Nasty landlords give all us LLs a bad name.
The fact that she did not comply with the 21-day rule makes it worthwhile for you to pursue this (I assume you have the date-stamped envelope from her).
File a claim for the full $1700), after first sending her a demand letter.
Good chance the judge will award you the remainder of the deposit. They properly assume the LL is the party that should know and strictly comply with the law.
