Reservation Denied

I just got off the phone with reservation desk about a reservation I made with them for a room at redroof inn on August 22.
Just one to three days after we lost our van/home I called the reservation desk to make reservation for a room for the night. I made the payment, but when I got to REDROOF they denied me a room cause I had no ID. I tried to explain that my ID was burned in a fire and they turned me away.
Now mind you I had already paid for the room, but never got to use it as I had no ID. I called the reservation service to explain the situation and told them I wanted a full refund as I was refused at the motel. Now here is the problem if I cancel the reservation I incure a cancelation fee so when I told them what was going on I told them that I was not the one canceling the reservation and I did not want to be charged for canceling.
The reservation was made on August 22 and paid for and its now September 14 and I still have not received my refund. This is also my third call to this reservation service so I'm just wanting to warn anyone that finds their self in this Sam position be very careful when you use these services cause REDROOF threatened to call the police if I didn't get off there property. So now the have my money and I never got the room and still sleeping in the streets cause I can't afford to pay to get a room even for one night.
Even Days inn advertises rooms for $91 a night, but then you ad a $5 per pet deposit and then tac on $20 for taxes and service fees and you pay more then is advertised. Apparently to get a room at Days inn we would need to have $130 which would leave us NO MONEY to eat on so what does one do when you can't even get a cheap room or get ripped off with service refusal after they take your money.