Attorney General Todd Rokita slams management firm with lawsuit over deceptive lease practices

Attorney General Todd Rokita slams management firm with lawsuit over deceptive lease practices

Attorney General Todd Rokita announced a lawsuit against IBIN Management, LLC, a property management company based in Crown Point, Indiana, for engaging in unfair, abusive, and deceptive practices in violation of the Indiana Deceptive Consumer Sales Act. The lawsuit, filed in Lake County Superior/Circuit Court, seeks injunctive relief, consumer restitution, civil penalties, and costs to protect Indiana tenants from misleading lease terms.  

"Hoosiers deserve fair and transparent treatment when renting their homes," said Attorney General Rokita. "This lawsuit sends a clear message: we will hold accountable those who exploit tenants with deceptive lease agreements that misrepresent their rights and obligations. Protecting Indiana consumers is a top priority for our office."  

The State of Indiana alleges that IBIN Management, LLC, which manages properties in Lake County, included lease provisions in their leases that violate Indiana law by misrepresenting tenants' rights and the company's legal obligations. Specifically, the lawsuit identifies at least seven deceptive lease provisions, including:  

• Misrepresenting the timeframe for returning security deposits, in violation of Indiana's clear 45-day itemization requirement.  

• Absolving the company of responsibility to deliver rental properties in a timely, safe, and habitable condition, contrary to Indiana law.  

• Denying obligations to enforce lease terms against tenants whose actions disrupt others' quiet enjoyment, which would adversely impact tenant quiet enjoyment of their leased property.  

• Attempting to waive tenants' rights to seek damages for the company's failure to provide essential services, such as heat, water, or electricity, which is explicitly disallowed by statute.  

• Imposing unlawful service fees for repairs that are the landlord's responsibility.  

• Allowing property access without proper notice to tenants.  

• Requiring tenants to indemnify the company for claims, including those caused by the company's own negligence.  

These provisions, found in leases for properties in East Chicago and Hammond, Indiana, violate the Indiana Deceptive Consumer Sales Act (Ind. Code § 24-5-0.5). The State seeks to permanently enjoin IBIN Management, LLC from engaging in these practices, as well as restitution for affected tenants, civil penalties, and investigative costs.  

"We are committed to ensuring that landlords and property managers play by the rules," Attorney General Rokita added. "We will continue to stand up for Hoosiers and fight against deceptive practices that harm our communities."  

The lawsuit highlights specific leases signed by tenants Keely Valentine, Ronica Stewart, and Joshua Guerrin for properties managed by IBIN Management, LLC in Hammond and East Chicago. The State believes additional affected consumers may be identified through further investigation.  

Hoosiers can contact the Office of the Indiana Attorney General about any suspected scams or scam attempts. Consumers can file a complaint by visiting indianaconsumer.com or calling 1-800-382-5516.

The lawsuit is attached here.

A headshot of Attorney General Rokita is available for download.

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