Request Letter for Refund of Security Deposit from a Company

Utility companies offer services like water, gas, and electricity. If you have a bad credit history or a record of late utility payments, you might be required to pay a security deposit. This is also a common requirement when you are establishing a new utility account. The company will usually hold on to your deposit until you have established satisfactory payment history.

A security deposit should be refunded if you repay all your utility bills on time for one year. Utility companies are also required to pay interest on the deposit. If you don’t receive this amount, you can demand it through a request letter to refund the company’s security deposit.

Here is everything you need to know about drafting this letter.

When a utility company requests a security deposit, they will usually do it through a formal letter. The letter will entail the amount and reason for the deposit. It will also include an interest and refund policy. You should base your refund request on these two policies. Generally, you must show the following to qualify for a security deposit refund:

  • That you have no more than four late payments
  • You have not tampered with the company’s fixtures.
  • You don’t have an outstanding balance due.
  • You have not had any disconnections for non-payment in the last 12 months.

You can establish these fats in your letter by mentioning them and attaching the relevant documents to prove your claim. Other vital details to include in your request letter for refund of the security deposit from the company include:

  • Your home or apartment name and address
  • The date for when you established your account
  • The amount of security deposit you paid
  • A statement indicating your payment record for the last year
  • A formal refund request
  • The utility company’s name and address
  • Your official name and signature
  • Your contact information

Request Letter for Refund of Security Deposit from Company (Format)

{Date}

{Utility Company Name}

{Utility Company Address}

{City, State, Zip Code}

Re: Refund Request for Security Deposit

Dear Sir/Madam,

I am a {tenant/homeowner} at {home address}. Your utility company has been providing me with {gas/water/electricity} for 12 months since {start date}. As per your company policy, I paid a security deposit of {amount in dollars} when I opened my account. I am writing to request a refund.

I have attached my utility bills and receipts for the last 12 months. As you will see, I have been making timely payments and have established a good payment record. I am, therefore, entitled to a full refund plus interest by {due date}.

If you wish to discuss this matter further, you can contact me at {contact information}. I look forward to hearing from you soon.

Thank you for your time and assistance.

Sincerely,

{Your Name}

{Apartment Name/Address}

Sample Request Letter for Refund of Security Deposit from Company

10 October 2030

Jersey Lighting Company

123 Main Street

Jersey City, NJ 34567

Re: Refund Request for Security Deposit

Dear Sir/Madam,

I rent an apartment on 456 Garden Grove, Jersey City. Your company has been providing me with electricity since 5 October 2030. At your request, I made a $4,500 security deposit when establishing my account. I am writing to request a refund.

I believe I have established a satisfactory payment record. Please find attached copies of my utility bills and payment receipts for the last year. If they are to company standards, I expect to receive my security deposit plus interest by 15 October 2030.

If you wish to further discuss this matter, you can reach me at 123 3456 345 or email @ web .com. I look forward to a speedy resolution of this matter.

Thank you for your time.

Sincerely,

Hellen Mills

Red Oak Apartments

Jersey City

Request Letter for Refund of Security Deposit from Company (Word Template)

Details
File Format
  • MS Word

Final Thoughts

If you pay all your bills on time for 12 months, your utility provider should refund your security deposit. Failing to do so is an infringement of your consumer rights. Fortunately, you can use a well-drafted request letter to remind the utility company of their duty.

When drafting your request letter for refund of the security deposit from company, maintain a polite and professional tone. Explain why your refund is due and attach the necessary documents to prove your claim. It is also crucial that you include the appropriate recipient and sender addresses.