The Maryland Attorney General’s Consumer Protection Division settled a case with a property management company in Rockville on Thursday. The company was accused of charging tenants illegal fees.
Illegal Fees and Security Deposits for Rockville Residents
The Maryland Attorney General’s office accused 786 Property Management, Inc., and its owner, Suleman Hooda, of charging illegal fees to tenants. Additionally, they failed to properly maintain and return security deposits and acted as an unlicensed debt collector.
Assurance of Discontinuance
Hooda and the Rockville based company signed an Assurance of Discontinuance, agreeing to stop the illegal practices identified by the attorney general’s office. They also agreed to pay restitution and a penalty.
Attorney General’s Statement
Maryland Attorney General Anthony Brown emphasized the importance of protecting tenants’ hard-earned money. He expressed satisfaction that they would return the illegally collected money to the tenants and reminded landlords to follow the laws designed to protect tenants.
Financial Penalties and Future Compliance
Hooda and 786 Property Management, Inc., trading as Real Property Management Capital, agreed to pay $150,000 to affected tenants. This amount covers the money improperly charged or withheld. They also agreed to comply with state landlord, tenant, and debt collection laws and pay a $50,000 penalty. If they violate the agreement, the penalty will increase to $250,000.
Refund Process for Tenants in Rockville
Tenants in Rockville owe a refund and do not need to take any action to receive their money. The attorney general’s office will handle the refund process.