FEMA Gives Man Disaster Aid, Now Wants It Back With Interest & Fees

Source: www.federaljack.com...

(NED HIBBERD) A victim of Hurricane Ike who got assistance from FEMA now says that “helping hand” has become a slap in the face.

Clay Gates applied for federal funds after Ike pushed four or five feet of saltwater through his La Porte home.

Gates says he jumped through hoops, showing officials every picture and document they asked to see.

“We got a letter saying, ‘Hey, you qualified for this amount of benefits,’” Gates recalled. “And the next thing you know they direct-deposited money in our account.”

In all, Clay Gates and his family received close to $23,000. He says he was frugal with this gift from the government. “We’ve done all the sheetrock, we’ve done all the painting, we’ve done everything ourselves so we could at least use the money the best we could, to get ourselves back up to square.”

They’re still not quite there. Gates roughed in the stairs to the second floor. They’re bare wood: functional, but not up to code. But now, three years after the storm, FEMA wants its money back, saying Clay Gates was ineligible for assistance all along. “We’re figuring we’re going to lose our home,” said Gates.

“We’re going to lose everything we have. We don’t know what to do.” Gates appealed but on September 24, 2011, FEMA sent a letter attempting to recoup $22,989. Six days later, the US Treasury Department sent another letter saying Gates now owes $31,442, with fees, interest and penalties. He has ten days to pay it.

Yet another example of "Tough luck, we know we are wrong but you got to pay up regardless" coming from a gov't agency. How is this guy suppose to meet the ridiculous "demands" of FEMA? Is there no oversight for such mistakes?

FEMA claims to be running on fumes with their disaster relief funds, why not take some from the military world conquest budgets and put it into the disaster relief fund?
Answer: There's no profit in that.

Natural disasters are on the rise, yet money allocations are at all time ridiculously illogical levels. Pouring money into the military and ignoring domestic issues seems to be the norm these days.

Someone in the Obama regime must have found out he either registered as a Republican, or donated money to the Republican Party.

Or maybe he refused to include solar panels in his rebuilding project?

Stuff like this does happen.

This really sucks but at the same time, had he not asked the government for a hand out in the first place, he would owe them nothing.

This is what private insurance is for, why didn't he have proper insurance considering where he lived? Smaller and less intrusive government begins when people stop asking and taking federal assistance which is to say..... Taxpayer assistance.

I know Britain is different but don't you pay for these services, and indeed fund these services, through your taxes?

reply to post by Helious


I agree, and flood insurance is usually separate from normal homeowners insurance. Some areas don't offer flood insurance for high risk areas though, so FEMA is some people's only hope for assistance.
I don't know if he was eligible for flood insurance or not, but I think he doesn't seem like the type that would go to FEMA for relief unless it was his only option, 1st choice logically is insurance, last choice is gov't aid.

Make a deal with the devil and you get burned.

When a G-man hands you a check you best rip it up.

they will end up taking the house then all the repair labor will have been free (for fema).

nice con.

The government takes our money and gives it away to the banks, other countries or wastes it on something stupid. They have no problem with that. But if your a hard working american that got money, then its a mistake and the government can't have that.

I would rather my tax money goes to this guy or some old lady that can't pay her bills than have the government use it to buy guns for the drug cartels. Im all for helping other americans that in need, unless its some ho with 6 kids waiting on a welfare check. (like the ones that have been on Maury 5x and still doesn't know who any of the fathers are).

reply to post by JibbyJedi

FEMA claims to be running on fumes with their disaster relief funds, why not take some from the military world conquest budgets and put it into the disaster relief fund?
Answer: There's no profit in that

No profit?

In all, Clay Gates and his family received close to $23,000.

the US Treasury Department sent another letter saying Gates now owes $31,442, with fees, interest and penalties. He has ten days to pay it.

$8442 screwed out of Gates sounds like a profit.

That's around 10% profit per annum over the 3 years.

No many investments return 10% annually.

reply to post by acrux

$8442 screwed out of Gates sounds like a profit. That's around 10% profit per annum over the 3 years. No many investments return 10% annually.

I agree, there is profit is screwing the helpless. I said there is no profit is pouring funds into the relief effort money.... oh, I get what you're saying, and if that's the case, that's some serious peanut counters at work there.

If FEMA was the one who screwed up giving Gates the money (saying he was ineligible in the first place), why would Gates be the one responsible for penalties and interest? It wasn't his mistake for applying, right? Not that I agree with FEMA. Just wondering.

reply to post by celestialpink


The FEMA representative that spoke to him said - sorry, you're right, but it's too late, something something FBI has it now blah blah blah. Like the farmers fighting Monsanto, it sounds like they'll confiscate his assets and/or tax returns until he resolves the matter in court YEARS later, then is reimbursed "without" interest.
That's how it goes in the legal system, stay away from all government loans.