An alternative to a security deposit should not cost you more.

If you used or were required to use a security deposit alternative product from Obligo, SureDeposit, DepositIQ or a similar company, you may be able to pursue compensation through a security deposit lawsuit.

What to know about the security deposit alternative class action lawsuit investigation

• Core Issue: Attorneys are investigating whether renters were misled about how security deposit alternatives work, what they cost and what protections they provide.

• Who it Affects: Renters nationwide who used or were required to use a security deposit alternative product, including programs offered through Obligo, Zero Deposit, SureDeposit and more.

• Harm/Impact: Renters may have paid more than expected, incurred unexpected fees or charges, been enrolled without a meaningful choice or had limited opportunities to review and dispute charges.

• Legal Status: Attorneys are reviewing potential claims from renters nationwide to determine whether security deposit alternative companies violated consumer protection laws.

• Take Action: Fill out the form on this page to see if you may qualify to take legal action.

What is the security deposit alternative class action lawsuit investigation about?

Attorneys are investigating whether renters received clear and accurate information about the costs, terms and protections associated with security deposit alternative products, including security deposit insurance. They are also examining whether the companies offering these products used practices that violated consumer protection laws.

The investigation includes allegations that:

• Renters paid nonrefundable fees instead of a traditional security deposit they could potentially recover
• Some landlords required renters to use these products or did not offer a meaningful choice
• Marketing materials did not clearly explain the total cost of the product or the limited benefits provided to renters
• Renters did not receive the same protections that state laws generally provide for traditional security deposits
• Some renters paid more overall or were charged for both a traditional security deposit and an alternative product
• Additional products or services were bundled with the security deposit alternative without clear disclosure
• Renters had limited opportunities to review, challenge or resolve charges 

If you used a security deposit alternative — whether you chose it or your landlord required it — you may qualify to take legal action. Fill out the form on this page to learn more.

Case updates

Legal status as of August 2026

• Attorneys are actively investigating consumer protection claims against security deposit alternative companies. 

This page was last reviewed and updated in August 2026 to reflect the latest case developments.

What is a security deposit alternative?

Renting a house or an apartment often comes with significant upfront costs, such as a security deposit and first and last months’ rent. For a smaller upfront or recurring fee, a security deposit alternative allows a renter to move in without paying a massive upfront fee. 

Unlike a traditional security deposit, the fees paid for these products may not be refundable.

Additionally, security deposit alternatives — sometimes marketed as security deposit insurance or rental deposit alternatives — are generally designed to protect the landlord, not the renter. They provide the landlord with financial protection against missed rent payments, property damage and other lease-related charges.

If a security deposit alternative company reimburses the landlord for a claim, the renter may still be responsible for repaying that amount. Depending on the claim, this could leave a renter owing thousands of dollars in addition to the fees already paid.

How can security deposit alternatives affect renter rights?

Traditional security deposits are regulated by state law. Depending on the state, landlords may be required to:

• Hold security deposits in a separate account
• Return the deposit within a specified period after the renter moves out
• Provide an itemized list of any deductions
• Pay interest on the deposit

Because a security deposit alternative is not legally treated as a traditional security deposit, renters may not receive the same protections. Attorneys are investigating whether companies and landlords clearly disclosed these differences.

Fill out the form on this page to see if you qualify for a free case evaluation.