Landlord trying to collect for disputed damages in MD

[ham_snadwich]

Hi everyone, here's the short version:

Moved out of an apartment in 2006 when I bought my house. The apartment had some water damage from a leak in another apt. that the maintenance people eventually fixed. But there were parts of the floor that could've been damaged (carpet over plywood) by the water. The leak continued over a period of a month or so while they attempted to fix it. All of this is documented.

A month afterwards, I received a collections notice for $700 beyond the original security deposit. I called the apartment manager and she claimed the carpet needed to be replaced. I sent a letter asking for proof and explained about the leak. I received a letter stating that I had to deal with the collection agency. I sent a request for verification to the collections agent within the thirty days. I did not send a letter to the Credit Reporting agencies (still haven't, by the way).

About a month after that, I received a packet of information that wasn't mine. They had sent someone else's file. I wrote another letter stating that they had not verified the debt and needed to send me the information immediately. Evenutally I did get a copy of my lease and some illegible pictures claiming to be of the damaged carpet.

I don't feel I owe this money and I'm prepared to file a small claims suit against the original creditor, but for how much? The security deposit is only $100, but what's really important is getting this off my credit report.

So here are my questions

1. If I take the leasing company to small claims, how much do I sue for? The amount of the security deposit? Can I sue to have the debt invalidated?

2. If the collections agent reported the debt before they provided verification of the debt, can I sue them as well? Do I sue in state or federal court?

3. Should I still request verification from the Credit Reporting Agencies?

Thanks for all your help

[Robert Nashville/Savannah]

I’m going to take a stab at this since no one else has responded!

You can only sue an entity for damages (and of course, you have to be able to prove them).

If you feel they have no right to keep the $100 security deposit then that’s probably all you can sue for (as well as perhaps any out of pocket expenses, time lost from work, etc). Presumably, if you were to win such a suit the $700 questionable claim would also be decided at that time.

If you can prove this debt is invalid AND you can prove actual damages because of its being reported (such as having to pay a higher interest rate on a loan specifically because of this entry, etc) then you may also be able to sue for those damages

If you do sue then you can expect them to counter sue both for them to keep the $100 and for the additional $700 as well as any other expenses they can prove (attorney fees, etc).

If you can prove what you’ve stated here then you probably have a fair chance in court but if it just becomes a “he said/she said” then it will be whoever the judge believes is most credible.

Until a judge decides otherwise, the landlord can “claim” this debt exists and collection agencies can try to collect; they can also report to the bureaus so long as it’s reported properly (including that the debt is disputed).

Where you sue in a civil matter is usually a matter of how much money is being sued for; that will depend on your state’s laws as to what is and isn’t a “small claim”.

As to FDCPA/FCRA violations; do you know for certain and can you prove that the CA reported the debt to the bureaus after receiving your DV and before providing an answer? If they did that then they have violated. If that isn’t what happened then they haven’t violated. If you can’t prove it, it doesn’t matter whether they violated or not.

Most people believe (as do I) that violations usually get more attention in Federal court although favorable consumer laws in certain states can make it more appealing to sue locally.

[ham_snadwich]

Thanks for the reply, Robert. I was getting worried no one would.

It really is a "he-said-she-said" situation. They did replace the carpet, but because of water damage due to their negligence. The evidence they submitted as proof of debt is pretty unconvincing. I've got maintenance records that prove they were out multiple times to fix things, hopefully that will prove my case.

As to FDCPA/FCRA violations; do you know for certain and can you prove that the CA reported the debt to the bureaus after receiving your DV and before providing an answer?

As for when they reported it, I only have the credit report that says:

Date Opened 02/2006

Balance Date 06/2006

I sent the initial request for verification in February, when I got the notice (I'll have to check the exact date). I finally received the correct verification information in a letter dated June 1, 2006.

So it looks like they opened the collections immediately after we left the apartment (1/31/06) possibly before we asked for verification, then updated the balance in the same month they finally sent the correct information. The information is from a 3-in-1 report. Would the individual reports have more accurate information?

It looks like I should dispute the debt in writing with the Credit Reporting Agencies (which I haven't done) and go ahead with the small claims to try to get rid of the original debt. Suing the collection agent sounds iffy, but might be worthwhile if I can get more accurate dates to back up my claim. Sound reasonable?

[ms6073]

For the OP, did you try running a google seach with the following keywords: "Maryland" & "renters rights"

Although I had a pretty good idea of the answer before hand, this site tells me what I needed to help answer your questions: http://www.marylandpirgstudents.org/renters-rights/the-security-deposit#withholding

Excerpting the relevant section:

Notice of Withholding to Tenant

The landlord has a duty to promptly inform the tenant of the reasons why the full amounts of the security deposit will not be returned. If the landlord intends to withhold any part of the security deposit, s/he must send to the tenant’s last known address within 30 days after the lease has ended, an itemized list of his reasons and the actual cost for each item. The landlord who fails to provide the list within 30 days loses his/her right to keep any part of the security deposit for damages.

That last sentence is pretty much all that matters - unless the landlord mailed you a certified letter itemizing the damages, then the landlord has forfeited any right to collect.

Return of Deposit and Interest

After the lease is terminated, the landlord has only 45 days in which to return to the tenant the security deposit and interest minus any amount properly withheld. Simple Interest of 4% per year is due on any deposit of $50 or more. The landlord is liable to the tenant for up to 3 times the amount withheld, plus reasonable attorney’s fees, if s/he fails to return any part of the deposit within this period without good reason.

That part above is your counterclaim for the landlords failure to follow the law, which, fortunately for former tenants is usually the norm for landlords and apartment management groups.

[ham_snadwich]

Thanks for your response, Michael. The management company did send a letter to our last address stating that they were withholding the security deposit for the carpet replacement. They claimed not to have our new address, which I don't believe is correct, but I have no proof that I gave them the new address. I did follow up and sent a letter requesting the security deposit, just so it was on record.

They did omit a couple things on the initial letter that was included on the verification that was sent by the debt collector. Some water and sewer charges for ~$25 or so.

I think the landlord can argue that it was "properly withheld", as they did replace the carpet, but it was due to their negligence, not mine.

[ms6073]

The management company did send a letter to our last address stating that they were withholding the security deposit for the carpet replacement.

Was the letter sent certified mail return reciept requested? Did the letter specifically itemize/enumerate the items for which dollar amounts were being withheld/charged? I know, nitpicky but a simple sentence indicating that you owe them $XXX.XX dollars for damages does not meet intent of the state laws and if the landlord did not send the letter certified, then although the post mark on the letter can indicate intent, there is no way for the landlord to prove that you were notified within the required time frame. I bet that a firmly worded demand letter from an attorney to the landlord - not the CA - will quickly stop further collections efforts in the matter. Right now it costs the landlord nothing to have the CA pursue you for the claimed amounts, it would cost the landlord a whole lot more in terms of time and money than they would hope to recover should the matter go to court.

[ham_snadwich]

It wasn't, but from my reading of the law, certified mail isn't necessary, just first class to your last known address. The letter did itemize and give dollar amounts, but about $25 was left off. Also, I'm not sure they accounted for the interest that accrued over the two years I was there.

[hendu]

For the OP, did you try running a google seach with the following keywords: "Maryland" & "renters rights"

Although I had a pretty good idea of the answer before hand, this site tells me what I needed to help answer your questions: http://www.marylandpirgstudents.org/renters-rights/the-security-deposit#withholding

Excerpting the relevant section:

Notice of Withholding to Tenant

The landlord has a duty to promptly inform the tenant of the reasons why the full amounts of the security deposit will not be returned. If the landlord intends to withhold any part of the security deposit, s/he must send to the tenant’s last known address within 30 days after the lease has ended, an itemized list of his reasons and the actual cost for each item. The landlord who fails to provide the list within 30 days loses his/her right to keep any part of the security deposit for damages.

That last sentence is pretty much all that matters - unless the landlord mailed you a certified letter itemizing the damages, then the landlord has forfeited any right to collect.

Return of Deposit and Interest

After the lease is terminated, the landlord has only 45 days in which to return to the tenant the security deposit and interest minus any amount properly withheld. Simple Interest of 4% per year is due on any deposit of $50 or more. The landlord is liable to the tenant for up to 3 times the amount withheld, plus reasonable attorney’s fees, if s/he fails to return any part of the deposit within this period without good reason.

That part above is your counterclaim for the landlords failure to follow the law, which, fortunately for former tenants is usually the norm for landlords and apartment management groups.

I, too, am in Texas. My DW and I have a collection on our reports. It was placed on there without our knowledge. It was over a so-called "damages" and a dirty carpet.

First of all, there were no damages. We cleaned that apartment thoroughly. There were a few dirt spots on the carpet but not $700 worth! We moved out In November of 2006. We didn't receive a deposit back, not a letter telling us of with-holding of it. We were never given a chance for a walk through either. We did not know that our reports we damaged until July of 2007! That's when the collection was placed there. No letter form the CA or nothing.

Where can I go to dispute this? I have already disputed with the CRA's...verified. I am ready to just pay this, BUT I want to know what I can do before I send a letter to settle for a way lower amount.

TIA!