Klima, Peters & Daly on Your Credit Report: What to Know

Klima, Peters & Daly, P.A. (KPD) is a creditors’ rights law firm that has collected consumer debt in Maryland since 1983, formerly operating under the name Peroutka, Miller, Klima & Peters, P.A. Both names may appear on credit reports or correspondence. They collect primarily for LVNV Funding and other debt buyers across Maryland, Virginia, Delaware, and Washington, DC.

KPD files collection lawsuits routinely and has a documented pattern of pursuing wage garnishment after judgment, placing liens on property, and restarting garnishment when payment arrangements break down. This guide covers who KPD is, their documented conduct, and how to respond.

Who Is Klima, Peters & Daly?

Klima, Peters & Daly, P.A. is a collection law firm founded in 1983 and headquartered in Pasadena, Maryland. The BBB has recorded 16 complaints in a three-year period. They are licensed to collect in Maryland, Virginia, Delaware, and Washington, DC.

KPD’s primary confirmed client is LVNV Funding, the large debt-buying operation. They also collect for Cavalry Portfolio Services and other debt buyers. Maryland has a 3-year statute of limitations on written contracts, one of the shorter state limits in the country. Maryland also has its own Maryland Consumer Debt Collection Act (MCDCA) that applies to collectors in addition to the federal FDCPA.

KPD Actively Files Lawsuits and Pursues Judgments

KPD’s BBB complaint responses reveal a consistent and documented collection pattern. They mail a validation notice, then file a lawsuit if the account remains unpaid, obtain a judgment, and then proceed to wage garnishment or property liens.

A documented BBB complaint describes a consumer discovering KPD had filed a lien on their home only when a refinance flagged it. The consumer had received no prior notification of the lien. Under Maryland law, a judgment lien can attach to real property without separate notice to the property owner beyond what was provided in the original lawsuit.

If you receive a summons from KPD, respond before the deadline in your state. Maryland state court response windows can be short. Failing to respond results in a default judgment that gives KPD the authority to garnish wages and place property liens without further court action.

The Garnishment Restart Pattern

A documented BBB complaint shows a consumer who entered a payment plan after a KPD judgment. Several payments were returned for insufficient funds over several months. KPD deleted the payment agreement and filed a wage garnishment. The consumer then negotiated a modified garnishment amount. KPD later filed a second garnishment when the balance was not resolved.

KPD’s own BBB responses document applying garnishment payments to post-judgment interest first, with the principal balance reducing more slowly than consumers expect. This means the total time under garnishment can be longer than a consumer anticipates based on the original balance.

If you are entering a payment arrangement with KPD after a judgment, request a written amortization schedule showing how each payment will be applied between principal, interest, and court costs before agreeing to terms.

The 2024 Shelton Federal Case

In 2024, Freda Shelton filed a pro se lawsuit against Klima, Peters & Daly, P.A. and Capital One in the U.S. District Court for the District of Maryland (Shelton v. Klima, Peters & Daly, P.A., Civ. DLB-24-1068) alleging violations of the FDCPA, the Maryland Consumer Debt Collection Act, and the Maryland Consumer Protection Act. Shelton alleged KPD attempted to collect unauthorized amounts on a Capital One account on LVNV’s behalf.

The court granted KPD’s motion to dismiss, finding that Shelton’s complaint lacked sufficient specificity about the amounts claimed, the terms violated, and the specific statutes breached. The case was dismissed without KPD being found liable. It does confirm that KPD operates as a collection agent for LVNV Funding on Capital One-originated accounts.

Maryland Debt Collection Law

Maryland’s Consumer Debt Collection Act (MCDCA) provides protections beyond the federal FDCPA. The MCDCA applies to any person collecting consumer debts in Maryland and prohibits threatening action that cannot legally be taken, using threatening or intimidating language, and making false statements. Maryland consumers can file complaints with the Maryland Attorney General’s Consumer Protection Division at (410) 528-8662 in addition to the CFPB.

What KPD Cannot Do Under Federal and Maryland Law

Based on their documented case and complaint record:

• Place a lien on property without notifying the consumer beyond the original lawsuit: A documented BBB complaint. While Maryland law does not always require separate lien notification, KPD’s responses confirm this has produced consumer complaints.
• Apply garnishment payments primarily to interest rather than principal without disclosure: A documented BBB complaint. Payment agreements should specify the application order.
• Call a workplace after being told personal calls are not permitted: A documented consumer complaint. FDCPA Section 1692c(a)(3) prohibits this.
• Threaten legal action they do not intend to pursue: Both FDCPA and MCDCA prohibit this. KPD does file suits regularly, making lawsuit threats credible, but early-stage threats must still reflect actual intent.
• Violate the Maryland Consumer Debt Collection Act: Maryland law provides additional remedies independently of the FDCPA.

Verify the Debt Before Paying Anything

Send a written validation request by certified mail within 30 days of first contact. Request the original creditor’s name, the account number, the date of charge-off, and confirmation of LVNV’s ownership of the specific account. Maryland has a 3-year statute of limitations on written contracts, one of the shorter limits in the country. Confirm the date of last payment before engaging, particularly for older accounts.

How to Check Your Credit Report for KPD Entries

Search all three credit reports for “Klima Peters Daly,” “KPD,” and “Peroutka Miller Klima Peters.” Confirm the original creditor is identified and the balance matches what was recorded at charge-off. For LVNV accounts, confirm the chain of assignment from the original creditor to LVNV to KPD.

Your Options Before Paying or Responding

• Respond to any lawsuit summons immediately: KPD files routinely and pursues default judgments. Responding is the only way to preserve your defenses and negotiate a resolution.
• Request a written payment application schedule before entering any arrangement: The documented BBB complaint shows post-judgment payments going primarily to interest. Get the allocation in writing before agreeing to terms.
• Confirm the statute of limitations before engaging on older accounts: Maryland’s 3-year limit is shorter than most states. Confirm the last payment date before responding.
• File with the Maryland AG for MCDCA violations: Maryland law provides additional enforcement avenues independent of the CFPB.

How to Contact Klima, Peters & Daly

• Address: Klima, Peters & Daly, P.A., 8028 Ritchie Highway, Suite 300, Pasadena, MD 21122
• Phone: (800) 899-2424

Bottom Line

Klima, Peters & Daly collects primarily for LVNV Funding and files lawsuits in Maryland, Virginia, Delaware, and DC. They have a documented pattern of pursuing wage garnishment and property liens after judgment and have generated complaints about lien placement without consumer notice and payment arrangements that resolve slower than expected due to interest-first application.

If KPD has filed a lawsuit, respond before the deadline. If they have placed a lien on your property you were unaware of, confirm its status immediately through your county land records office.