Can I request 5% interest on a security deposit that was deposited in escrow but earning under 1%, since it wasn't paid annually

What do you mean by "many years"? Before July 1, 1992 landlord's were required to pay 5% interest on Security Deposits, irrespective of the interest paid by the bank on the account where the security deposit was held.

Unlike several other violations of the statute the statutory terms do not provide penalties for the situation where a landlord does not pay interest annually as the statute directs. The ONLY REMEDY in the statute is in section 3B which provides in part: " If, after thirty days from the end of each year of the tenancy, the tenant has not received such notice or payment, the tenant may deduct from his next rent payment the interest due."

The only other current remedy seems to be sending a so-called 30 day demand letter under the provisions of our Consumer Protection Statute (MGL c. 93A) citing the regulations of the Attorney General on the Landlord-Tenant relationship. Specifically, the regulations say that it is an unfair and deceptive act for the landlord to fail the pay the interest annually. You can demand payment now of all interest owed. See 940 CMR3.17(4)(c). If the landlord fails to pay the interest (or at least offer to pay the interest forthwith) within 30 days you can sue for damages including 2 to 3 times the amount owed, plus a reasonable attorney's fee.

I suggest that you consider well the possibility of having an attorney draft the 30 day demand letter for you.

If you meet with an attorney, he or she will have the opportunity to develop the facts beyond what was available from your question. They can also see if the assumptions I have made about your situation are correct. There may be other remedies available under the Security Deposit law and elsewhere. For instance, I do not know if your landlord provided the mandated information on the bank and account where the security deposit was deposited. If not you can make a demand for immediate return of the security deposit per section 3a of the statute.

The STATUTE can be read at http://www.mass.gov/legis/laws/mgl/186-15b.htm

The REGULATIONS of the Attorney General as they relate to Landlord-Tenant relations can be read at http://www.mass.gov/?pageID=cagoterminal&L=3&L0=Home&L1=Government&L2=AG's+Regulations&sid=Cago&b=terminalcontent&f=government_Regulations_940CMR3&csid=Cago

Good Luck

Law Office of Daniel T. Blake

This response and the information contained herein are not intended to form an attorney-client relationship. The answer provided is based solely on the few facts presented in the question and represents at most a preliminary and hypothetical response. It is for informational purposes only and may not be considered as legal advice. For specific legal advice and recommendations about your particular situation, contact an attorney to schedule a consultation.