Attorney General sues Seven Fields-based landlord
The state Attorney General’s office said it has sued a Butler County-based landlord alleging the company inflated security deposits and damage repair bills paid by tenants.
Attorney General Michelle Henry said a suit has been filed against A.R. Building Company Inc., of 310 Seven Fields Blvd., Suite 350, in Seven Fields, which owns 20 apartment complexes in the state, alleging unlawful leasing and debt collection practices.
Charging documents indicate that at least 12 of the rental complexes are located in Allegheny County and at least one is in Greensburg. Documents do not indicate that any properties are located in Butler County.
The lawsuit, filed in Allegheny County Common Pleas Court, claims A.R. Building inflated certain security deposit charges by 50%, in violation of the Landlord and Tenant Act, Henry said. Under the law, security deposit charges are limited to the “actual amount of damages” to a rental unit.
The suit also alleges A.R. Building sent collection letters to tenants after they moved out, illegally threatening to take action if they did not submit payment within 15 days, Henry said.
One consumer was billed $1,190.40 for carpet replacement, when the carpet installer invoice showed a charge of $799.60 for the replacement, according to Henry.
The three-count complaint alleges A.R. Building violated the Consumer Protection Law by overcharging consumers for security deposit charges, used a lease form that improperly tells tenants A.R. Building can take actions that are unlawful under the Pennsylvania Landlord and Tenant Act, and engaged in unfair and deceptive debt collection practices by illegally threatening tenants and collecting security deposits not permitted by law, according to Henry.
The suit seeks civil penalties and restitution, including refunds of inflated security deposit charges, and prohibits the company from illegal leasing and debt collection practices, according to Henry.
“This landlord inflated security deposit charges, and then used illegal threats to pressure the consumers to promptly pay the company,” Henry said. “Many renters face challenges due to their unequal bargaining power in the housing market.”