Chicago deposit law didn't pay tenant deposit interest (.10 cent)

[Pete Bhanshali]

Hello Everyone, 

Running into weird issue, I had a tenant in my condo. As per law I kept the deposit in separate interest bearing account. The Law states I should pay them the interest from the deposit at the end of every year, it amounts to few pennies. I forgot to pay them the interest for first two years (about .10 cents). In the final walk through they had scratched the floor in multiple places, it required complete refinishing of the floor, the cost to refinishing was more than the deposit, I sent them the quote with breakdown of all the expenses to fix the floor. I ended up keeping the whole deposit.

I received a certified mail from the law firm that they are suing me, per Chicago law they are allowed 2x the deposit plus court costs. These types of cases are gravy train for the law firms per quick google research. So if you are landlord and are collecting deposit plz follow the deposit laws.

My question: Do they have a case if the deposit was being held in interest bearing account and nothing was ever withdrawn, my only mistake was that I didn't give them interest from the account?

Can anyone recommend an attorney that specializes in this type of cases. 

Thank You in advance for your feedback. 

Pete....

[Pete Bhanshali]

@Michael K. agree for my low tier properties I only do non-refundable move-in fee but this was perfect example why security deposit was required. When will Chicago wake up and start following common sense laws.