Storage giant Extra Space has settled a $1.7 million lawsuit filed by New York City officials concerning alleged predatory practices, including exorbitant price increases and severe pest infestations at its facilities. The settlement includes a $1 million restitution fund for customers and $700,000 in civil penalties, according to the New York City Department of Consumer and Worker Protection (DCWP).

An investigation spanning three years, involving over 100 customer complaints, reportedly found that Extra Space, one of the largest self-storage companies, consistently failed to provide the advertised quality of services. The DCWP alleged that the company employed bait-and-switch schemes, advertising clean and affordable storage units that instead delivered high prices and vermin problems.

"Extra Space’s facilities seem more appropriate for a setting of a horror movie than to keep consumers’ valuables safe; consumers have reported widespread vermin infestations, water damage, and mold," the DCWP stated in a press release.

Customers also reported significant price hikes with little to no notice, unauthorized lock changes that denied access to belongings, and the imposition of unjustified late fees. The company allegedly threatened to auction off possessions for non-payment.

One Bronx resident, Alex Rodriguez, reported finding dead and live rats in his unit in October 2021. His belongings, including children's toys and clothing, were allegedly soiled by rat feces and urine, resulting in an estimated $100,000 in damages.

Another customer, Donna La Forey, whose unit has been rented since 2018, experienced a flood in July 2023. Despite the business's claims that her items were unaffected, she was forced to discard damaged possessions, including electronics, furniture, and work equipment, estimating her losses at $10,000.

Customers affected by these issues can file claims for the restitution fund starting August 1. Claim forms will be available on the DCWP’s website and can be submitted via email or mail. The claims will be reviewed on a case-by-case basis.

Extra Space, a publicly traded company valued at over $30 billion, did not admit wrongdoing as part of the settlement. The company did not immediately respond to requests for comment.