State College company will pay $10K to settle claims it took advantage of student renters
A company that rents property in State College and offers management services to Penn State students will pay $10,000 to settle claims it improperly collected administrative fees against tenant’s security deposits at the end of their lease.
The Pennsylvania attorney general’s office wrote in the settlement that Greek Housing Services Inc. failed to give students detailed information about actual damages.
The company was also accused of not telling tenants what was charged against their security deposit, leaving them in the dark with only general summaries.
“Students are often under financial restraints, and they do not expect their landlord to increase that burden by charging unlawful fees,” state Attorney General Michelle Henry said in a statement. “This landlord took advantage of students by requiring that tenants waive rights to which they were lawfully entitled, then proceeded to charge illegal fees.”
The settlement barred the company from collecting any administrative fees against tenant’s security deposits. It also required it to give tenants a detailed invoice about damages and accompanying charges within 30 days of the lease ending.
The restitution payment is set to go to those who file a valid complaint. The amount, timing and manner of payment is set to be decided by the attorney general’s office.
Complaints may be submitted online at attorneygeneral.gov/submit-a-complaint. They must be filed before March 18.
If the $10,000 payment is less than what is claimed by consumers, the settlement is set to be paid out on a per person basis. Greek Housing Services admitted no wrongdoing in the settlement.
The business owned or managed 328 E. Fairmount Ave., 329 E. Fairmount Ave. and 420 E. Prospect Ave. — all of which operated as fraternities or sororities — between 2019 and 2022.
Administrative fees charged to tenants ranged from $22 to $67.50 any time a tenant had at least one reportable security deposit infraction, a prosecutor wrote in the settlement.
In a written statement, Greek Housing Services said it “strongly refutes” the allegations detailed in the settlement.
“However, GHS must also consider the time, energy, and expense of defending itself in what would certainly be lengthy, complex litigation,” the company wrote. “The (assurance of voluntary compliance) allows GHS to make a minimal payment and return to focusing on other business matters.”
The settlement is one of more than a handful of legal filings that alleged similar improper security deposit practices by State College landlords, dating back to 2019.
Most have settled, but one company largely won at trial. Centre County Judge Katherine Oliver ruled in favor of Associated Realty Property Management, writing in November 2022 that the attorney general’s office lacked evidence with several of its accusations.
Most of the litigation was brought by now-Governor Josh Shapiro, who took office as attorney general in 2017. He said in January 2020 that his office received more student housing and landlord complaints from State College than anywhere else in the state.