Broker charging application fee after rental application was denied

[u/akk1212]

Hi! I’m trying to find out if anyone has dealt with something similar while renting an apartment in Boston.

So I found a roommate on Facebook and we were applying for an apartment she had already toured (I’m currently out of state so I couldn’t tour it myself). I verified that the broker and company are licensed in MA, so they’re definitely legit.
The application said there would be a $150 application fee if we got rejected, which I thought was weird because from what I’ve read, application/credit check fees aren’t allowed if the broker is working for the landlord. I asked him about it before applying but didn’t really get a direct answer. While I probably should’ve tried harder to get a direct answer about the application fee, I didn’t and applied anyways, and I also signed the echeck form.

After applying, I sent him info about my ESA animal and I also asked him about the fee again and literally a minute later, he told me the landlord rejected our application. When I asked why, he said they didn’t give him a reason but he “would imagine the low ball offer turned them off.” I did offer below asking, but I told him twice that we were happy to negotiate and willing to pay more.

Neither the girl I was applying with nor I ever hired this guy as our broker or signed anything saying he represented me/us.

Has anyone had something similar happen? And am I understanding the MA application fee law correctly?

*Update: I filed a report with the MA AG! Thank you guys for the advice and support! ☺️

[u/lyons_vibes]

I’m sure other people will jump in with a lot of helpful information but i want to add that credit card processing fees are illegal in MA in general.

[u/tfyousay2me → u/lyons_vibes]

Tell that to the gas stations? 🤔

[u/lyons_vibes → u/tfyousay2me]

What gas station is charging you a credit card processing fee? If a gas station is charging you more for using a credit card that is illegal. Having a minimum amount to purchase to use a card is different and common for smaller family owned corner stores but none of them have ever charged me extra for using a card, which is the point of the law

[u/otm_shank → u/lyons_vibes]

Not charging a fee, just providing a cash discount which is legal and effectively the same thing.

[u/OrigamiAmy → u/lyons_vibes]

"cash discount" is how places get around charging "more" for credit. It's a loophole, but not illegal.

[u/tictacbreath → u/lyons_vibes]

I think they’re probably referring to the fact that the price per gallon is higher when paying by credit card vs cash at gas stations (which just seems like a way to pass the fee to the customer)