For Immediate Release
Media Contact: Bob Cooper
Date: December 17, 2008
Wasden: Meadow Lake Village Reaches Agreement Regarding Fee Increases
(Boise) – Meadow Lake Village, a Meridian senior retirement community, reached a legal settlement with the Attorney General’s Office resolving allegations that Idahoans were misled regarding future increases in annual fees when purchasing their interest in the community, Attorney General Lawrence Wasden said.
“Idahoans are entitled, under Idaho law, to receive truthful and accurate information regarding the annual fees associated with living in their retirement community,” Attorney General Wasden said. “This settlement allows the residents of Meadow Lake Village peace of mind that they will be receiving an accurate and fair accounting of any future increases.”
Some Meadow Lake Village residents complained to Wasden’s office that Meadow Lake Village’s sales agents said its fee increases were calculated pursuant to the cost of living index or the annual rate of inflation. This contradicts the fee provision in the residents’ written contract, which gives Meadow Lake Village broad discretion to raise fees. In some cases, cottage residents saw their fees increase more than 50 percent in two years.
The settlement agreement requires Meadow Lake Village to offer certain cottage residents the opportunity to modify their original fee contracts and limit future increases to five percent each year.
Meadow Lake Village also must modify its business practices to ensure that its sales agents understand the company’s service fee policies and do not misrepresent these policies to potential residents.
The affiliate company of Meadow Lake Village, Touchmark, operates similar communities in eight states and in Alberta, Canada. The Meridian community includes independent living cottages and apartments, as well as assisted living facilities. Both Touchmark and Meadow Lake Village cooperated with the Attorney General during his inquiry.
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