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Consumer Affairs

Scam Artists Profit from Chinese Drywall Fears

Bogus tests, phony remedies being widely promoted, Florida warns


April 24, 2009
Florida Attorney General Bill McCollum is warning Florida homeowners affected by Chinese drywall to avoid scams related to the situation.

At least two types of fraudulent activity involving the defective drywall have been reported to the Attorney Generals Office by individuals in the building industry: bogus tests to determine the presence of the product and quick cure remedies which falsely claim to remove the corrosive properties of the product. The Attorney General cautioned homeowners not to fall victim to these scams and others which may develop.

According to authorities reports, when defective Chinese drywall is present in a house, a chemical process causes black corrosion to appear on copper air conditioner coils and non-insulated copper wiring. If the air conditioner coils are corroded black, there is a strong likelihood that defective imported drywall is present in the home.

Most homes that contain defective imported drywall were built between 2004 and 2008. If a home was not built during that time period it is unlikely that the product is present.

The Attorney General noted that a homeowner can determine if defective drywall is present in his or her home by asking the homebuilder or a qualified air conditioner technician to conduct a professional visual inspection. The presence of defective imported drywall cannot be determined by testing the air in the home.

Additionally, if the substance is found during a visual inspection, it cannot be remedied with a spray or an ozone generator. These products may make the problem worse.

Homeowners should be aware of and attempt to avoid the following scams which builders have reported to the Attorney Generals Office:

• Sale of bogus test kits. These can be expensive, often costing thousands of dollars, and are generally ineffective. The presence of defective imported drywall can only be determined through visual inspection.

• Solicited home inspections costing thousands of dollars by experts with no apparent qualification. Homeowners should beware of cold calls and door-to-door solicitors.

• Sale of sprays and applications which allegedly claim to miraculously cure the corrosion problem. Not only are these products ineffective, the addition of moisture may accelerate the corrosion problem.

• Sale of ozone generators. Ozone will actually increase the chemical reaction between the drywall and copper and the corrosion will be accelerated.

Task force needed?

Earlier this week, a Florida state senator said quick action was needed to avoid "a wave of hysteria" over Chinese drywall. Florida Gov. Charlie Crist should convene a task force to study the problem, State Sen. Dave Aronberg said. The task forces mission should be to determine the best way to remove and replace any defective drywall, and recommend whether new or revised state laws or regulations are needed, he said in a conference call with reporters.

"We need results urgently," said Aronberg, a lawyer, according to the Palm Beach Post. "Lengthy litigation and lawsuits are not in the best interest of Florida homeowners, who need help now."

Two U.S. Senators have already called for a ban on the importation of Chinese drywall, as reports of damage spread to five states. Sens. Bill Nelson (D-FL) and Mary Landrieu (D-LA) introduced a bill seeking a recall of affected drywall and a temporary ban on all drywall imported from China.

Nelson has called on the Consumer Product Safety Commission (CPSC) to determine the cause and scope of the problem, and to initiate a recall if necessary. He also called on the agency to draw up general drywall safety standards, noting that such regulations are not currently in place.

The CPSC began an investigation in February, which is continuing. The agency is trying to determine if consumers' problems are caused by sulfur-based gases coming from the drywall. If it finds a problem, the commission can place a moratorium on sales of some drywall.

Most of the complaints so far have come from Florida, Louisiana, Mississippi, Texas and Virginia, where builders weren't able to get enough domestic drywall to keep up with demand during the housing boom of the last decade. They turned to imported drywall from China, which many consumers say is contaminated with a sulfur compound that produces a rotten-egg smell and causes headaches, difficulty breathing and other health problems.

Aronberg and Walter Dartland, executive director of the Consumer Federation of the Southeast, said the task force would be a logical next step in the states attempt to deal with the problem. Crist's office said he is monitoring the situation and the state health department says it is planning to take air samples from homes containing Chinese drywall to determine how serious the problem really is.

The department earlier said it has determined that Chinese drywall, unlike its American-made counterpart, contains the compound strontium sulfide, which lets off the rotten egg smell reported by so many consumers.

In their bill, Sens. Nelson and Landrieu want the CPSC to study 10 samples imported from China since 2004 and used in houses in the affected states. They are also asking the Departments of Treasury and Housing and Urban Development to provide assistance, including mortgage relief, to affected homeowners. The senators note that in addition to the cost of repair, most affected homes have decreased in value. Under the proposal, the costs would be borne by the responsible parties, not American taxpayers.



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