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Thursday, March 28, 2024

Allegations of improper fees at housing around Penn State settled

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HARRISBURG, Pa. (Legal Newsline) — Hendricks Investments and its owner Rodney Hendricks have settled allegations of charging improper administrative fees and fines to tenants, many of whom were students at Penn State University, Pennsylvania Attorney General Bruce R. Beemer has announced. 

The Office of the Attorney General's Bureau of Consumer Protection originally looked into the matter and charged Hendricks with violations of the Commonwealth's Unfair Trade Practices and Consumer Protection Law, as well as the Landlord Tenant Act.


Hendricks allegedly made residents who entered a lease agreement pay a 15 percent administrative fee on any charges assessed against the security deposit, with the fee being deducted from the tenant’s security deposit upon completion of the lease. 

The Bureau for Consumer Protection alleged Hendricks used these business practices "for the sole purpose of enabling himself to not only retain the entire amount of the security deposit but to also routinely charge hundreds if not thousands of dollars above and beyond the amount of the security deposit upon termination of the lease."

Hendricks will pay $20,000 for costs of the case and $5,000 in civil penalties, plus restitution for eligible consumers and will change his business practices.

 

Senior deputy attorney general John M. Abel and deputy attorney general Jodi L. Zucco of the Attorney General’s Bureau of Consumer Protection filed the agreement.

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