PENNSYLVANIA — Pennsylvania Attorney General Michelle Henry has announced a lawsuit against A.R. Building Company, Inc., a Butler County-based landlord, over alleged unlawful leasing and debt collection practices. The company owns 20 apartment complexes across the state.
The lawsuit alleges that A.R. Building inflated security deposit charges by 50 percent, which is a violation of the Landlord and Tenant Act. This act limits security deposit charges to the “actual amount of damages” to the rental unit. In addition, the suit claims that the company sent collection letters to consumers threatening to take action if the consumer did not submit payment within 15 days after they moved out.
One instance cited in the lawsuit involves a consumer who was billed $1,190.40 for carpet replacement, despite the carpet installer invoice showing a charge of only $799.60 for the service.
“This landlord inflated security deposit charges, and then used illegal threats to pressure the consumers to promptly pay the company,” Attorney General Henry said. “Many renters face challenges due to their unequal bargaining power in the housing market. My office will continue to hold landlords accountable for violations of state consumer protection laws and will not stand by when consumers are harmed.”
The three-count complaint alleges the following violations of the Consumer Protection Law:
- Overcharging consumers for security deposit charges
- Using a lease form that misrepresents to consumers that the Defendant is authorized to take certain actions that are declared unlawful under the Pennsylvania Landlord and Tenant Act
- Engaging in unfair and deceptive debt collection practices by illegally threatening consumers to take certain actions and collecting security deposit charges not permitted by law
The lawsuit seeks civil penalties and restitution, including refunds of inflated security deposit charges, and prohibits the company from illegal leasing and debt collection practices. It was filed in the Allegheny County Court of Common Pleas by Senior Deputy Attorney General Amy L. Schulman of the Pittsburgh Regional Office.
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