Maryland AG Charges Property Owners with Unlicensed Debt Collection

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Anthony Brown, the Attorney General of Maryland, yesterday announced charges against the owners and property managers of an apartment complex in Prince George’s County for a series of alleged violations, including operating without the required rental housing license and engaging in illegal debt collection practices. The apartment complex, formally known as Heather Hill by OneWall, has faced criticism from tenants over poor living conditions, including mold, broken utilities, rodent infestations, and more.

The Consumer Protection Division filed these charges against Heather Hill Property Company LLC, Heather Hill Operating Company LLC, OneWall Communities LLC, Andy Wallace (CEO), and Ron Kutas (COO). The alleged violations include failing to obtain a rental housing license after acquiring the complex in April 2022, and collecting rent despite not meeting state licensing requirements. Additionally, the property managers did not have the necessary debt collection license under the Maryland Collection Agency Licensing Act (MCALA), a violation that has implications for their practices under the Consumer Debt Collection Act (CDCA).

The charges assert that Heather Hill’s property managers attempted to collect rent and other fees during periods when they did not hold a valid rental license, and even after a temporary license was issued, it was subsequently suspended due to outstanding fire and housing code violations. As a result, more than 130 failure-to-pay rent actions filed by the management were voluntarily withdrawn in mid-2024 after challenges by a local non-profit organization…

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