Hurricane Katrina: Legal Issues - Columbus School of Law

institutions to determine, and verify if their clients have been affected by the hurricane. This system of identifying
affected areas by zip code has been the standard used for modern natural disasters that occur in the U.S. today, and
has not differed significantly for Hurricane Katrina. To find out whether or not a zip code has been declared a
disaster area, log onto: www.fema.org.
Have there been an increase in Credit Card scams or fraud as a result of Hurricane Katrina?
As in most disaster situations, there tend to be an increase in fraud and scams, however, credit card companies are
aware that this activity increases with disaster situations, and use counteractive measures to detect and eliminate
increased fraudulent activity. For instance, American Express’ fraud detection division, labeled their “Security Team”
has been closely monitoring the accounts of Hurricane Katrina victims for any possible unusual activity. By doing so,
they have been able to prevent their card holders from paying for others’ illegal activities. For more information on
American Express security measure, contact their division for Communication and Community Affairs at: (954) 503-
3091.
Credit Card Company Contact Information
What are credit card companies and banks doing to help alleviate the current and future debts of their
clients?
Overall, the major credit card companies are using similar measures to help customers manage their debt both in the
immediate aftermath, and to some extent long term. Most companies are offering some type of temporary payment
suspension for between 30 and 90days for their affected customers to help manage current debt. And to help mitigate
their customers’ future debt, most companies have begun waiving certain service charges and fees. Specific company
offers are listed below, based in large part from information gathered through The Financial Services Roundtable.
Additional information can be found at their website: www.fsround.org. For more information on what your credit
card company can do for you, please contact the companies directly.
All financial institutions, credit card companies included, are urging anyone affected by Hurricane Katrina to get in
touch with them immediately. This way, the company can work with the client and establish a debt payment plan as
early as possible. The earlier a client contacts their financial institution, the more assistance the institution can offer.
AMERICAN EXPRESS
www.americanexpress.com (800) 333-2639
American Express is currently providing assistance not only to their own card members, but to the families of their
card members as well. They have waived late fees for all current balance payments, as well as current and future
overdraft fees (for a limited period of time). In addition, American Express has automatically granted extensions of
credit to their affected customers. Also, card members who have family affected by the hurricane can use their credit
cards as debit cards, draw upon their accounts, and wire the money to family through a deal worked out with Western
Union and Moneygram. From a less financial perspective, American Express has been actively involved in helping
their clients acquire available lodging, facilitating check-in, and even helping with prescription replacement and
medical referralsi.
CAPITAL ONE
www.capitalone.com (800) 955-7070
The Capital One Financial Corporation has been helping their clients by waiving fees for service charges as well as
past due, and overdraft fees. They have also been giving additional consideration to customers affected by the