NJ residents report Irene-related price gouging

TRENTON, N.J. - August 30, 2011

Allstate New Jersey Insurance Company says customers are calling with complaints that they've been charged thousands of dollars to pump water out of basements when it should have cost just hundreds.

Allstate says one senior citizen reported being charged $6,500, including $1,000 in cash, for two hours of pumping.

The state Division of Consumer Affairs says it is investigating about 10 complaints that have come in so far. Those include allegations of overcharging for bottled water and gasoline.

New Jersey law prohibits raising prices more than 10 percent during or after a state of emergency.

Customers who think they may be victims of price gouging should call consumer affairs at 1-800-242-5846.

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