Sorority to reimburse University of Washington students $253k. Who should expect a refund?
Alpha Omicron Pi, a national sorority based in Tennessee, was ordered by Washington state Attorney General Bob Ferguson on Wednesday to provide more than $500,000 in relief of unlawfully-charged housing fees to at least 68 University of Washington students. That total includes $253,600 in reimbursements to students, with the rest being waived fees.
The sorority continued to charge its University of Washington members housing fees throughout the COVID-19 pandemic, despite members not being able to live or access sorority housing.
The decision to continue charging the students violated Washington Gov. Jay Inslee’s eviction moratorium, which from April 2020 to June 2021, prohibited landlords from charging housing-related fees if COVID-19 resulted in residents losing access to the property.
The sorority also charged its members late fees for each month they did not pay rent, with one student incurring over $200 during the first semester of the 2020-21 school year. This also violated the eviction moratorium.
“This sorority took advantage of students, charging them thousands of dollars for housing they could not access or use,” Ferguson said in a press release.
“Alpha Omicron Pi’s actions were clear violations of the protections put in place to protect Washingtonians from the spread of COVID-19,” Ferguson continued. “Thanks to the students who spoke up and brought this to our attention, the sorority must cancel or refund these unlawful fees.”
The sorority also violated the Washington Consumer Protection Act after it was made aware of the eviction moratorium yet continued to assess fees to members with the threat of losing membership and referral to debt collectors, according to Ferguson’s office. The Consumer Protection Act prohibits unfair or deceptive acts to pressure a consumer.
Ferguson filed the lawsuit against Alpha Omicron Pi in January 2021 after 13 University of Washington students complained to Ferguson’s COVID-19 eviction moratorium enforcement team.
One student wrote to the attorney general that “it did not feel fair that I would be required to pay for the bills of the chapter house when I could not live there” and that when she raised financial concerns, she was told to “focus on ‘sisterhood.’”
List of violations
Alpha Omicron Pi charged students $6,250 in housing fees for the 2020-21 school year, despite students not being able to live or access the housing. Landlords were not permitted to charge housing-related fees if a tenant could not live in a property due to COVID-19.
Alpha Omicron Pi charged late fees between $3 to $75 for each month that housing expenses were not paid. Late fees were also prohibited under the eviction moratorium, which was in effect from April 2020 to June 2021.
The sorority sent a notice to members threatening suspension of sorority membership and referral to debt collectors, with warnings that it could negatively impact their credit history if they did not pay. This type of pressure is prohibited under the Washington Consumer Protection Act, which does not allow deceptive acts of trade or commerce.
Who qualifies for relief?
Alpha Omicron Pi’s University of Washington chapter must provide a full reimbursement or waive unlawful housing fees to all sorority members within 30 days.
The attorney general’s office will contact eligible students who are owed money from the sorority.
Alpha Omicron Pi has 134 active chapters throughout the United States and Canada, including three in Washington: The University of Washington, Eastern Washington University and Washington State University.
If you believe that you were unlawfully charged housing fees or have questions about the reimbursement process regarding Alpha Omicron Pi, you can email the Attorney General’s Office Civil Rights Division at AOIISettlement@atg.wa.gov.
