Class action lawsuit filed against company behind sublease ‘scheme’ in Washtenaw County

A class action lawsuit was filed in Washtenaw County Circuit Court on January 12th against Grand Rapids-based Innovative Apartment Group, accusing them of a predatory subleasing “scheme.” Prosecutors allege the company targeted renters with low credit scores, promising credit repair but instead engaging in deceptive practices and excessive fees. Tenants reportedly paid up to $300 per month above market price, plus a $1,000 “risk fee,” while the company often failed to pay landlords, leading to evictions. The lawsuit further claims Innovative Apartment Group used aggressive debt collection tactics, even when no debt was owed. Washtenaw County Prosecutor Eli Savit stated, “Every renter in Michigan deserves to be treated fairly,” emphasizing the violation of Michigan law. One plaintiff, a single mother, paid approximately $3,000 in surcharges and fees and received an eviction notice despite making payments to Innovative Apartment Group. The Center for Civil Justice and the National Consumer Law Center are representing the tenants, alleging violations of the Michigan’s Consumer Protection Act, Credit Services Protection Act, Regulation of Collection Practices Act, and Occupational Code.

(Source：M Live Michigan )