Zillow Sued Over Rent 'Transaction Fees' — Class Action
Junk Fees · Complaint Filed

Zillow Hit With Class Action Lawsuit Over Deceptive Rent “Transaction Fees” — Nour v. Zillow Group (D.D.C.)

By Steve Levine

Zillow rent Transaction Fee class action lawsuit — Nour v. Zillow Group

Published: June 7, 2026

Allegations Only · No Settlement Yet

This article describes a class action complaint. The statements below are unproven allegations. Zillow Group, Inc. has not been found liable, there is no certified class, and nothing to claim at this time. This page is informational and is not legal advice.

Status Complaint Filed
Fee at Issue $75.22 on one rent payment The named plaintiff's “Transaction Fee” (labeled a “Card fee”) on a $2,550 rent payment
Can I Claim? No — nothing to claim yet

What Is This About?

Zillow has been hit with a proposed class action accusing it of charging tenants a deceptive “Transaction Fee” every time they pay rent through Zillow Rental Manager, the company's online rent-collection platform. The complaint, brought by named plaintiff Sara Nour on behalf of herself and all others similarly situated, calls the charge a classic pay-to-pay “junk fee” — an add-on tacked onto the rent a tenant already owes, for nothing more than the ability to make the payment.

The case was filed April 23, 2026 in the Superior Court of the District of Columbia (No. 2026-CAB-002718) and was removed to the U.S. District Court for the District of Columbia, where it is now docketed as Nour v. Zillow Group, Inc., No. 1:26-cv-01885-TJK. The allegations are unproven. Zillow has not responded to the substance of the claims in court, no class has been certified, and there is no settlement and no claim form.

How the Transaction Fee Allegedly Works

According to the complaint, tenants who pay rent through Zillow Rental Manager are automatically charged the Transaction Fee, and are not told the amount until the final “Confirm” payment screen. The lawsuit describes this as a “negative option” design — the fee is pre-selected for the consumer, who then has to find a way to remove it rather than choosing to add it. The complaint says Zillow provides no fair disclosure on how to avoid the fee and never tells tenants there are other ways to pay their rent, leaving them to believe the charge is mandatory.

The complaint leans on federal guidance to frame the practice. It cites the Federal Trade Commission's position that a “pre-checked box” does not amount to affirmative consent, and points to a 2023 FTC notice warning rental-management software providers — Zillow among them — that hiding mandatory fees and obscuring the true cost of renting may be unfair and deceptive. The lawsuit also argues the fee is not tied to any real processing cost and provides no value beyond what a lease already entitles a tenant to do: pay the rent.

The Plaintiff's Experience

The complaint offers a specific example. It alleges that on November 1, 2024, Nour paid her monthly rent of $2,550 with a debit card through Zillow's platform and was charged a $75.22 Transaction Fee — labeled a “Card fee” on her receipt — that was automatically added to her total. She says she reasonably believed the fee was mandatory, that the charge was never presented as optional during the lease-signing process or at checkout, and that had she known it was avoidable she would have paid her rent some other way.

What Laws the Lawsuit Says Zillow Broke

The complaint brings five causes of action. It alleges violations of a range of state consumer protection statutes on behalf of a multi-state class, a specific claim under the District of Columbia Consumer Protection Procedures Act (CPPA), and a claim under the Washington Consumer Protection Act (WCPA) — Zillow is headquartered in Seattle. It also alleges tortious interference with contract, arguing the fee amounts to undisclosed extra rent that disrupts tenants' lease agreements with their landlords, and unjust enrichment, seeking to make Zillow give back the fees it collected.

Who Could Be Covered?

The complaint proposes three overlapping groups: a nationwide class of everyone charged a Transaction Fee when making a rent payment through Zillow, a multi-state class covering states with similar consumer-protection laws, and a District of Columbia class for people charged the fee on rent payments in D.C. These are proposed definitions only. No class has been certified, and a court could narrow, expand, or reject them.

What the Lawsuit Seeks

The complaint asks the court to certify the proposed classes and to order actual damages, restitution and disgorgement of the collected Transaction Fees, treble damages and attorneys' fees where the cited statutes allow, and an injunction barring Zillow from continuing the practice. The civil cover sheet lists a jury demand of $5,000,000. Those are requests in a filing — not amounts a court has awarded, and not a fund anyone can claim against.

Can I File a Claim?

No. This is a newly filed complaint, not a settlement. There is no claim form, no payout, and no deadline to act. If the case eventually settles or a class is certified and notice goes out, that is when eligible renters would learn whether they are covered and how any payment or relief would work. For now, the practical takeaway for renters is simply to read the final confirmation screen carefully before paying rent online and to check whether a no-fee option (such as ACH/bank transfer) is offered.

Frequently Asked Questions

Is there a Zillow settlement or claim form yet?

No. This is a newly filed proposed class action complaint. There is no certified class, no settlement, and no claim form. The allegations are unproven, and Zillow has not been found liable. There is nothing to claim at this time.

What is the Zillow Transaction Fee the lawsuit is about?

The complaint targets a fee Zillow charges when tenants pay rent through Zillow Rental Manager. The named plaintiff says she paid $2,550 in rent by debit card and was charged a $75.22 “Card fee.” The lawsuit calls it a pay-to-pay junk fee that is added automatically and is not disclosed until the final confirm screen.

Who could be covered if a class is certified?

The complaint proposes a nationwide class of people charged a Transaction Fee when making a rent payment through Zillow, a multi-state consumer-protection class, and a District of Columbia class. No class has been certified, so the definitions could change.

What does the lawsuit ask for?

The complaint seeks actual damages, restitution, disgorgement of the fees, treble damages and attorneys' fees under the consumer-protection statutes cited, plus an injunction to stop the practice. These are requests in a complaint, not amounts anyone has been awarded.


Sources


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Status Complaint Filed — Allegations Only
Case Title Sara Nour v. Zillow Group, Inc.
Case Number 1:26-cv-01885-TJK (D.D.C.); orig. 2026-CAB-002718 (D.C. Super.)
Court U.S. District Court, District of Columbia
Date Filed April 23, 2026 (removed May 29, 2026)
Read the Complaint Complaint (PDF)