Deposit not paid into TDP Scheme – what now?
Discussion
The OH and I started renting a house privately (i.e., not via an agency) in mid-February. We left at the end of October in order to downsize so we can save more toward a deposit on a place of our own. What I wasn’t aware of is that, within 14 days of the tenancy beginning, the tenant(s) should have been notified in writing of the particular Tenancy Deposit Protection Scheme being used by the landlord. This obviously never happened as we never had a letter from a TDP Scheme. I knew that TDP Schemes had to be used, but I only discovered that tenants should receive the details in writing a few days ago when I started searching online to find out how long a landlord has to return a deposit. It'll be ten days tomorrow, which I believe is the maximum.
Given the nature of the landlord I have my doubts that the deposit will be returned and can safely bet that it never went anywhere near a TDP Scheme. There’s a website giving details of TDP Schemes which states that a landlord who doesn’t pay the deposit into a TDP Scheme can be taken to the county court and that the court has to order the landlord to pay the deposit back to the tenant, along with compensation equal to three times the deposit, but what it also says is that you still have to be a tenant of the property by the time the case goes to court, so that doesn’t help us as we’ve already moved out. We’re not actually bothered about screwing him out of a load of money – particularly as he knows our new address – but we would like to make sure we get our deposit back promptly. Does anyone know what we can do about this?
Given the nature of the landlord I have my doubts that the deposit will be returned and can safely bet that it never went anywhere near a TDP Scheme. There’s a website giving details of TDP Schemes which states that a landlord who doesn’t pay the deposit into a TDP Scheme can be taken to the county court and that the court has to order the landlord to pay the deposit back to the tenant, along with compensation equal to three times the deposit, but what it also says is that you still have to be a tenant of the property by the time the case goes to court, so that doesn’t help us as we’ve already moved out. We’re not actually bothered about screwing him out of a load of money – particularly as he knows our new address – but we would like to make sure we get our deposit back promptly. Does anyone know what we can do about this?
One needs to consider both the wording of the legislation, The Housing Act 2004, together with the wording of the Tenancy Deposit Schemes (TDS), and the various Landmark High Court Judgments covering the same.
To comply with both the legislation and the TDS, a landlord has both to protect a Deposit within a TDS, AND to notify the tenant/s of the same, together with details of the workings of that TDS.
Whilst a Deposit is not protected by a landlord, then that landlord cannot serve the tenant/s with a Section 21 Notice, terminating the tenant/s tenancy.
The Courts in handing down their Judgments, have accepted that where a Deposit has not been protected by the landlord, then so long as the landlord protects the Deposit before the case arrives at Court, then the landlord will escape any penalty.
In light of the above Judgments, I see (I am a landlord) no benefit in you either informing your landlord of their failure to protect your Deposit, or of you taking legal action against your landlord. In fact I see a considerable benefit for you of not taking any action against him, that is until he refuses to refund your Deposit, then you take the matter to your local small claims court, where the court will dish out their appropriate punishment.
To comply with both the legislation and the TDS, a landlord has both to protect a Deposit within a TDS, AND to notify the tenant/s of the same, together with details of the workings of that TDS.
Whilst a Deposit is not protected by a landlord, then that landlord cannot serve the tenant/s with a Section 21 Notice, terminating the tenant/s tenancy.
The Courts in handing down their Judgments, have accepted that where a Deposit has not been protected by the landlord, then so long as the landlord protects the Deposit before the case arrives at Court, then the landlord will escape any penalty.
In light of the above Judgments, I see (I am a landlord) no benefit in you either informing your landlord of their failure to protect your Deposit, or of you taking legal action against your landlord. In fact I see a considerable benefit for you of not taking any action against him, that is until he refuses to refund your Deposit, then you take the matter to your local small claims court, where the court will dish out their appropriate punishment.
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