Question about security deposit for apartment?

Question

My former landlord called me today and left a message on my phone saying that they had accidentally over-paid me when they returned my security deposit. They said they accidentally gave me someone else's deposit too. I received the check about a month ago and already cashed it and spent it. Am I legally obliged to return the money (I don't feel morally obliged to do any favors for this particular landlord). Or is this a case of Monopoly's "Bank error in your favor, keep the cash". In case it matters, I live in Illinois, so it would be Illinois state law.

Answer 1

My opinion only, but if they paid you too much and it has been this long and you were not aware that it was an overpayment then I would keep it, especially if it would put you in financial hardship to pay it back.

I hope you didn't realize at the time it was the wrong amount though, cause' thats not cool!

Good Luck!

Answer 2

Of course you must pay it back.  If you do not, you will be taken to small claims court, and you will lose that battle.  Accounting errors do NOT give you ownership of monies which came as the result of said error.  I suggest that you contact the landlord and attempt to work out a sensible repayment program.

Answer 3

If you need to ask this question then you know its wrong. THATS STEALING!!!!! You are only entitled to what you paid, How would you feel if it was the other way around and then you couldnt get your deposit back because someone was doing what you are doing now???? Give the money back!!!

Answer 4

If you walked out of a bank and took out a withdrawal  and you "suspected" that the teller gave you too much would you return the difference? This isn't any different.  

If you walked out of a store and you quickly pocketed the change the clerk gave you but "suspected" that you were given too much would you go back?

Regardless of how you feel about the landlord I think you need to do the right thing.  Sure, you may get away with this but the "sorry dude, my gain your loss" mentality doesn't cut it.  

You have a chance to correct an honest mistake.  If you can live with the value of "s***w someone else before you get screwed" well, that's your decision.  In this case don't be surprised if you are served with a summons to appear in small claims court.  I'm not convinced any judge would rule in your favor.  The landlord has proof of what exactly your deposit refund ought to have been.  The landlord has proof that he paid you your deposit but in fact over paid you.  A judge would simply ask you, "Why do you think you don't have to pay back the difference?"  I don't think you have an answer!  Pay it back and make the world a better place.

Answer 5

The landlord may demand payment and put the balance on your credit report if you do not answer the demand.

Also, only a totally socially retarded person would use "Monopoly" rules as a defense to unethical and immoral behavior...

Bank error leads to arrest

10:54AM Friday February 22, 2008

Money mess leads to arrest.  /Reuters.

NEW YORK - A New York man who discovered that millions of dollars had mysteriously appeared in his bank account, and withdrew more than $2 million, has been arrested on charges of grand larceny, prosecutors said on Wednesday.

Benjamin Lovell, 48, pleaded innocent on Tuesday to charges that he withdrew money from a Commerce Bank account that had been opened by someone with the same name, prosecutors said.

The account belonged to Woodlawn Trustees Inc, a Delaware property management company, and was listed under the name of its finance director, who is also named Benjamin Lovell, court papers said.

Lovell had just $800 in his own Commerce Bank account when he went to make a deposit, but a teller, mistaking the Woodlawn account for Lovell's personal account, told him that his account contained more than $5 million, prosecutors said.

Lovell made multiple withdrawals even though he knew that the money was not his, prosecutors said. He used the money to buy jewelry for his girlfriend and to make several investments, they said.

Commerce Bank and Woodlawn Trustees did not immediately respond to a request for comment. The Legal Aid attorney representing Lovell could not be reached for comment either.

Lovell is being held on $3 million bail. He faces up to 25 years behind bars if convicted, prosecutors said.

- REUTERS