Neighborhood Pay Services Alerts Consumers to High Fees for Lease Co-Signing/Guarantor Services NPS Option Enables Renters to Obtain a Lease with Meaningful Savings

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Consumers alerted to high fees with lease co-signing services and cost saving options.

... we have a responsibility to make things easy and affordable in serving hardworking individuals with credit scores that often translate to additional security deposits ...

Neighborhood Pay Services/NPS, operators of Rent Assurance™, the only payroll direct deposit platform for single and multifamily home rentals, today issued an alert to renters to beware of high fees charged by some lease co-signing /guarantor services who offer a high price option for renters with low credit scores that typically create cost hurdles in obtaining an apartment lease. With fees averaging 6-10% of monthly rent, NPS warns that some of these services present a ‘buyer beware’ scenario akin to payday loans that presents a high-cost alternative to consumers at a time when they are most in need of access to credit and constructive financial support.

“We believe we have a responsibility to make things easy and affordable in serving hardworking individuals with credit scores that often translate to additional security deposits in order to obtain an apartment lease,” says Richard A. Levitan, president of Neighborhood Pay Services. “While acceptance of lease guarantor programs is strong in cities like New York, where consumers are resigned to paying more for essential services, we don’t believe these costs are justified across the board, particularly not for renters living paycheck to paycheck,” adds Levitan, who also notes lower fee service providers provide a valuable service to renters. Rent Assurance serves renters with incomes ranging from $18,000-$100,000 and credit scores below 680 through a proprietary payroll direct deposit platform that accumulates funds toward rent directly from employers as a form of structured payment planning. Rental communities offer Rent Assurance as a replacement to higher upfront security deposits because they know before a lease is signed that funds for rent will be put aside directly from employers every time a resident is paid. Upfront cost savings to residents average $500 prior to move-in and can grow throughout the term of a lease with the avoidance of costly late fees. The monthly cost to participate with Rent Assurance averages $15, or less on an annualized basis than one or two late rent payment fees.

    About NPS Rent Assurance
NPS Rent Assurance is the only payroll direct deposit platform providing the multifamily industry with a proven solution for building incremental occupancy through improved payment performance from conditionally approved residents. The company’s simple, “hands-off” program receives deposits from a resident’s payroll with built-in safeguards against ‘pull back’ until rent is due. NPS Rent Assurance is offered exclusively through apartment leasing offices in conjunction with lease application credit approvals.

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Ellen Calmas
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