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A new study by Carfax shows that waves of flood damaged cars are washing up in areas all across the country. Over the last five years, the number of waterlogged wrecks revealed by Carfax Vehicle History Reports has doubled nationwide. Furthermore, massive increases have occurred in numerous states. Individual state results can be found in the table below.

“Our data shows a clear pattern of growth for those states within close proximity to the Gulf Coast or that have large populations and sprawling urban areas,” said Larry Gamache, communications director at Carfax. “Flooded cars are indeed on the move and consumers everywhere are at risk. However, using the information gathered in our database, and new resources like Carfax Xpert, used car shoppers can uncover some of the nasty secrets a car may be hiding.”

Water can fatally damage a car’s most important features – like the electrical and safety systems – causing airbags and antilock brakes to malfunction and effectively turning the car into a ticking time bomb. Under the Carfax Buyback Guarantee, cars purchased with Carfax Vehicle History Reports that do not contain DMV-reported incidents (salvage, flood damage, lemon, odometer problems) may be eligible to be bought back from Carfax.

With used car sales expected to top 44 million this year, consumers should be on high alert for signs of hidden damage and potential fraud.

“In the aftermath of Hurricane Katrina, an unprecedented effort was made by the auto industry to identify, process and report these vehicles, as well as warn consumers about the dangers of flooded cars,” added Gamache. “We are ever-vigilant in making sure our customers have the information they need to protect themselves. We urge anyone buying a used car to get a Carfax Vehicle History Report that qualifies for the Carfax Buyback Guarantee and have a mechanic thoroughly inspect the vehicle prior to purchase.”

Flood Damage Growth By State (2002 – 2006)

Posted under Automotive

The states of Alabama, Mississippi and Louisiana, along with U.S. Food and Drug Administration, the U.S. Environmental Protection Agency and the National Oceanic and Atmospheric Administration have analyzed hundreds of samples of fish and shellfish from the waters affected by Hurricanes Katrina and Rita.

To date, the data show no reason for concern about consuming seafood from the Gulf region due to the hurricanes. The samples were analyzed for chemical and microbiological contaminants that could have been introduced by the hurricanes. The extensive seafood tissue sampling occurred in an area from the estuaries of New Orleans to Gulf Shores, AL. The sampled areas included Lake Pontchartrain, Mississippi Sound, Mobile Bay as well as the offshore areas of the northern Gulf of Mexico. Additional monitoring is currently in progress and results will be announced as they become available.

While many oyster harvest areas have been tested and re-opened, other areas remain closed until routine sampling by existing state regulated Molluscan Shellfish Programs determines that oyster harvesting can resume. Current data from analyses of fish and other shellfish from these areas show no reason for concern.

Health officials advise that consuming raw seafood always poses a potential risk from bacterial and viral contamination. This risk can be reduced by thoroughly cooking seafood.

As always, fishermen should avoid catching seafood in areas with visible oil sheens or slicks, and should only harvest live seafood. Consumers should follow proper sanitary practices when handling and preparing seafood for consumption. Also, health officials advise that following simple guidelines is appropriate when preparing fish and seafood at any time, not only after a storm event. These guidelines include keeping seafood cold until ready to cook and thoroughly cooking seafood. Consumers can further reduce risk by not eating the skin or organs, such as crab “fat”. It is also recommended that broiling, grilling or poaching fish are healthy, low-fat methods of cooking.

For more information, contact the Louisiana Department of Health and Hospitals (Kathleen Golden, 1-888-293-7020), the Mississippi Department of Environmental Quality (Robbie Wilbur, 601-961-5277), the Alabama Department of Public Health (Dr. Neil Sass, 1-800-201-8208) or U.S. Environmental Protection Agency (Eryn Witcher 202-564-4355).

Posted under Health, Uncategorized

The Internal Revenue Service today issued a consumer alert about possible scams taking place in the wake of Hurricane Katrina and other recent natural disasters.

Such fraudulent schemes may be perpetrated through the telephone, Internet, e-mail or in-person solicitations. The IRS cautions hurricane victims and people wishing to make disaster-related charitable donations to avoid unscrupulous scam artists by following these tips:

The IRS has established a toll-free disaster assistance telephone number,
1-866-562-5227, specifically for hurricane victims. Whenever a matter involves tax relief or tax refunds, the first step a disaster victim should take is to call the IRS.

For others, donate to recognized charities.

Be wary of charities with names that sound like familiar or nationally known organizations. Some phony charities use names or Web sites that sound or look like those of respected, legitimate organizations. The IRS Web site at IRS.gov has a search feature that allows people to find legitimate, qualified charities to which donations may be tax-deductible. Legitimate charities may also be found on the Federal Emergency Management Agency (FEMA) Web site at fema.gov.

Don’t give out personal financial information — such as Social Security numbers or credit card and bank account numbers and passwords — to anyone who solicits a contribution from you. Scam artists use this information to steal your identity and financial resources.

Don’t give or send cash. For security and tax record purposes, contribute by check or credit card. Write the official name of the charity on your check.
“We encourage people to be prudent when they are solicited for disaster donations,” said IRS Commissioner Mark W. Everson. “Don’t be taken in by scam artists more interested in lining their pockets than helping others.”

Scam artists can use a variety of tactics. For example, some scammers operating bogus charities may contact members of the public by telephone to solicit money or financial information. In some cases, they may contact disaster victims and, claiming to be working for or on behalf of the IRS to help the victims file amended tax returns to receive tax refunds, attempt to get personal financial information or Social Security numbers that can be used to steal the victims’ identities or financial resources.

The IRS does not ask for personal identifying or financial information in unsolicited telephone calls or mail or via e-mail. Call the IRS toll-free number if you have any doubts as to whether someone is an IRS employee or to verify any information about taxes.

Additionally, bogus Web sites are currently soliciting funds for disaster victims, according to federal law-enforcement agencies. Such fraudulent sites frequently mimic the sites of, or use names similar to, legitimate charities, or claim to be affiliated with legitimate charities, in order to persuade members of the public to send money or provide personal financial information that can be used to steal identities or financial resources.

Members of the public may also have received e-mails that steer the recipient to bogus Web sites that sound as though they are affiliated with legitimate charitable causes.

Taxpayers suspecting disaster-related frauds can:

Report the fraudulent use of the IRS name to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484.

Report other fraudulent contacts either to the Federal Bureau of Investigation (FBI) at 1-800-CALL-FBI (1-800-225-5324) or to the Federal Trade Commission’s (FTC) Consumer Response Center at 1-877-FTC-HELP (1-877-382-4357) (TTY/TDD 202-326-2502).

Posted under Privacy

Mississippi Attorney General Jim Hood filed a complaint September 15 in Chancery Court in Hinds County, Mississippi. The complaint seeks to declare null void and unenforceable certain provisions contained in property casualty insurance properties that exclude coverage from Hurricane Katrina.

The Complaint states that the issuance of such policies violates the Mississippi Consumer Protection Act and seeks the Court to issue a Temporary Restraining Order providing their issuance.

Posted under Customer Service

Free Carfax Flood Checks (www.carfax.com/flood) are now available to help prevent consumers from unknowingly buying a flood-damaged car.

“Anyone buying or selling a used car needs to be aware of potential problems that may exist,” says Larry Gamache, communications director at Carfax. “We’re committed to providing our customers with the resources they need to protect themselves.”

Carfax also has developed an advisory that identifies any vehicle last registered in a Federal Emergency Management Agency (FEMA) disaster area. The advisory will appear through the Flood Check and Carfax Vehicle History Report for applicable vehicles.

Current estimates are that 571,000 cars may have been destroyed following Hurricane Katrina and could be significantly higher because of Hurricane Rita. Over the coming months, Carfax will be working with law enforcement, state agencies and private companies to make sure all of these vehicles are properly branded.

Posted under Automotive