bills and deposit

[Mr_Joe]

Hi there,

I have now been contacted with the letting agency, they say they will return my deposit only when i prove my bills are paid in full. It was in contract to do this but i'm sure i read this was an unenforceable condition. It was a joint tenancy so none of the bills were in my name. where do i stand on this?

is there some consumer law i can quote that says bills have nothing to do with deposits and that they are unenforceable in a tenancy contract?

[MrShed]

Whose name were the bills in? When did you move into the property?

[Mr_Joe]

Hi MrShed,

we moved into the property in July 2007 and left in June 2008. The water is one person's, the gas and electricity is in another's and the phone was in my name.

[Mr_Joe]

Just spoke to consumer direct and i asked if the unfair terms in consumer contracts regulations 1999 applies and they as it is land based it might have different terms.

I am going to contact the citizen's advice bureau later to see what they say.

what do you propose i do about court action? i have issued a LBA as i had no contact and i gave them until 10th august to pay me or i would start court proceedings. Now they have given me a reason, even if i do think it is unfair, should i wait or still issue the N1 form?

Thanks

[Mr_Joe]

contacted shelter today and they say that refusing to return deposit because of utility bills is unfair and nothing to do with the deposit. They have recommended that I contact the council and speak face to face with someone who specialises in tenancy law.

They also said that even though the deposit was paid before 6 April 2007 the contract started in July 2007 and so we might be able to claim that it should have been protected in a TDS. Just like if you paid a deposit before and renewed a contract the renewal counts as a new contract and should therefore be protected in a TDS.

Will post more details when I get them.

[Planner]

Originally Posted by Mr_Joe

They also said that even though the deposit was paid before 6 April 2007 the contract started in July 2007 and so we might be able to claim that it should have been protected in a TDS.

This is definatley wrong. Deposits paid before 6th April 2007 for tenancys starting after 6th April 2007 definatley DO NOT have to be paid into a TDS scheme. I wouldnt muddy the waters by bringing this into the equation.

[MrShed]

Originally Posted by Planner

This is definatley wrong. Deposits paid before 6th April 2007 for tenancys starting after 6th April 2007 definatley DO NOT have to be paid into a TDS scheme. I wouldnt muddy the waters by bringing this into the equation.

Are you sure Planner? I was fairly positive it is based upon date of TENANCY commencement.

[Planner]

Originally Posted by MrShed

Are you sure Planner? I was fairly positive it is based upon date of TENANCY commencement.

Positive. The relevant date is when the deposit is taken (Housing Act 2004);

213 Requirements relating to tenancy deposits
(1) Any tenancy deposit paid to a person in connection with a shorthold tenancy must, as from the time when it is received, be dealt with in accordance with an authorised scheme.

And a quick scan of the schemes FAQ;

(TDS)

5 What is the status of deposits paid in advance - usually by students?


5.1 Full deposit was taken before 6 April 2007 (e.g. in March) for an assured shorthold tenancy starting after 6 April 2007 (e.g. in September 2007). Will the deposit need to be protected under a Government-authorised scheme and, if so, at what point?
No deposit taken before 6th April for a tenancy starting after that date will be required to be held under an authorised scheme.

and DPS;

Do I have to secure deposits taken before 6th April 2007?

If you choose to secure your deposits with The DPS, you can secure deposits taken before 6th April 2007 but you do not have to under the terms of the legislation. The legislation only applies to Assured Shorthold Tenancy (AST) agreements signed and deposits taken on or after 6th April 2007, and tenancies which are renewed for a further fixed term after 6th April 2007. It does not apply retrospectively.

BACK TO TOP

[Mr_Joe]

i was told it is a bit of a grey area and that even though the deposit was paid before april 6 it should still be protected because the deposit covers the dates of the contract which started after april 6.

if i paid a deposit 2 years ago but signed a new tenancy agreement now the deposit would have to be protected.

[Mr_Joe]

posted before reading planner's response, looks like i was told incorrectly. I still believe I am correct about the bills though, so will be pursuing that still.

[MrShed]

Fair enough Planner - cheers!

[Planner]

Originally Posted by Mr_Joe

posted before reading planner's response, looks like i was told incorrectly. I still believe I am correct about the bills though, so will be pursuing that still.

Your 100% right about the bills. They are nothing to do with the landlord/agent as debts such as these are against a person not a property and they are not transferable.

Obviously the route of least resistence would be to show that the bills have been paid. If they havent or you dont want to then a letter before action is going to be required (with a filled in N1 county Court CLaim form attahced).

[Mr_Joe]

as ours was a joint tenancy should we be suing collectively or can we take them to court individually?

[Mrs.Wifey]

I have the same clause in my tenancy agreement as well; the deposit will only be returned when we show that all the bills have been paid. Don't see how I can do that as when I move, I transfer all the bills to my new address (and of course any owed amounts follow), but there it is. Guess I'll fight that fight when it happens