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Senior Living Facilities Warned Against Charging Potentially Illegal COVID-19 Fees

  • Michigan AG Dana Nessel sent cease and desist letters to senior living facilities owner CSIG Holding Co. LLC, management company Senior Village Management LLC, and 11 facilities under their ownership and management (collectively, “CSIG”) alleging that COVID-19 fees charged to residents violated Michigan’s Consumer Protection Act (“MCPA”).
  • The letters allege that charging residents a mandatory $900 “supplemental COVID-19 fee” to purportedly cover expenses for meal services, personal protective equipment, and cleaning services during the coronavirus pandemic contradicts applicable lease terms and prior representations to residents, in violation of the MCPA.
  • The letters warn the recipients that they may face a lawsuit or a formal investigation, and offer to enter into an assurance of voluntary compliance requiring the cancellation and refund of the fees to residents, among other things.