They're witholding my interest, should I sue my former landlord?

[cfludd2001]

What is the name of your state (only U.S. law)? Connecticut

I moved out of my apartment on November 1st and 30 days later when I received my deposit and itemized deductions list, the landlord did not include the interest.

I wrote them a letter explaining that I would like the accumulated interest and they wrote me back claiming they omitted the interest in the itemized deductions because they used it toward costs associated with repair and cleaning and they also claimed some law about if we were later than the 10th day, they can withhold paying the interest for that month.

I wrote them back explaining that the interest is not a prize thats awarded to me for renting there property (I do not believe the landlord actually put the deposit in an escrow account), that this is my money and if they actually used my money toward costs and repairs that should have been listed in the itemized deductions. I also explained that the rent was never submitted later than the 10th day and if they were going to not pay the interest for whatever month I was delinquent, they should have mentioned that in the itemized deductions.

I have yet to hear back from them although I know they have received my letter (it was certified) and I doubt that I will. I'm planning on bringing them to small claims court for the return of my interest. Here are my concerns, I always paid the rent in cash and I did not get a receipt from the landlord. If we were to go to court and they claim we were always later than the 10th, who has carries the burden of proof and without receipts how could I dispute this.

 

[Gail in Georgia]

How much money in interest are we talking about here?


Gail

 

[JETX]

Wow... I really can't imagine that this issue could be worth much, since the allowed interest rate in CT is 1.5%.

In any case, here is the specific CT General Statute:
Sec. 47a-21. Security deposits.
(i) Payment of interest on security deposits.
(1) On and after July 1, 1993, each landlord other than a landlord of a residential unit in any building owned or controlled by any educational institution and used by such institution for the purpose of housing students of such institution and their families, and each landlord or owner of a mobile manufactured home or of a mobile manufactured home space or lot or park, as such terms are defined in subdivisions (1), (2) and (3) of section 21-64, shall pay interest on each security deposit received by him at a rate of not less than the average rate paid, as of December 30, 1992, on savings deposits by insured commercial banks as published in the Federal Reserve Board Bulletin rounded to the nearest one-tenth of one percentage point, except in no event shall the rate be less than one and one-half per cent. On and after January 1, 1994, the rate for each calendar year shall be not less than the deposit index, as defined in subdivision (2) of this subsection, for that year, except in no event shall the rate be less than one and one-half per cent. On the anniversary date of the tenancy and annually thereafter, such interest shall be paid to the tenant or resident or credited toward the next rental payment due from the tenant or resident, as the landlord or owner shall determine. If the tenancy is terminated before the anniversary date of such tenancy, or if the landlord or owner returns all or part of a security deposit prior to termination of the tenancy, the landlord or owner shall pay the accrued interest to the tenant or resident within thirty days of such termination or return. In any case where a tenant or resident has been delinquent for more than ten days in the payment of any monthly rent, he shall forfeit any interest which would otherwise be payable to him for that month, except that there shall be no such forfeiture if, pursuant to a provision of the rental agreement, a late charge is imposed for failure to pay such rent within the time period provided by section 47a-15a. No landlord or owner shall increase the rent due on any quarters or property subject to the provisions of this section because of the requirement that interest be paid on any security deposit made with respect to such quarters or property.

I have bolded the section that will likely cause you a problem. The landlord has already stated that he is going to use the 'more than 10 days' defense. And since you have NO documents to support your claim (and I bet the landlord WILL have records of payments), you probably have little to none chance of success.