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Cassie

If A Letting Agent Doesn't Protect Bonds?

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I am just wondering what happens if a letting agency is not paying any bonds into a scheme? I know that tenants can claim three times the value back, but will they be likely to be shut down?

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I am just wondering what happens if a letting agency is not paying any bonds into a scheme? I know that tenants can claim three times the value back, but will they be likely to be shut down?

Agents can actually keep the deposit money in their own account, provided they pay a fee to one of the schemes. They don't have to physically give all the deposit money to the government-run deposit scheme if they prefer not to.

If they don't insure the deposit with Mydeposits or similar they are breaking the law and can have to pay 3 times the deposit if asked. How easy this is to enforce if they just won't pay, I am not sure....

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So you're saying they don't have to pay the full deposit taken into the tds? That doesn't seem right as details need to be given to tenants within 14 days, surely they'd have questions if it was the wrong amount?

Lets just say that no money is going into any tds, as this is illegal can trading standards do something? There are only a few schemes approved, so wouldn't take long to check up on.

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I am just wondering what happens if a letting agency is not paying any bonds into a scheme? I know that tenants can claim three times the value back, but will they be likely to be shut down?

Are you a landlord or a tenant?

If the former, you may be liable for penalties, so you should make d*** sure someone protects the deposit (and if the agent isn't doing it, what the **** are you paying them for)?

If the latter, I'd suggest writing to the landlord to point out that the agent isn't doing the job, and pointing out the relevant law.

In either case, I'd be concerned that an agent ignoring one law might be failing in other parts of the job, such as meeting safety standards!

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So you're saying they don't have to pay the full deposit taken into the tds?

I think you have misunderstood Kingsgate's response. They dont have to pay ANY of the tenancy deposit into a TDS is they are using one of the two insurance backed schemes.

What they do is pay a fee to the scheme to 'insure' the deposit and then keep the full deposit in their own ring fenced account.

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