The Westside Gazette

PAGE 16 • OCTOBER 3 - OCTOBER 9, 2024
Consumers caught in
illegal junk fee traps to
receive $48 million
FTC action ends nation’s largest singlefamily
home renter’s widespread abuse
By Charlene Crowell
The nation’s largest corporate landlord for single-family
home rentals (last month/recently?) was fined $48 million
by the Federal Trade Commission (FTC) for years-long
financial abuses of tenants. The firm, Invitation Homes,
also will be required to change its practices, and agree to
long-term monitoring of its rental activity.
According to the September 24 settlement, renters who
resided in one of Invitation Homes’ over 33,000 properties
between 2018 and 2023 will be the beneficiaries. Its rental
properties across the nation are located in both cities and
suburbs including – but not limited to: Atlanta, Chicago,
Dallas, Denver, Houston, Los Angeles, Miami, Minneapolis,
and Seattle.
“Invitation Homes, the nation’s largest single-family
home landlord, preyed on tenants through a variety of unfair
and deceptive tactics, from saddling people with hidden fees
and unjustly withholding security deposits to misleading
people about eviction policies during the pandemic and
even pursuing eviction proceedings after people had moved
out,” said FTC Chair Lina M. Khan in a September 24
announcement. “No American should pay more for rent
or be kicked out of their home because of illegal tactics by
corporate landlords. The FTC will continue to use all our
tools to protect renters from unlawful business practices.”
Founded in 2012, Invitation Homes’ initial public offering
(IPO) raised approximately $1.77 billion, making it and is
the second- largest real estate investment trust (REIT) IPO
in history, according to its website.
Regulators said Invitation Homes was guilty of anticonsumer
practices that included:
· Deceiving renters about lease costs including $500
‘reservation fees’ in addition to application fees. Since 2019,
Invitation Homes has collected more than $18 million in
application fees alone for deceptively priced houses;
· Charging undisclosed junk fees – costing consumers up
to $1,700 per year;
· Failing to inspect homes before residents moved in;
· Unfairly withholding tenants’ security deposits when
they moved out; and
· Other misrepresentations including total monthly
leasing price, property condition, and availability of
emergency maintenance,
In a related consumer alert posted on FTC’s website,
Larissa Bungo, a senior attorney, shared more details
documenting why the enforcement action is warranted.
“Landlords must truthfully advertise the prices and
services they’re offering, said Bungo. “The FTC says
Invitation Homes advertised an overall “worry-free leasing
lifestyle” and promised pre-inspected homes before move-in
and “24/7 emergency maintenance” for any issues, but failed
to deliver.”
Deeply Rooted
“Instead, new residents faced major issues like
sewage backup, broken appliances, and visible
rodent feces,” continued Bungo. “The promises
didn’t live up to the hype and, to add insult to injury,
according to the FTC, Invitation Homes wrongly
withheld some or all of renters’ security deposits for
things like normal wear and tear or damage that
was already there before renters moved in. Which is
also illegal.”
The fall settlement also marks a milestone
victory for consumer advocates that in recent years
have urged federal regulatory agencies to adopt and
enforce rules to better protect consumers from an
array of junk fees.
For example, in 2022, four national consumer
advocates – Americans for Financial Reform, the
Consumer Federation of America, the National
Consumer Law Center, and the Center for
Responsible Lending (CRL), jointly urged the
Consumer Financial Protection Bureau (CFPB), to
enact junk fee rules.
“Hidden fees and costs strip wealth from the
most vulnerable consumers who are struggling to
make ends meet,” wrote the advocates. “The most
impacted consumers often come from communities of
color already burdened by other predatory practices,
further exacerbating racial inequities… Disclosure
is intended to give consumers an opportunity “know
before they owe.” But that knowledge is worthless if
charges are imposed under circumstances that most
consumers would not expect even if, with hindsight,
the fees were disclosed.”
By early February 2023, junk fee advocacy grew
to involve more than 40 national and state consumer
advocates who together appealed to the FTC for its
own agency rules and actions.
Created in 1915, the FTC has two primary
missions: protecting competition and protecting
consumers. It is empowered to investigate as well as
prevent unfair methods of competition, and unfair
or deceptive acts or practices affecting commerce.
Consumers who suspect a company may be
engaging in fraud, scams or bad business practices
can share their concerns at https://reportfraud.ftc.
gov/.
www.thewestsidegazette.com
How to Apply for FEMA Assistance
in Florida After Hurricane Helene
WASHINGTON -- Florida homeowners and renters in 17 counties who had
uninsured damage or losses caused by Hurricane Helene may be eligible
for FEMA disaster assistance.
FEMA may be able to help with serious needs, displacement, temporary
lodging, basic home repair costs, personal property loss or other disastercaused
needs. Homeowners and renters in Charlotte, Citrus, Dixie,
Franklin, Hernando, Hillsborough, Jefferson, Lafayette, Lee, Levy,
Madison, Manatee, Pasco, Pinellas, Sarasota, Taylor and Wakulla counties
can apply.
If you applied to FEMA after Hurricane Debby and have additional
damage from Hurricane Helene, you will need to apply separately for
Helene and provide the dates of your most recent damage. Apply for
either storm online at DisasterAssistance.gov. You can also apply using
the FEMA mobile app or by calling FEMA’s helpline toll-free at 800- 621-
3362. Lines are open every day and help is available in most languages.
If you use a relay service, such as Video Relay Service (VRS), captioned
telephone or other service, give FEMA your number for that service. To
view an accessible video on how to apply visit Three Ways to Apply for
FEMA Disaster Assistance - YouTube.
FEMA’s disaster assistance offers new benefits that provide flexible
funding directly to survivors. In addition, a simplified process and expanded
eligibility allows Floridians access to a wider range of assistance and funds
for serious needs.
WHAT YOU’LL NEED WHEN YOU APPLY
• A current phone number where you can be contacted.
• Your address at the time of the disaster and the address where you are
now staying.
• Your Social Security number.
• A general list of damage and losses.
• Banking information if you choose direct deposit.
• If insured, the policy number or the agent and/or the company name.
If you have homeowners, renters or flood insurance, file a claim as
soon as possible. FEMA cannot duplicate benefits for losses covered by
insurance. If your policy does not cover all your disaster expenses, you may
be eligible for federal assistance.
For the latest information about Florida’s Hurricane Helene recovery,
visit fema.gov/disaster/4828. Follow FEMA on X at x.com/femaregion4 or
on Facebook at facebook.com/fema.
Hurricane Milton from FP
Just two weeks ago, Hurricane Helene brought more than
eight feet of water along the Gulf Coast and devastated the
community. Before Helene made landfall, NHC projected
a surge of 12 feet. Along with Hurricane Ian, Helene was
one of the only other two hurricanes where the NHC
forecast called for such drastic storm surge levels.
Storm surge threats from Milton
Though weather forecasters predict the storm to hit
the west coast by Wednesday night, Florida residents
should expect Milton to zig zag. Berg warns the NHC’s
predictions could be off by 60 to 70 miles, making the
landfall prediction difficult to pinpoint.
By the time the hurricane makes landfall, Milton’s
wind field is forecasted to double in size, intensifying its
impact on Florida’s west coast.
Since Florida’s west coast is more shallow, it’s likely
the storm will have a greater impact on the Gulf Coast and
create a more severe hazard. With little room to dissipate,
a storm surge cannot spread out and, instead, is quickly
pushed up onto the coastline, according to the National
Weather Service. Though Milton will impact both coasts,
the east coast’s surge is projected to reach around six feet.
Residents are advised to follow local evacuation orders
and take proper measures if they are in a surge area.
Forecasters have emphasized that all preparations ahead
of Milton should be complete by Tuesday night.
Times-Picayune reporter Kasey Bubnash contributed
to this report.
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Member FDIC. Equal Housing Lender. 1. Minimum credit score applies to purchase transactions only.