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 (Word Template)

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.