Disaster Preparedness: Important Steps to Safeguard Your Finances

Monitor Your Credit

After a natural disaster or emergency, you might encounter unforeseen challenges with your credit reports and scores. For instance, any agreements you reach with lenders or credit card companies to lower your payments might not be accurately reflected in your credit report. If the lender has also been impacted by the disaster, they may struggle with their own record-keeping.

You are entitled to a free credit report from each of the three major credit reporting agencies at least once every year. Additionally, until the end of 2026, Equifax is allowing consumers to obtain six extra free credit reports annually. When you visit the website, you'll find instructions for accessing more frequently updated reports online. This offers you multiple chances to check your credit, keep tabs on it, and request corrections for any inaccuracies.

You also have the option to request reports from other specialized consumer reporting agencies. As you work through recovery, you may encounter issues with tenant screening reports, bank accounts, or personal property insurance records.

Guard Against Fraud and Scams

While many individuals come together during crises, the likelihood of scams and fraud increases. To protect yourself after a natural disaster or emergency, it’s essential to ask detailed questions to help identify potential scams.

Warning Signs to Watch For:

• Individuals asking for upfront fees to assist you in claiming benefits or obtaining loans.

• Contractors offering repair services door-to-door, particularly those requesting advance payment or providing unusually large discounts.

• Scammers impersonating government officials, insurance adjusters, law enforcement, or bank representatives. Remember, legitimate government employees do not charge for assistance and will never request payment or sensitive financial information.

• Limited-time offers—beware of anyone pressuring you with urgency, as this could lead you to make hasty decisions you might later regret. Always take the time to thoroughly read and understand any documents before signing, and consider seeking advice from a trusted friend or legal advisor.

If someone attempting to sell you a product or service is evasive or unresponsive to your inquiries, it may be wise to look for alternatives. If you encounter issues with a financial product or service, you can file a complaint online or call (855) 411-CFPB (2372).

Be Cautious of Charity Scams

Scammers often exploit natural disasters to take advantage of individuals wanting to help. One prevalent scheme is charity scams, where fraudulent organizations solicit donations under false pretenses.

If you're looking to support a disaster relief effort, keep these tips in mind to ensure your contributions reach legitimate organizations:

• Be wary of unsolicited requests for personal or financial information. If you receive an unexpected call or email asking for payment on a donation you don’t recall making, do not engage further.

• Verify the charity through reputable third-party sources. Research the organization on trusted websites such as guidestar.org, give.org, charitynavigator.org, or your local Better Business Bureau.

• Trust your instincts—if you feel uneasy about a donation request or organization, it’s okay to refrain from contributing.

If you suspect you’ve been a victim of fraud, report it to your local law enforcement's non-emergency line. Additionally, you can report charity scams and financial misconduct to your state attorney general or the Federal Trade Commission.