Tenants of League City property allege landlords charge unreasonable late fee

By Kristine Gonzales-Abella | Jun 13, 2018

GALVESTON – A Galveston County couple alleges their lease has a late fee provision that is grossly unreasonable and in violation of the state's property code.

GALVESTON – A Galveston County couple alleges their lease has a late fee provision that is grossly unreasonable and in violation of the state's property code.

Pam Nickelson and Ron Nickelson filed a complaint on May 31 in the Galveston County District Court against Marlon Reyes Granados and Kristin Yake alleging that they violated the Texas Property Code.

According to the complaint, the plaintiffs allege that in 2016, they entered into a lease agreement with the defendants for a home located in League City for $3,600. The suit states as of May 29, the defendants are demanding payment of $46,470 in late fees for their claimed total of at most, $10,800 in past-due payments.

The plaintiffs hold Granados and Yake responsible because the defendants allegedly unlawfully charge late fees equals an annual percentage rate of approximately 1,521 percent.

The plaintiffs seek monetary relief of a current amount of approximately $175,000, damages, court costs and attorney's fees. They are represented by Ed Rainey in League City.

Galveston County District Court case number 18-CV-0706

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Ed Rainey Attorney at Law Galveston County District Court

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