Missouri Attorney General Chris Koster says he has obtained a consent judgment against a Joplin landlord for alleged price gouging and other violations in the aftermath of the May 22 Joplin tornado.
Koster said David Box, Jr., rents out apartments at Northside Apartments and Classic Townhouses. Following the May 22 tornado, Box notified tenants that their rent was being raised and required that they contact him within three days or their rental unit could be leased to someone else.
Koster said his office received complaints from 13 renters who had received the notice from Box. In one instance, a renter was notified his rent would go from $475 per month to $595 per month, a 25 percent increase.
Two other renters were notified their rent would go from $475 to $550 per month, a 16 percent increase.
“Unfortunately, there are always those who will take advantage of unsuspecting consumers during times of tragedy,” Koster said, “I want to continue to assure consumers that this office will be aggressive in going after those who engage in this illegal behavior.”
Koster said that under the judgment, Box is prohibited from:
* further violations of Missouri’s Merchandising Practices Law;
* conducting business under any name not registered with the Secretary of State;
* employing duress in raising rent;
* providing tenants with less than 30 days’ notice of any rent increase;
* requiring renters to make a decision on a rent increase within less than 7 days;
* charging an excessive price for a necessity within a disaster area; and
* charging substantially above market price.
In addition, Koster said Box is ordered to provide restitution to those harmed by his actions, and pay a $5,000 civil penalty and all court costs. Should Box violate any terms of the judgment, he will be assessed an additional $5,000 penalty.
And he must send his victims a letter of apology for using duress in a time of tragedy.