What is rent deposit and utility deposit?

My apartment complex used my security deposit to pay rent and now my account is all screwed up Is that legal?

• I moved into my apartment in April 09 in New Jersey. When we moved in we were required to pay a month and a half security deposit which was $2278 among other fees which were paid in full. At the time the complex was offering a $500 security deposit special however because of your credit and income we did not qualify. The management company sent us bills every month and we always paid the full balance that we owed on time. However, in Aug 09 we paid rent in full and on time and 2 weeks later we received a letter on our door saying that if we dont pay our full rent plus late fees our account will be sent to an attorney. We were confused by this because we knew we had paid our rent in full. We called the management company and after going back and forth they told us that we only paid a $500 security deposit and we owed $1778 We informed them that they were incorrect and had the documentation signed by us and the leasing agent showing that we paid $2278.What we found out that they did was use the balance after the 500 dollars and paid it towards the rent without us knowing months prior sometime in May or June When we moved in they told us since we didnt qualify for the $500 security deposit we qualifed for 6 weeks free. So when we recieved a bill that said we had a credit we assumed it was from the special not from our security deposit which should of been in a total seperate account earning interest! So when we paid our Aug rent they took that and applied it to the rest of the security deposit. And than charged us late fees for technically not paying Aug rent when we thought we did. No one ever called us, sent us a letter, nothing to inform us of this mistake. We only were notified when they said they were going to take us to court. We went down to talk to the leasing agents and the said sometimes they make mistakes when entering the information and now they must of just audited it and theres nothing they can do to help us we have to just pay it. I find this to be obsurd that they would tell us that we HAVE to have a security deposit of 2287 and than let us live there for almost 5 months and than realize that they screwed up. We saved up our money for months to move into this apartment and told them we didnt just have this extra money lying around. So now when we paid Sept rent it technically went towards Aug and when we paid Oct rent it went towards Sept. So now our account has over $1000 in late fees + $1500 in back rent. They just served us wiith court papers and are also charging us with $700 in attorney fees. So my question is whether i have a shot of explaining our situation and how they misapplied our security deposit to the court or if i should just begin looking for a new place to live.

• Answer:

  Please use paragraphs and summarize. It is too hard to follow this story. But it sounds like you have documentation so, why have you let this go on since August? If the leasing office won't help you, go over their heads to the corporation that owns the apartment to demand help. But first, condense and edit your argument so some one will actually be willing to read it.