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How to avoid high FEMA check fees, price gouging in Houston

FILE - In this April 23, 2020, file photo, President Donald Trump's name is seen on a stimulus check issued by the IRS to help combat the adverse economic effects of the COVID-19 outbreak, in San Antonio. Hundreds of thousands of dollars in coronavirus relief payments have been sent to people behind bars across the United States, and now the IRS is asking state officials to help claw back the cash that the federal tax agency says was mistakenly sent. (AP Photo/Eric Gay, File) (Eric Gay, Copyright 2020 The Associated Press. All rights reserved.)

After Hurricane Beryl and the May derecho hit Houston, residents are facing difficulties cashing their FEMA checks due to potential price gouging.

KPRC 2 reporter Rilwan Balogun will share the story of a Houston woman who claims that some businesses are charging exorbitant fees to cash FEMA checks. Tune in at 5 and 6 p.m. for more details.

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SEE ALSO: Why FEMA may have denied your request for help after Hurricane Beryl

Price gouging is illegal, and the Texas Attorney General’s Office has the authority to prosecute businesses that engage in this practice after a disaster declaration.

Under §17.46(b) of the Texas Deceptive Trade Practices-Consumer Protection Act, it is illegal to sell or lease necessities at exorbitant prices during a declared disaster. If you suspect price gouging, you should file a complaint with the Attorney General’s Office.

How to cash your FEMA check without high fees

Retailers like Walmart and HEB display their check-cashing fees online.

Walmart charges a maximum fee of $4 for preprinted checks up to $1,000, and $8 for checks above $1,000. HEB charges fees starting at $3 for cashing government, payroll, dividend, insurance checks, and Western Union Money Orders purchased at HEB.

There are several check-cashing apps available that can be used to deposit checks directly into your bank account or onto a prepaid card. Apps like Ingo Money, PayPal, and others offer these services, though they may charge a fee. Compare the fees and terms to find the best option for your needs.

If you have an account with a local bank or credit union, they may cash your check for free or for a minimal fee. It’s best to call ahead and confirm their policies, especially in the aftermath of a disaster when demand for services might be high.


About the Author
Holly Galvan Posey headshot

Holly joined the KPRC 2 digital team in March 2024, leveraging her eight years of expertise in blogging and digital content to share her passion for Houston. Outside of work, she enjoys exploring the city's vibrant scenes, all while balancing her roles as a wife and mother to two toddlers.

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