BLUMENTHAL & WARREN CALL ON FTC TO CRACK DOWN ON DECEPTIVE SECURITY DEPOSIT SCHEMES HURTING TENANTS

WASHINGTON, Oct. 8 -- Sen. Richard Blumenthal issued text of the following press release:

[WASHINGTON, D.C.] - U.S. Senators Richard Blumenthal (D-CT) and Elizabeth Warren (D-MA) wrote to Federal Trade Commission (FTC) Chair Andrew Ferguson calling on the FTC to investigate the emerging consumer protection issues posed by security deposit alternatives.

According to recent reporting by the New York Times, landlords and management companies are increasingly offering tenants security deposit alternatives, in which tenants are allowed to pay smaller monthly or annual fees that replace the traditional lump sum of a security deposit before moving in. While these alternatives seem helpful to consumers, they expose tenants to significant financia...