County of Los Angeles Consumer Affairs Advisory Commission

Question from Brian in Studio City:

My lease on my apartment expires at the end of the month. My landlord says I have to sign a new lease. I just want to stay on a month-to-month rental agreement basis. My landlord says he’ll kick me out right away if I don’t sign a new lease. Can he do that?

Answer from Commissioner Ho-Jeong Eun

Your lease will convert to a month-to-month rental agreement if the lease expires and you do not sign a new lease. If your landlord wants to force you to move out, then they must present you with a written notice to begin the eviction process. The length of time he must give you to move out depends on how long you have lived in the rental. If you have lived in your rental unit for more than a year, your landlord must give you a 60-day notice to move out. If you lived in the property for less than a year, the landlord is required to give you a 30-day notice.

Question from Debra in Norwalk:

I just moved out of my apartment and I heard that I am entitled to interest on my security deposit. Is that true? I’ve rented the apartment for 8 years and it is not under rent control.

Answer from Commissioner Sylvia Southerland
Commission Vice Chair and 2011 Chair-Elect

State law does not require landlords to pay interest on security deposits. Some rent control ordinances include interest on security deposits, but you do not live in a rent controlled area.

When you move out, your landlord can use your security deposit for:

• Rent you owe;
• Repairing damage caused to the unit, but not ordinary wear and tear; or
• Cleaning if the unit is not as clean as when you moved in.

The landlord must return your deposit within 21 days after you move out or give you a written explanation of the deductions if your full deposit is not returned. If you have not received your deposit back or a written statement of the deductions after 21 days, you can send a letter to the landlord by certified mail asking them to return your entire deposit.

If your landlord does not return the deposit you have the option of filing a claim in Small Claims Court. You can learn more about this process from the Department of Consumer Affairs’ Small Claims Advisors at the Small Claims webpage or by calling (213) 974-9759. More information about Security Deposits is also available on the Department’s website.

Question from Karen in Los Angeles:

I received a letter in the mail saying I could reduce my property taxes. I paid them a lot of money and I want it back. What can I do?

Answer from Commissioner Ho-Jeong Eun
Commission Chair

You may try the following to recover your loss:

1. Stop the payment:

• If your payment was via a personal check or USPS Money Order – try stop payment on your check (cancel the check) or money order. If it is not too late, you may still have a chance of stopping your check or money order from being processed.
• If the company has already cashed your check or money order, you may want to pursue a small claims lawsuit. You can learn more about Small Claims Court on DCA’s Small Claims website.

2. File a complaint with the Los Angeles County Department of Consumer Affairs. You can speak with a counselor at (800) 973-3370 or print a complaint form online.

It is easier to prevent these scams than to recover the money afterwards. To prevent becoming a victim of a scam in the future, it is crucial to become an educated consumer. You can shield yourself from consumer scams in the future by reviewing fact sheets on the Department of Consumer Affairs website.

Question from Charlie in Agoura Hills:

I am a tenant and my landlord lost the property I live in to foreclosure. I don’t mind moving out and a friend said I should try to get cash for keys. What is cash for keys?

Answer from Commissioner Dionne Faulk

“Cash For Keys” is a voluntary offer made on behalf of the new owner or its agent to vacate (leave) the property. Sometimes the new owner is a Real Estate Agent acting on behalf of the bank and can only contact the tenant after foreclosure proceedings have occurred. The new owner (or its representative) is required to give the current tenant 90 days written notice to vacate before legal action against the tenant can be taken. Before you accept a “Cash For Keys” offer, you should get the agreement in writing and make sure the person you are negotiating with is authorized to act on behalf of the owner. I would recommend consulting a legal professional or check with your local free resources such as the Department of Consumer Affairs. You can also learn more about Cash for Keys from a recent Department of Real Estate publication.

Question from Quinn in Downey:

I moved out of my apartment over a month ago which I rented on a month-to-month agreement. My landlord did not have time to do a walkthrough inspection before I left, but I gave him my new address so he could mail me my security deposit. It has been more than 21 days since I left and I still have not received my deposit or a written list of the deductions. Am I entitled to receive my entire deposit back at this point?

Answer from Commissioner Sylvia Southerland
Commission Vice Chair

When you move out, your landlord can use your deposit for:

• Rent you owe;
• Repairing damage caused to the unit, but not ordinary wear and tear; or
• Cleaning if the unit is not as clean as when you moved in.

The landlord must return your deposit within 21 days after you move out or give you a written explanation of the deductions if your full deposit is not returned. If you have not received your deposit back or a written statement of the deductions after 21 days, you can send a letter to the landlord by certified mail asking them to return your entire deposit.

If your landlord does not return the deposit you have the option of filing a claim in Small Claims Court. You can learn more about this process from the Department of Consumer Affairs’ Small Claims Advisors at the Small Claims webpage or by calling (213) 974-9759.

You can also learn more about Security Deposits on the Department’s website.

Question from Laurie from Los Angeles:

My car was recently repossessed. I had some very important paperwork in my back seat. How can I get it back?

Answer from Commissioner Ho-Jeong Eun
Commission Chair

California law specifically protects personal items left in a repossessed car (California Business & Professions Code Section: 7507.9). Within 48 hours from the time they take your car (72 hours if falls on a weekend or postal holiday), the repossession company must send you contact information for the repossession yard, an inventory list of the things in your car, and tell you how to get your personal items back. If you do not pick them up within 60 days, they can get rid of them. Please visit the DCA website for additional information on Vehicle Repossessions.

Question from Marley in Santa Clarita:

I’m receiving calls at 10:00 pm every night from a collection agency regarding an old debt. They won’t stop calling and they keep telling me I’m going to jail if I don’t pay them. Are they allowed to harass me like this?

Answer from Commissioner Stanley Rogers

There is no “debtors’ prison” in the United States. You will not go to jail for failing to pay and the debt collector’s abusive threat of jail is against the law. Debt collectors may only call you between the hours of 8:00 am and 9:00 pm.

By law, debt collectors cannot:

• Repeatedly call to harass you;
• Use foul language when talking to you;
• Threaten to sue you if they don’t intend to do it;
• Tell you they are an attorney, a police officer, or someone else they are not; or
• Threaten to have you arrested, put you in jail, or physically harm you.

To make the debt collector stop contacting you, send them a letter by certified and regular mail telling them not to contact you. Keep a copy for your records. After they get your letter they can contact you only one more time to tell you what they are going to do. If they continue to harass you, please file a complaint with the Department of Consumer Affairs. You may have grounds to sue a debt collector if they use abusive collection tactics.

Question from Becky in Studio City:

How much can I sue for in Small Claims court? Are there any limits on the number of law suits I can file?

Answer from Commissioner Helen Levin

The maximum amount you can sue for in Small Claims Court depends on whether you are an individual or a business and how many claims you have already filed this year.

An individual or a business owned by an individual can file two cases each year for as much as $7,500. For each additional case filed that year, you can only sue for $2,500 or less.

All other businesses or corporations can file two cases each year for as much as $5,000. Additional cases filed that year can only be for $2,500 or less.

Question from Tom in Pasadena:

I think I may have made a mistake and given out my personal information to the wrong kind of people. What are the warning signs I should look out for to know if I am a victim of Identity Theft?

Answer from Commissioner Eugene Masuda

I am sure that you have learned from your mistake, so please be very careful with letting out your personal information. We all must be proactive in this regard.

Some of the warning signs that you are a victim of identity theft are:

• Your credit card statement has charges you did not make;
• You get bills for accounts you never opened;
• You are denied credit for no apparent reason; or
• Money is missing from your bank account.

If your identity is stolen, then I would recommend then you do the following:

• Get a copy of your credit report. Note accounts you did not open and account balances that are suspiciously high.
• Contact the major credit reporting companies. Ask them to place a “Fruad Alert" on your report. This alerts businesses to verify your identity before issuing credit and stops thieves from opening new accounts in your name.
• File an “Identity Theft Police Report” at your local police station and keep a copy of the police report.
• Contact companies that have reported accounts you did not open or charges you didn’t make. Send them a copy of your police report and a certified letter disputing the fraudulent charges.

You can also learn more about identity theft on the Department of Consumer Affairs website or call the department’s identity theft unit at (213) 974-9459.

Question from Dan in East LA:

The cashier at a local store keeps charging me more for my purchases than the price listed on the sign on the shelf. She says that the sign is old or wrong and the scanner always provides the right price. Is it legal for them to charge me more than the price shown on the sign?

Answer from Commissioner Dionne Faulk

It is bad business practice to maintain incorrect pricing in stores and by law you are entitled to the lowest advertised, posted or quoted price offered by the store. Stores are required to honor a posted price, even if the price has expired. Consumers should always report incorrect pricing information to the store manager. Reputable businesses should be happy that the consumer brought the problem to their attention.

If you are overcharged, please contact the Los Angeles County Department of Weights and Measures and file a complaint. They investigate overcharges. Contact information for Weights and Measures should appear on a large yellow sticker posted on the store’s scanner. The telephone number for the Department of Weights and Measures is 800-665-2900.

Question from Lilly from Los Angeles:

We have signed a lease for two years, however will need to move out after one year. Can our landlord hold all of our deposit for this reason?

Answer from Commissioner Sylvia Southerland

If you want to move before your lease is over, you should notify your landlord as soon as possible so he can try to rent the unit to someone else. You may have to pay rent for the time the rental is vacant until your lease expires. You may also have to pay the landlord’s costs for finding a new tenant. You should try to negotiate the terms and conditions of breaking your lease with your landlord.

You can also read your lease to see if it allows you to sublet the rental unit. Subletting means that you rent the unit to someone else. If the lease allows you to do this, you can look for another tenant to take over your lease.

When you move out, your landlord can use your deposit for:

• Rent you owe;
• Repairing damage caused to the unit, but not ordinary wear and tear; or
• Cleaning if the unit is not as clean as when you moved in.

The landlord must return your deposit within 21 days after you move out or give you a written explanation of the deductions if your full deposit is not returned. If the landlord wishes to withhold part of the security deposit for unpaid rent from the remainder of the lease, he must provide details in the written explanation to you within 21 days.

If your landlord does not return the deposit or if you disagree with the amounts deducted, then you have the option of filing a claim in Small Claims Court. You can learn more about this process from the Department of Consumer Affairs’ Small Claims Advisors at the Small Claims webpage or by calling (213) 974-9759.

You can also learn more about Leases and Security Deposits on the Department’s website.

Question from Ramon in Alhambra:

I’ve lived in my apartment for 5 years. I have a month-to-month rental agreement and the landlord keeps raising my rent. Some of the rent increases have been really big. Is this legal?

Answer from Commissioner Marcelle Penn Mathis

Most month-to-month rental agreements allow a property owner or landlord to increase your rent unless the agreement specifically says rent increases are limited or not allowed. Landlords can increase the rent as often as they like but all rental increases must be in writing. The landlord may mail or deliver a copy of the notice to you personally.

If the rent increase is 10 percent (or less) of the rent charged at any time during the 12 months before the rent increase takes effect, then the landlord must give you at least 30 days advance written notice.

If the rent increase is greater than 10 percent of the rent charged at any time during the 12 months before the rent increase takes effect, then the landlord must give you at least 60 days advance written notice.

The rent increase can take effect in 30 or 60 days from the date the notice is delivered.

Other rental increase restrictions may apply if you live in government-financed housing or in a city with rent control (although if you live in the City of Alhambra, then there is no rent control in your area).

Question from Neil in Los Angeles:

I paid rent on the 6th of the month ($795). The lease states rent should be paid by 1st or there is a $75 late fee. Is this a reasonable late fee? Do I have to pay it?

Answer from Commissioner Ho-Jeong Eun
Commission Chair

Landlords can only charge a late fee to a tenant if the lease or rental agreement contains a late fee provision. The late fee must be reasonably related to the costs the landlord faces as a result of your rent payment being late. An example of a reasonable late fee would be the cost to the landlord if his mortgage payment to the bank for the property is late. The language in the rental agreement must state the late fee is an agreed upon amount and the actual amount of damages is impracticable or extremely difficult to fix (see California Civil Code 1671). You may be able to negotiate with your landlord to waive the late fee if you are unable to pay rent on time for a good reason.

If you live in the City of Los Angeles, you may have additional protections under LA City’s rent stabilization ordinance.