The largest single-family rental home manager in the United States has agreed to pay over $48 million to settle allegations of deceptive practices brought by the Federal Trade Commission (FTC) and four states, including Indiana.
On Monday, Indiana Attorney General Todd Rokita announced a landmark $48.5 million settlement with Progress Residential LLC and its parent company Pretium Partners LLC. The FTC accused the companies of engaging in deceptive and unfair practices affecting renters, such as hidden fees, bad security deposit practices, and poor property maintenance.
“We will always welcome investment in housing and recognize the important role private capital can play in increasing opportunities for Hoosier families,” Attorney General Rokita said. “But no company, regardless of size or financial backing, gets a free pass to mislead consumers, impose hidden charges or treat tenants unfairly.”
As part of the settlement, the company will be required to clearly advertise rental prices that include all mandatory fees, standardize its security deposit processes, and cease misrepresenting property inspections. They must also respond to tenant complaints and allow tenants to post reviews and share their experiences.
“This settlement sends a clear message: If you do business in Indiana, you must deal honestly and comply with the law,” Rokita added.
The complaint was filed in the United States District Court in the Northern District of Georgia. The three other states involved in the settlement with the FTC were Arizona, Colorado and Utah.
Rokita’s office said its Consumer Protection Division and Homeowner Protection Unit helped investigate the companies.
