Individual Illinois Tenants Can Enforce All Illinois Tenants Rights

How Individual Tenants Enforce the Rights of All Illinois Tenants by Enforcing Their Own Rights

On September 15, 2006 DepositLaw settled a claim by individual tenants of a large Itasca apartment complex with over 400 apartment units. The landlord has never been proven to have done anything wrong, and it never has admitted liability.

The tenants alleged that the landlord failed to pay interest on their $1125 security deposit within 30 days of the end of each 12-month rental period. The tenants had rented at the complex over 10 years.

The tenants moved out of the apartment complex in 2006 and contacted DepositLaw for help getting the interest earned on their security deposit. DepositLaw sought damages under the Illinois Security Deposit Interest Act ("Act") for the landlord's allegedly willful failure to pay interest on the tenants' deposit each year. Damages under Section 2 of the Act are equal to the full amount of the security deposit, which far exceeds the actual unpaid interest.

After negotiations with the landlords' attorneys, DepositLaw secured a payment of $2000 to the tenants. The landlord admitted no liability by entering into the settlement, and no court found landlord did anything wrong. No lawsuit was ever filed.

Shortly afterwards, in January 2007, the apartment complex gave other long-time renters rent-credits up to hundreds of dollars.

The tenants' assertion of their rights may have prompted the landlord to voluntarily meet its overdue interest obligations. One family of tenants enforced the rights of 400 former neighbors and friends.

Dear Resident, the amount of $437.82 has been credited to your account as accrued interest on your security deposit. Therefore, please pay the amount of $657.18 for February 2007 rent. Sincerely, Colonial Village Apartments

Illinois Security Deposit Interest Act

765 ILCS 715/1

A lessor of residential real property, containing 25 or more units in either a single building or a complex of buildings located on contiguous parcels of real property, who receives a security deposit from a lessee to secure the payment of rent or compensation for damage to property shall pay interest to the lessee computed from the date of the deposit at a rate equal to the interest paid by the largest commercial bank, as measured by total assets, having its main banking premises in this State on minimum deposit passbook savings accounts as of December 31 of the calendar year immediately preceding the inception of the rental agreement on any deposit held by the lessor for more than 6 months.

765 ILCS 715/2

The lessor shall, within 30 days after the end of each 12 month rental period, pay to the lessee any interest, by cash or credit to be applied to rent due, except when the lessee is in default under the terms of the lease. A lessor who willfully fails or refuses to pay the interest required by this Act shall, upon a finding by a circuit court that he has willfully failed or refused to pay, be liable for an amount equal to the amount of the security deposit, together with court costs and reasonable attorneys fees.