<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"><head><meta http-equiv=Content-Type content="text/html; charset=utf-8"><meta name=Generator content="Microsoft Word 14 (filtered medium)"><style><!--
/* Font Definitions */
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
@font-face
{font-family:Consolas;
panose-1:2 11 6 9 2 2 4 3 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:11.0pt;
font-family:"Calibri","sans-serif";}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
p
{mso-style-priority:99;
mso-margin-top-alt:auto;
margin-right:0in;
mso-margin-bottom-alt:auto;
margin-left:0in;
font-size:12.0pt;
font-family:"Times New Roman","serif";}
p.MsoAcetate, li.MsoAcetate, div.MsoAcetate
{mso-style-priority:99;
mso-style-link:"Balloon Text Char";
margin:0in;
margin-bottom:.0001pt;
font-size:8.0pt;
font-family:"Tahoma","sans-serif";}
span.BalloonTextChar
{mso-style-name:"Balloon Text Char";
mso-style-priority:99;
mso-style-link:"Balloon Text";
font-family:"Tahoma","sans-serif";}
span.EmailStyle19
{mso-style-type:personal;
font-family:"Times New Roman","serif";
color:windowtext;
font-weight:normal;
font-style:normal;
text-decoration:none none;}
span.EmailStyle20
{mso-style-type:personal;
font-family:"Calibri","sans-serif";
color:#1F497D;}
span.EmailStyle22
{mso-style-type:personal-reply;
font-family:"Calibri","sans-serif";
color:#1F497D;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>I tell my clients to NOT charge a fee for making a claim on the Security Deposit and to NOT charge the tenant for the certified mail postage but I have nothing to back up why I am telling them this other than I feel it is unconscionable.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>It does not seem fair that the tenant is charged for something the landlord is required to do and send by law.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>I really would not like to see this decided in a class action. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>Is something like this allowed in other areas of law like foreclosures?<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>Yates v. Equity held that if it was not allowed in the Act, it was NOT legal as it pertained to termination fees. The only reason they are allowed now is because of the law change that specifically allows it. Prior to Yates, EVERYONE was charging termination fees and forfeiting security deposits for lease breaks. Yates rocked the multifamily housing industry.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>For anyone that was not around when Yates went down, that was a major case. Millions were paid out in that case and all the others that were settled.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>How far do we take this?<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>Are there any hard core consumer law lawyers and FCRA and FDCPA lawyers out there that will know whether “risk mitigation fees” are allowed?<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>I am really at a loss to advise clients and this stuff is spreading so fast. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>Harry<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>LAW OFFICES OF <br>HEIST, WEISSE, & WOLK P.A.<br>PH: 1 800 253 8428<br>FAX: 1 800 367 9038<br>"Serving the Property Management Professional"<br>Website: <a href="http://www.evict.com/">www.evict.com</a> <br>Email: <a href="mailto:harry@evict.com">harry@evict.com</a></span></b><span style='color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:7.5pt;font-family:"Arial","sans-serif";color:#1F497D'>THIS E-MAIL MESSAGE IS CONFIDENTIAL, ATTORNEY-CLIENT PRIVILEGED, AND INTENDED FOR THE PERSONS NAMED ABOVE ONLY. ALL OTHER USE, COPYING, OR DISTRIBUTION IS STRICTLY PROHIBITED.</span><span style='color:#1F497D'><o:p></o:p></span></p></div><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> landten-bounces@lists.flabarrpptl.org [mailto:landten-bounces@lists.flabarrpptl.org] <b>On Behalf Of </b>Leonard Cabral<br><b>Sent:</b> Saturday, October 26, 2019 12:21 PM<br><b>To:</b> RPPTL Landlord Tenant Committee<br><b>Subject:</b> Re: [RPPTL LandTen] "Risk Mitigation Fee"<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I am now seeing a fee for handling the security deposit. Any thoughts about the legitimately of that fee? <o:p></o:p></p><div><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>Sent by Leonard P Cabral <o:p></o:p></p></div><div><p class=MsoNormal><br><br><o:p></o:p></p><p class=MsoNormal style='margin-bottom:12.0pt'>On Oct 25, 2019, at 10:59 AM, Harry Heist <<a href="mailto:harry@evict.com">harry@evict.com</a>> wrote:<o:p></o:p></p></div><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><div><p class=MsoNormal> <span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>It seems like each day property managers are coming up with fees that I believe will eventually cause a problem and be class action material. </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>They are spreading as these managers are on all of these Facebook groups, someone says they are doing it and then everyone thinks it is OK.</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>The latest one I have been seeing is a “Risk Mitigation Fee”.</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>This is a nonrefundable fee that the higher risk tenant (bad credit, bankruptcy, eviction etc) is being asked to pay as part of being approved.</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>Often this “fee” is being kept by the property manager, split with the owner or given to the owner. More often than not, kept by the property manager.</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>Does anyone have any info on the legality of this?</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>In the money lending world, creditors are free to charge a higher interest rate to a higher risk person but this now????</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'>Harry</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;color:#1F497D'> </span><o:p></o:p></p><div><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>LAW OFFICES OF <br>HEIST, WEISSE & WOLK P.A.<br>PH: 1 800 253 8428<br>FAX: 1 800 367 9038<br>"Serving the Property Management Professional"<br>Website: </span></b><span style='color:#1F497D'><a href="http://www.evict.com/"><b><span style='font-family:"Arial","sans-serif"'>www.evict.com</span></b></a></span><b><span style='font-family:"Arial","sans-serif";color:#1F497D'> <br>Email: </span></b><span style='color:#1F497D'><a href="mailto:harry@evict.com"><b><span style='font-family:"Arial","sans-serif"'>harry@evict.com</span></b></a></span><o:p></o:p></p><table class=MsoNormalTable border=0 cellpadding=0 align=left width="100%" style='width:100.0%;margin-left:6.75pt;margin-right:6.75pt;margin-bottom:5.5pt'><tr style='height:19.9pt'><td width="16%" rowspan=2 style='width:16.3%;padding:1.5pt 1.5pt 1.5pt 1.5pt;height:19.9pt'><table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=360 style='width:3.75in;border-collapse:collapse'><tr><td width=64 valign=top style='width:48.3pt;padding:0in 5.4pt 0in 5.4pt'><p class=MsoNormal style='mso-element:frame;mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:paragraph;mso-element-anchor-horizontal:column;mso-height-rule:exactly'><a href="https://www.facebook.com/pages/Heist-Weisse-Wolk-PA/343965575625870"><span style='font-size:10.0pt;font-family:Consolas;color:#1F497D;text-decoration:none'><o:p></o:p></span></a></p><div><p class=MsoNormal style='mso-element:frame;mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:paragraph;mso-element-anchor-horizontal:column;mso-height-rule:exactly'><span style='font-size:10.0pt;font-family:Consolas;color:#1F497D'><a href="https://www.facebook.com/pages/Heist-Weisse-Wolk-PA/343965575625870"><span style='color:#1F497D;text-decoration:none'><image001.png></span><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:windowtext;text-decoration:none'><o:p></o:p></span></a></span></p></div><p class=MsoNormal style='mso-element:frame;mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:paragraph;mso-element-anchor-horizontal:column;mso-height-rule:exactly'><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p></td><td width=296 valign=top style='width:221.7pt;padding:0in 5.4pt 0in 5.4pt'><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-element:frame;mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:paragraph;mso-element-anchor-horizontal:column;mso-height-rule:exactly'><b><span style='font-size:12.0pt;font-family:"Arial","sans-serif";color:#1F497D'><br></span></b><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'>Visit us on Facebook</span></b><o:p></o:p></p></td></tr></table></td><td width="82%" valign=bottom style='width:82.74%;padding:1.5pt 1.5pt 1.5pt 1.5pt;height:19.9pt'><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:115%;mso-element:frame;mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:paragraph;mso-element-anchor-horizontal:column;mso-height-rule:exactly'><span style='font-size:10.0pt;line-height:115%;font-family:"Times New Roman","serif";color:#1F497D'> </span><o:p></o:p></p></td></tr><tr style='height:19.85pt'><td width="82%" valign=bottom style='width:82.74%;padding:1.5pt 1.5pt 1.5pt 1.5pt;height:19.85pt'><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:115%;mso-element:frame;mso-element-frame-hspace:9.0pt;mso-element-wrap:around;mso-element-anchor-vertical:paragraph;mso-element-anchor-horizontal:column;mso-height-rule:exactly'><b><span style='font-size:12.0pt;line-height:115%;font-family:"Arial","sans-serif";color:#1F497D'> </span></b><o:p></o:p></p></td></tr></table><p class=MsoNormal><span style='font-size:7.5pt;font-family:"Arial","sans-serif";color:#1F497D'>THIS E-MAIL MESSAGE IS CONFIDENTIAL, ATTORNEY-CLIENT PRIVILEGED, AND INTENDED FOR THE PERSONS NAMED ABOVE ONLY. ALL OTHER USE, COPYING, OR DISTRIBUTION IS STRICTLY PROHIBITED.</span><o:p></o:p></p><p class=MsoNormal><span style='color:#1F497D'> </span><o:p></o:p></p></div><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'>_______________________________________________<br>landten mailing list<br><a href="mailto:landten@lists.flabarrpptl.org">landten@lists.flabarrpptl.org</a><br><a href="http://mailman.fsr.com/mailman/listinfo/landten">http://mailman.fsr.com/mailman/listinfo/landten</a><o:p></o:p></span></p></div></blockquote></div></div></body></html>