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Indiana Attorney General Todd Rokita has filed a lawsuit against a Crown Point property management company, accusing it of using deceptive lease practices.
The lawsuit, filed on July 17, alleges that IBIN Management LLC used lease terms that misrepresent the rights and obligations of the landowner and tenants and violate the Indiana Deceptive Consumer Sales Act, which prohibits unfair, abusive or deceptive acts in connection with a consumer transaction.
IBIN is registered as a business with the Indiana Secretary of State’s Office and lists a Crown Point post office box as an address. No other contact information could be immediately located for the company, but IBIN has 120 days to respond to the lawsuit.
“Hoosiers deserve fair and transparent treatment when renting their homes,” Rokita said in a press release. “This lawsuit sends a clear message: we will hold accountable those who exploit tenants with deceptive lease agreements that misrepresent their rights and obligations.”
According to the state’s complaint, IBIN:
- Misrepresented the timeframe to return security deposits, a violation, it claims, of the state’s 45-day itemization requirement.
- Absolved itself from landlord obligations to timely provide possession of the leased premises.
- Exempted itself from enforcing its lease against tenants whose actions impede another leaseholder’s “quiet enjoyment.”
- Attempted to require tenants to waive any claim against the landlord for “any injury or damage whatsoever which may arise or accrue from the absence of heat, air conditioning, electricity, or hot or cold water.”
- Charged unlawful service fees for repairs that are “the landlord’s responsibility.”
- Allowed landlords with property access without proper notice to tenants “at all reasonable times.”
- Required its tenants to indemnify IBIN for any claims, even those caused by the company’s negligence.
The state is asking Lake Circuit Court for injunctive relief, restitution for affected tenants, investigation fees and civil penalties.
According to the Rokita’s news release, the lawsuit highlights leases signed by three tenants from East Chicago and Hammond properties managed by IBIN.
Additional affected tenants may be identified with further investigation, the Attorney General’s Office said.
The case is State of Indiana vs. IBIN Management LLC, 45C01-2507-PL-000390.
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