Equity Residential $22.7M California Tenant Late Fee Settlement

Equity Residential $22.7M California Tenant Late Fee Settlement

Update: The settlement was granted final approval on July 24, 2026.

California tenants whom Equity Residential charged late fees for the first time between Sept. 3, 2010, and Oct. 28, 2022, or who had a non-Equity Residential lease but received late fees at the Woodland Park property in East Palo Alto, California, from Dec. 1, 2011 to February 2016 may be eligible to receive a partial refund or credit from a class action settlement .

Equity Residential agreed to pay $22,707,238.38 to settle a class action lawsuit alleging it charged unlawful late fees to California tenants. The lawsuit claimed Equity Residential’s late fee practices violated California law by imposing fees not reasonably related to the actual costs the company incurred when tenants paid rent late.

Who are the class members?

The settlement covers two main groups of tenants:

• Standard late fee class : All Equity Residential tenants in California whom the company charged a late fee of 5% of rent (minimum $50) for the first time between Sept. 3, 2010, and Oct. 28, 2022. This includes tenants who paid or received a charge for the fee during this period.
• Woodland Park preexisting lease class : All tenants with non-Equity Residential leases at the Woodland Park property in East Palo Alto, California, when owned by Equity Residential from Dec. 1, 2011, to Feb. 2016, and who received a charge of at least one $50 late fee during that time.

For both classes, tenants who paid the late fees by April 30, 2024, are eligible for a partial refund. Those who received a charge but did not pay late fees by that date are eligible for a credit or adjustment to their account or credit file.

The settlement administrator identified class members using Equity Residential's records. If a class member received a notice, they are likely included in the settlement.

For units with multiple tenants (cotenants), the settlement administrator will divide the award or credit equally among all class members associated with the lease.

Who is excluded from the class?

The settlement excludes class members who previously opted out of the class in earlier phases of the litigation.

How much can class members get?

Eligible class members who paid late fees by April 30, 2024, will receive a partial refund. The settlement provides for a refund of 87% of the difference between the total late fees paid and Equity Residential's actual cost of collecting late rent as determined by experts. Those who received charges but did not pay late fees by April 30, 2024, will receive a credit applied to their account or credit file calculated as the late fee minus a set cost offset.

• For late fees charged prior to May 1, 2022, the credit is the fee minus $22.51.
• For late fees charged on or after May 1, 2022, the credit is the fee minus $31.98.
• Standard late fee class : Refunds or credits based on the above calculations for late fees paid or charged between Sept. 3, 2010 and April 30, 2024
• Woodland Park preexisting lease class : Refunds or credits based on the above calculations for $50 late fees charged between Dec. 1, 2011 and Feb. 2016

No claim form needed to receive a payout

Class members do not need to file a claim to receive their payment or credit. Those who are eligible will automatically receive a check in the mail or a credit to their account or credit file. There is no online or mail-in claim form to complete. However, class members whose address has changed should update their information with the settlement administrator to ensure they receive payment.

For class members who will receive a credit rather than a payment, Equity Residential already provided or will provide the adjustment to their account or credit file. Those who paid late fees after April 30, 2024, but before moving out will receive a check to their last known address.