hire a local contractor with a known reputation when possible. It is easier to work with a local contractor if problems occur;

Always get the job details in writing and make sure the contract is written in terms you can understand. Any verbal guarantees or work to be performed should be spelled out in writing;

Never leave areas blank in the contract as they can be filled in later without your knowledge with unacceptable or unfavorable terms;

Never pay for an entire project in advance or before the work is completed.  California law states that “If a down payment will be charged, the down payment may not exceed $1000 or 10% of the contract amount, whichever is less.” (Bus. & Prof. Code §7159.5) Limiting the amount of payment a contractor receives up front will help to ensure that your work will be fully completed;

If excavation work is being done (including electrical, walls and sewers) make sure your contractor obtains all the proper permits and that a building inspector checks the work once it’s completed;

Many resources remain available to those affected by the fires. Solano County has established a Local Assistance Center where individuals can get information on obtaining county services, as well as resource information from other state agencies. The Local Assistance Center is located on the first floor of the County Administration Center at 675 Texas St, Fairfield CA 94533 and will be open for walk-ins from 9 a.m. to 5 p.m. through September 15, 2020, or by appointment at (707) 784-1575. www.solanocountyrecovers.org/agencies/local-assistance-center/.