After the Storm: Scams

Hurricane Info • New Orleans Lies in Ruins and a Nation is Poorer • Killer Katrina: Damage Worse Than Expected • Preparedness for Drivers & Boat Owners • FEMA, SBA Offer Financial Help • Food Safety • Preparing Your Home for a Storm • Keeping Food Safe During an Emergency • Hurricane Season Is Time to Review Insurance Coverage • Scam Artists Target Storm Victims • Charity Scams Follow Hurricanes • Class Action Charges Insurers Chiseled Hurricane Victims --- Emergency Numbers • To help victims, call American Red Cross, 1-800-435-7669 • To get help, call American Red Cross, 1-866-438-4636

September 10, 2004
Some victims of Tropical Depression Gaston, which caused heavy damage in the Richmond, Va., area, are being victimized a second time, this time by scam artists. One person reported getting a call saying he would get a disaster grant, but "First I need your Social Security number."

"Individuals must begin the aid process themselves by registering with FEMA. That is the only way to apply for federal or state assistance," Michael Cline, Virginia Department of Emergency Management state coordinating officer for the disaster, said. "People should not give their Social Security numbers to callers they don't know. And notification of a grant will always come by mail."

The same precautions apply for Florida hurricane victims. Homeowners should be very careful about giving out personal information to anyone they don't know -- and should also be wary about letting anyone into their home.

For example, people who register for help at the Federal Emergency Management Agency (FEMA) telephone number may be visited by inspectors asking to inspect damage to their homes or businesses. All valid inspectors will have official ID to identify themselves. Individuals should never let anyone inspect their home without first asking for identification.

In Florida, Attorney General Charlie Crist filed a civil complaint against another hotel for price gouging and deceptive and unfair trade practices. The Attorney General's Office alleges that Baymont Inns & Suites in Naples charged "unconscionable," or substantially higher than regular, rates to consumers seeking a safe place during the brunt of the storm.

This is the fifth price gouging complaint filed against a Florida hotel since the state of emergency was declared and the seventh case filed overall.

"During a state of emergency, affected citizens need a helping hand, not a hand in their pocket," said Crist. "We will continue to target price gougers from Hurricane Charley and act upon those now being received following Hurricane Frances."

The inn, located at 185 Bedzel Circle in Naples, reportedly charged three consumers more at check-out than the price quoted to them when they made their reservations. The first consumer, a Naples resident who evacuated her home on August 13, received a quote of $53.99 per night.

During check-out three days later, the hotel charged her 33 percent more, $71.99 for the first two days, and $89.10 for the third day, or 65 percent above the quote. Her protest led to a reduction for the third day charges to $71.99, but the hotel refused to honor the $53.99 quote for the first two days.

A second consumer evacuated his Naples home, which had been left without electricity on August 13. He sought shelter at Baymont Inns & Suites, and was charged $93.60 after receiving a 10-percent AAA discount, and a quote for rates between $49 and $64 per night.

The third Naples customer, also left without power, had reserved a room at Baymont for herself, a friend and a dog at a quoted rate of $55 per night. After overhearing that there had been a price increase, she confronted the front desk about the matter and was informed that the charge was $99 per night. The clerk agreed to reduce the price to $79 per night, still 44 percent higher than the originally quoted price.

The civil complaints were filed under Florida's price gouging statute and the Florida Deceptive and Unfair Trade Practices Act, which are contained within Chapter 501 of the Florida Statutes. The price gouging statute delegates enforcement authority to the Attorney General and the Florida Department of Agriculture and Consumer Services, as well as the local state attorney. The two state agencies are working together to coordinate the complaints being reported by consumers.

Provisions of the price gouging statute took effect when Governor Jeb Bush declared a state of emergency on August 10, 2004. The Attorney General's Office continues to receive complaints at its price gouging hotline, 1-800-646-0444. The Department of Agriculture and Consumer Services number is 1-800-435-7352.

Florida's price gouging statute requires that the cost of necessities like food, water and shelter must remain at the price that was average during the 30 days immediately preceding a major storm like Hurricane Charley. Violations of the price gouging statute are subject to civil penalties of $1,000 per violation up to a total of $25,000 for multiple violations committed in a single 24-hour period. Florida's Deceptive and Unfair Trade Practices Act provides for civil penalties of $10,000 per violation or $15,000 for violations that victimize a senior citizen or handicapped person.

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