PROPERTY MANAGEMENT COMPANY SETTLES WITH ATTORNEY GENERAL’S OFFICE

Consumers to get holding fees refunded

Maryland Attorney General J. Joseph Curran, Jr. announced today that his Consumer Protection Division has reached an agreement with a Laurel, Maryland property manager, Equity Management, Inc. concerning the collection of application fees from prospective tenants. The Division alleged that Equity Management violated the Maryland Application Fee Law and the Consumer Protection Act when it collected fees from consumers to hold apartments but refused to return the fees if the consumer did not sign a lease. Equity Management agreed to refund to consumers the holding fees that it kept since January 1, 1999 and to only charge application fees permitted by the Application Fee Law. Under the Application Fee Law, a landlord may charge a prospective tenant a fee of $25 or less. If the landlord charges more than $25, they must refund any amount that they did not use to cover the costs of processing the application, such as running a credit check.

Consumers eligible for restitution under the settlement will be contacted by the Consumer Protection Division.