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Why don't you take her to small claims court? The cost is minimal and it couldn't hurt. Might even write a letter to the BBB; send a copy to her first letting her know you'll send it to the BBB in five days from her reciept if she fails to resolve the issue.
Frankly, I'm surprised that you could be denied. I thought aparment complexes used credit reports. I sure wouldn't have listed that address if I had any idea there would be a problem.
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