Pennsylvania Attorney General Michelle Henry announced a $50,000 settlement with A.R. Building Company, a Butler County landlord, over allegations of unlawful billing, leasing, and debt collection practices. The settlement aims to rectify the company’s alleged violations and ensure compliance with state consumer protection laws.
A.R. Building Company, which owns 20 apartment complexes across Pennsylvania, faced accusations of inflating repair costs billed to tenants and utilizing leases with unfair terms. The lawsuit filed by the AG’s office in November 2023 accused A.R. Building of inflating repair costs for alleged damages. It was also accused of violating state debt collection laws by threatening to report unpaid debts to the credit reporting agencies when it did not have a process in place to report such debts. For example, the company told tenants:
- Your ability to rent from other rental properties, your ability to obtain credit, your ability to lease, your ability to own property and possible employment will be affected by your failure to pay.
The company was also accused of using “fear tactics” to induce tenants to make payments, including payments for illegal security deposits.
As part of the settlement, A.R. Building has agreed to pay $35,000 in restitution to affected tenants, $10,000 in costs, and $5,000 in civil penalties. The company has also agreed to stop using collection letters that include false threats or seek collection of debts not authorized by contract or law.
“This settlement ensures that A.R. Building’s billing and leasing practices will comply with the law going forward,” Henry said. “Many renters face challenges in searching for and securing safe and suitable housing 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.”
