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anteros

Deposit Protection

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Hi People

I was just wondering if someone who knows a little more about the new regulations re: deposit protection could provide some clarification and if poss. a link.

I have just received a letter from TDS advising me that my letting agent no longer fulfills the criteria to be in this scheme and as of early next month (the date escapes me at the moment) my deposit is no longer protected. I personally would just leave the property nut the girlfriend isn't so keen on that for some reason :angry:

So I was just wondering if we would be entitled to insist on our deposit back while still remaining in the property as the regulation state that our deposit must be in a protection scheme? Sorry if this is a little poorly written but just had a few glasses of wine 2nite.

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AFAIK, in a sense, this is (mildly) good news for tenants; the objective is to force letting agents into a registration scheme (ARLA or similar) thereby - in theory at any rate - weeding out the cowboy fly-by night agents.

Your LL should simply move the deposit into another scheme - you should ask him ASAP which one he proposes to use, as the LA won't be keen to inform him that they no longer qualify.

I don't think this entitles you to end the contract or demand your deposit back; it's the LL who has to act pretty quickly.

This is off-the-cuff memory, so check it out!!

Edited by cartimandua51

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sounds to me this is an insurance based scheme where the agent or the landlord keeps the deposit, most likely the agent in this case.

suggests the agent is financially unstable....

The LL will have to have the deposit moved to a deposited scheme immediately otherwise you can claim the penalty.

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My advice is get in touch with the LL informing them of the letter. Ask which TDS they will be joining now. I suggest you do your best to push the LL to move the deposit somewhere else, because otherwise it will cause hassle in getting the deposit back when you leave.

You cannot ask for the deposit back and just stay in the house. The LL needs to have the deposit placed in a protection scheme.

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It is some months since TDS declared its intention not to renew the scheme for non accredited agents and so your agent will already know and should really have notified you of alternative arrangements.

It is correct that the LA holds the deposit and not TDS. ARLA members have to provide evidence that the bond monies are held in a client money account and a Chartered Accountant has to verify that all is in order each year.

You need to ring the agent immediately and find out what scheme it has been placed in. Or........don't know whether the 14 days 3 x deposit applies in this instance.................?

Out of interest did the letter say from what date the deposit was no longer protected?

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Ultimately, it's the LL's responsibility to ensure your deposit is protected, the LA is just their agent acting on their behalf.

You need to speak to the LL, and make sure the deposit is moved to a new scheme. If the LA holds the money, and he has trouble getting it, that's his problem not yours. I think he would need to stump up the same amount to another TDS scheme to comply with the law, even if he can't get the cash from the LA.

Send a letter asking for your deposit to be protected in a new scheme, and for you to receive information from the scheme within 14 days of the current protection expiry. If you do not receive within 14 days, then you can lodge a claim and the LL may have to pay you 3x the deposit.

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Ultimately, if things really do go pear shaped and/or you're not confident that he'll be able to pay your deposit back, just don't pay him the last month's rent (i.e. stop the standing order after the penultimate payment) and write to him telling him to take the deposit in lieu.

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It is some months since TDS declared its intention not to renew the scheme for non accredited agents and so your agent will already know and should really have notified you of alternative arrangements.

It is correct that the LA holds the deposit and not TDS. ARLA members have to provide evidence that the bond monies are held in a client money account and a Chartered Accountant has to verify that all is in order each year.

You need to ring the agent immediately and find out what scheme it has been placed in. Or........don't know whether the 14 days 3 x deposit applies in this instance.................?

Out of interest did the letter say from what date the deposit was no longer protected?

Hi again, Thanks for the responses.

The correspondence we received started around 3-4 months ago. First we received an unannounced letter from TDS (The Dispute Service) Addressed to 'The Tennant' Basically informing us that our letting agency no longer fulfilled the criteria for their scheme to protect the deposit, if I remember correctly it was something to do with the agents no longer being in an approved body (ARLA, NAEA etc.) and that they would only be protecting the deposit for either the next 3 months or until you had lived in the property for 12 months (we fell into the latter category) on receipt of this letter we questionned the LA on the next tennancy visit, and were informed that it was an administrative error, and the letter shouldn't have been sent and to ignore the letter :huh:

So we didn't think anymore about it then about 8 weeks ago we got a letter from the letting agency advising us that we would soon be receiving a letter from TDS which basically told us not to worry about its contents (Admin Error again!) :o

Finally about a fortnight ago we got the last official letter from TDS saying that as of the 7th of July our deposit was no longer protected and we should speak to the LA to see what alternative arrangements were in place. I was pretty p1ssed at this point so my girlfriend rang the agency and the p1ll0ck 'lettings manager' just said and I quote 'Don't worry we are sorting in and we aren't going anywhere' I have now arranged a face-to-face meeting with the owner of the LA next week to get to the bottom of this. Sorry for rambling a bit, but just fed up, I F*****G hate Renting ARRRGH!!! I Really REALLY REALLY Hate it!!!

Thanks for all the responses.

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Hi again, Thanks for the responses.

The correspondence we received started around 3-4 months ago. First we received an unannounced letter from TDS (The Dispute Service) Addressed to 'The Tennant' Basically informing us that our letting agency no longer fulfilled the criteria for their scheme to protect the deposit, if I remember correctly it was something to do with the agents no longer being in an approved body (ARLA, NAEA etc.) and that they would only be protecting the deposit for either the next 3 months or until you had lived in the property for 12 months (we fell into the latter category) on receipt of this letter we questionned the LA on the next tennancy visit, and were informed that it was an administrative error, and the letter shouldn't have been sent and to ignore the letter :huh:

So we didn't think anymore about it then about 8 weeks ago we got a letter from the letting agency advising us that we would soon be receiving a letter from TDS which basically told us not to worry about its contents (Admin Error again!) :o

Finally about a fortnight ago we got the last official letter from TDS saying that as of the 7th of July our deposit was no longer protected and we should speak to the LA to see what alternative arrangements were in place. I was pretty p1ssed at this point so my girlfriend rang the agency and the p1ll0ck 'lettings manager' just said and I quote 'Don't worry we are sorting in and we aren't going anywhere' I have now arranged a face-to-face meeting with the owner of the LA next week to get to the bottom of this. Sorry for rambling a bit, but just fed up, I F*****G hate Renting ARRRGH!!! I Really REALLY REALLY Hate it!!!

Thanks for all the responses.

Sorry I've been on holiday for a week and so not seen your response.

This really is totally unacceptable behaviour from your letting agent as it has been common knowledge in the industry for some time, however as it is protected until the 7th July I shouldn't worry too much. Try and get them to send you an email to say which scheme the deposit will be placed in as they should have this in a client account.

I am still trying to find out if these non accredited agents can be sued for 3 x times deposit after being booted out by the TDS!

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Sorry I've been on holiday for a week and so not seen your response.

This really is totally unacceptable behaviour from your letting agent as it has been common knowledge in the industry for some time, however as it is protected until the 7th July I shouldn't worry too much. Try and get them to send you an email to say which scheme the deposit will be placed in as they should have this in a client account.

I am still trying to find out if these non accredited agents can be sued for 3 x times deposit after being booted out by the TDS!

My experience with the The Dispute Service left me with a very poor opinion of them. They introduced arbitrary restrictions not mentioned in their terms and conditions when I applied to join their scheme. When challenged they asserted that the conditions were always part of their scheme but could not produce any documentary evidence to refute the rules I had printed out with my application. Bunch of cowboys if you ask me.

Far more satisfactory is "mydeposits.co.uk". An insurance based scheme that works well for me. I'm only speaking from a landlords perspective, but then I've only had to withhold part of one tenants deposit. How well it works for a tenant I can't say.

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Sorry I've been on holiday for a week and so not seen your response.

This really is totally unacceptable behaviour from your letting agent as it has been common knowledge in the industry for some time, however as it is protected until the 7th July I shouldn't worry too much. Try and get them to send you an email to say which scheme the deposit will be placed in as they should have this in a client account.

I am still trying to find out if these non accredited agents can be sued for 3 x times deposit after being booted out by the TDS!

As it is the landlord that you sue, the answer must be no

tim

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As it is the landlord that you sue, the answer must be no

tim

Well yes LA acting for LL - what I meant was can anyone be sued second time around as I don't imagine they thought that one through?

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