Elon Property Management credit report fees $500K class action settlement

Elon Property Management agreed to pay $500,000 to resolve claims it violated federal law by charging credit report fees.

The settlement benefits individuals who were tenants at a Elon Property Management property and paid Rental Payment Reporting Fees to the company since June 23, 2017 (four years before the class action lawsuit was filed).

Elon Property Management offers full-service property management to over 17,000 units across the country. The company’s services include on-site property management, accounting, asset management, training, human resources, acquisitions and more.

According to a 2021 class action lawsuit, Elon Property Management violated federal law through its “Credit Builder Program.” Through this program, tenants could pay a $5 monthly fee to have their timely rental payment reported to credit reporting agencies — thereby increasing their creditworthiness. 

Although this program is not illegal, tennants say Elon Property Management failed to provide the disclosures required by the federal Credit Repair Organizations Act (CROA). The CROA protects consumers from misleading credit repair schemes by requiring affirmative disclosures in credit repair advertising and sales. The act also prohibits companies from requiring advanced payment, requires written credit repair contracts, and grants consumers cancellation rights.

Elon Property Management allegedly failed to comply with CROA requirements when offering its Credit Builder Program. As a result, consumers sought damages from the company.

Elon Property Management hasn’t admitted any wrongdoing but agreed to resolve these allegations with a $500,000 class action settlement.

Under the terms of the settlement, class members can receive a check or a rent credit. Each class member will receive a proportional share of the net settlement fund based on the number of fees they paid compared to the total number of fees paid by the entire class. 

Current tenant class members will receive a one-time rent credit equal to their pro rata share of the settlement fund. 

Former tenants will receive their share of the settlement fund in the form of a check sent through the mail.

The deadline for exclusion and objection is Sept. 27, 2022. 

The final approval hearing for the credit report fees settlement is scheduled for Nov. 4, 2022.

No claim form is required to benefit from the settlement. Class members will receive benefits as described above as long as they do not exclude themselves, but may update their address on the settlement website.

Who’s Eligible

The settlement benefits individuals who were tenants at a Elon Property Management property and paid Rental Payment Reporting Fees to the company since June 23, 2017 (four years before the class action lawsuit was filed).

Potential Award

Varies

Proof of Purchase

Proof of purchase not applicable

Exclusion and Objection Deadline

09/27/2022

Case Name

Patricia Yost v. Elon Property Management, Case No. 1:21-CV-01520-CCB in the District Court for the District of Maryland, Northern Division

Final Hearing

11/04/2022

Settlement Website

YostClass.com

Claims Administrator

American Legal Claim Services, LLC
5985 Richard Street, Suite 3
Jacksonville, Florida 32216
904-517-1446

Class Counsel

Robert W Murphy
LAW OFFICE OF ROBERT W MURPHY

Jane Santoni
SANTONI VOCCI & ORTEGA LLC

Defense Counsel

Charles K Cooper
WEINER BRODSKY KIDER PC