End Junk Fees for Renters Act
End Junk Fees for Renters Act aims to curb up-front and ongoing charges tenants pay in rental housing that receive federal support or are backed by federal mortgages. The bill would bar landlords of “covered dwelling units” from charging application and tenant screening fees, cap late fees, and require several disclosure responsibilities in lease agreements. It also creates specific definitions to determine which dwelling units fall under the law and designates which federal regulators would enforce the rules. Additionally, the bill directs the Bureau of Consumer Financial Protection (CFPB) and the Federal Trade Commission (FTC) to issue implementing rules within 180 days that define what constitutes a “junk fee” and to treat reported unpaid junk fees to consumer reporting agencies as an unfair or unconscionable debt collection practice under the FDCPA. Potential impact includes reduced upfront costs for renters, clearer and more consistent lease disclosures, and a stronger regulatory path to challenge unjust fees. Landlords and lenders with federal backing could face new compliance obligations and potential enforcement actions if they continue to charge prohibited or excessive fees.
Key Points
- 1Prohibits application fees and tenant screening fees for tenants applying to rent a covered dwelling unit.
- 2Caps late fees at less than 3% of monthly rent and requires that late fees apply only after 15 days past due; applicable lease disclosures must note these limits.
- 3Requires landlords to provide pre-signing disclosures, including total monthly amount due (with fees), a general history of past litigation with tenants (to the extent practicable), known pest/maintenance issues, and the property’s rent increases over the prior 10 years.
- 4Defines “covered dwelling unit” and who the “appropriate regulator” is (HUD for most units; VA, Agriculture, or FHFA for other federally backed scenarios), outlining which federal department or agency enforces the rules.
- 5Delegates rulemaking to the CFPB and FTC to (1) define “junk fee” for rental housing and (2) determine that reporting unpaid junk fees to consumer reporting agencies is an unfair or unconscionable debt collection practice under the FDCPA.