Financial counsellors warn of ‘disaster chasers’ targeting South East Queensland
Financial Counselling Australia (FCA) is warning communities across South East Queensland to be on high alert for so-called “disaster chasers”.
Insurers have told FCA there is an increase in reports of disaster chasers in recent months following the November storm.
Disaster chasers are often dodgy, opportunistic operators who appear after floods, storms or bushfires offering to manage insurance claims or carry out repairs. They often promise faster outcomes or bigger payouts. In many cases, they take a significant cut of any insurance settlement, leaving people worse off.
“Disaster chasers prey on people at their most vulnerable. They target them when they’ve just lost homes and possessions or are dealing with major damage and are desperate for help,” Louise Hayes, Coordinator of Disaster Recovery at Financial Counselling Australia, said.
“They promise quick fixes and bigger insurance payouts, but what we often see is people signing contracts on the spot and losing up to 30 per cent of their insurance settlement.”
Ms Hayes said these operators often door-knock neighbourhoods, target local social media groups and sometimes falsely claim they are working with insurers.
“They can be very pushy and persuasive, especially when people are exhausted and overwhelmed.”
Ms Hayes stressed that people do not need to pay anyone to lodge or manage an insurance claim.
“This is a service people can do themselves, or they can get help for free from an independent financial counsellor or contact their insurer for support,” she said.
Disaster chasers are increasingly using online community forums and local social media groups to target people directly.
“This behaviour is predatory. These businesses are actively seeking out people who are traumatised and vulnerable, making big promises and then taking a hefty cut of any payout,” she said.
Anyone affected by a disaster who is unsure about an offer or needs help with an insurance claim is encouraged to contact a free and independent financial counsellor.
About FCA
FCA is the national peak body for the financial counselling sector, advocating for fairer markets and supporting Australians in financial hardship. FCA works collaboratively with industry, regulators, and community organisations towards a fairer marketplace for consumers and small business owners.
About financial counsellors
Financial counsellors are qualified professionals who provide information, advice and advocacy to people in financial difficulty. Their services are non-judgmental, free, independent and confidential.
They are based in community organisations throughout Australia, from large charities to smaller community centres, as well as some local government agencies.
Media contact: Maura Angle [email protected]