NEWS RELEASE

Media Contact:
Renee Beauregard 303-400-3456
Ken Scott 713-682-1382, pager 1(800) 901-4418

Consumers United Association
Warns Wildfire Disaster Victims Be Aware of Scams

Denver, CO - July 1, 2002 -The disaster created by wildfires can be devastating. Consumers United Association (CUA) warns Coloradans affected by the fires to be aware that scam artists are in the area causing their own brand of disaster. They often arrive on the scene before the fires have been put out.

The damage to home and property is more than enough of a burden for Colorado consumers. "People are out there willing to take advantage of an emotional situation in order to make money," said Renee Beauregard, executive director, Consumers United Association. CUA provides the following tips for consumers to avoid the additional disasters offered up by scam artists.

Tips to avoid fraudulent charities.
Ask questions. How will the money be used? What percentage of the money is used for the intended purpose? What types of programs are offered?
Request written materials from the organization. Check out the organization with the Better Business Bureau (303) 758-8321 or www.denver.bbb.org.
Do not give in to pressure to give money on the spot. Don't give cash. Write a check made out to the organization.

Tips to recognize a potential fire damage repair scam.

• Unsolicited offers door to door
• Suggestions of a better than usual deal
• Refusal to put an estimate in writing, sign a contract or give references
• High pressure sales tactics, asks for an immediate decision
• Requirement for a large payment in advance

Consumers United Association recommends that homeowners:

1. Contact your insurance company first. Review your policy coverage and determine what you must do to file a claim. Take photographs of the damage to your home to assist in the claim process.

2. Make sure to get in writing all estimates for repairs and take the time to thoroughly review. Get several estimates for the required work. As much as you would like your home to return to normal, do not act in haste or yield to high-pressure tactics.

3. Contact the Better Business Bureau and check out any contractor that you are considering hiring. The BBB will verify that the contractor is licensed, bonded and insured. It will also let you know if there are complaints filed on the contractor. Before hiring a contractor, make sure he or she has the proper licenses to do business in your city or town.

4. Be wary of a contractor who asks for the full amount up front. Reputable contractors often require customers pay a portion of the total cost up front, but only a reasonable percentage, not the total amount. Also, do not pay in cash.

5. Report any person who attempts to take advantage of you to the Colorado Consumer Line at 1-800-222-4444 or in the Denver Metro Area at 303-222-4444.

6. Cover all the bases. Disaster assistance from the state of Colorado and the Federal Emergency Management Agency (FEMA) may be available to residents who have property or personal belonging losses not reimbursed by insurance as a result of the fires. To register call toll-free 1-800-621-FEMA (3362), or 1-800-462-7585 (TTY) for the hearing and speech impaired. Operators will be available from 8 a.m. to 6 p.m. MDT seven days a week until further notice.

Consumers United Association (CUA) is a nonprofit consumer advocacy association serving consumers in Colorado. Our mission is to improve the financial lives of consumers by providing financial education and advocacy. CUA offers services and resources to aid consumers in the resolution of consumer problems and provides a united voice for consumers in the legislative arena. For more information visit www.cuacolorado.org.