The Commanders were required to refund security deposits within 30 days after the seat licenses for consumers were terminated or expired. But the team did not return the deposits unless the ticket holders requested refunds in writing.
“For many years, the Commanders kept money that was not theirs,” Frosh said in a statement. “It belongs to their customers. Today’s settlement will require the team to return the monies owed to consumers. The Commanders will pay a penalty, and they will be enjoined from engaging in similar practices in the future.”If any of the repayments cannot be returned to the consumers, the Commanders must turn over the funds to be held as unclaimed.
The settlement also includes an injunction that requires the team not to mislead consumers about its security-deposit practices and to return any future security deposits that it collects from fans within 30 days of the cancellation or termination of the seat licenses. According to the “assurance of discontinuance” filed with the consumer protection division of Frosh’s office, the team “does not admit, agree with, or concede any allegations.” The document adds that the team denies any violation of Maryland law and is “undertaking a similar large-scale effort to send notices to more than 1,800 account holders with an outstanding security deposit balance” to return the deposits.
“Further, the team engaged an outside law firm and forensic auditors to conduct an extensive review of the Commanders’ accounts and it found no evidence that the team intentionally withheld security deposits that should have been returned to customers or that the team improperly converted any unclaimed deposits to revenue.”The team’s security-deposit practices were first revealed publicly through an investigation by the House Committee on Oversight and Reform.
D.C. Attorney General Karl A. Racine has filed two lawsuits in the civil division of the D.C. Superior Court against the Commanders for
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