(FOX 2) - Michigan Attorney General Dana Nessel put several senior living facilities on notice for charging residents a supplemental $900 COVID-19 fee when the pandemic hit.
The fee could potentially be in violation of Michigan’s consumer protection laws, leading Nessel to send cease and desist letters to 11 facilities, along with their parent and management companies.
Nessel says her office received 37 complaints from residents or their families about the $900 “supplemental COVID-19 fee.”
A senior official told the AG's office that the one-time fee was to partially offset cost increases attributed to the COVID-19 response, including charges for meal service, personal protective equipment and cleaning services.
The official also said residents who were upset by the fee and pushed back were told they did not have to pay it, bringing into question the fairness of a fee ultimately borne only by those too trusting or afraid to resist its imposition.
“This pandemic has caused financial strain for many people and businesses in Michigan, but that does not provide companies with the right to impose unauthorized costs on their customers and clients - especially those in our senior communities and others who are already living on a fixed income,” Nessel said in a news release. “As Attorney General, I am bound by duty to ensure our laws are enforced, and it as my responsibility to protect our vulnerable populations and all Michigan residents from unlawful actions.”
The letters were sent this week to Brighton-based parent company CSIG Holding Co. LLC, its facility management company, Senior Village Management LLC, and the facilities, which are located in Brighton, Petoskey, Plymouth, Oxford, Midland, Grand Ledge, White Lake, Rockford, Chesterfield and Saline.
A letter was also sent to Senior Living Portage LLC, which had a different registered agent but is part of the CSIG Holding family.
The operators have 10 days from receipt of the cease and desist letter to respond or face a formal investigation and potential legal action from the Attorney General’s office. T
The operators may also sign an agreement requiring they cancel and refund the $900 fees to residents and make assurances that they will not violate the Michigan Consumer Protection Act (MCPA) again, among other terms.