$3M United Dominion Realty Settlement Resolves Class Action Lawsuit Over Late Rent Payment Fees

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United Dominion Realty (UDR) has agreed to pay a $3 million settlement to resolve a proposed class action lawsuit over allegations that the apartment management company unlawfully charged tenants “unreasonable” late rent payment fees.

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The official website for the UDR class action settlement can be found at ResidentialLateFeeSettlement.com.

The $3,000,000 settlement agreement covers all California residential tenants in a UDR property who, between August 12, 2017 and October 24, 2024, were charged or paid at least one late fee imposed by UDR.

According to the website, current tenants as of October 24, 2024 who paid a late fee are automatically entitled to receive a share of the settlement fund by check and are not required to submit a claim form. Current tenants should only file a claim if they prefer to receive a UDR settlement payout via PayPal, Zelle or Venmo or as a credit to their account, the site relays.

Former tenants as of October 24, 2024 who were charged a late fee must submit a timely, valid claim form to receive a settlement rebate, the website says.

Claim forms must be filed online or by mail by March 3, 2025.

Eligible class members can submit a claim form online on this page. To file electronically, consumers will need their unique login and password found on the personalized settlement notice issued to them.

Alternatively, class members can download a PDF claim form to print and return by mail.

Individual payments will be pro-rated based on the total amount of late fees a tenant paid, the settlement agreement states.

The deal with UDR was preliminarily approved by the court on October 24, 2024. Next, the court must determine whether to grant final approval to the terms of the settlement at a hearing scheduled for April 2, 2025. Cash payouts will be distributed to eligible class members only if the deal is ultimately approved, the settlement website notes.

The lawsuit against UDR claimed the property manager’s $100 late rent payment fee was an illegal contractual penalty imposed on tenants. The class action suit contended that UDR violated several California laws by charging and collecting “unreasonable” fees that were not an accurate approximation of the damage, if any, that UDR suffered due to late rent payments.

Are you owed unclaimed settlement money? Check out our class action rebates page full of open class action settlements.