I started an AST via a letting agent on 11/12/2009 to 10/12/2010. I paid a £600 deposit. In november 2010 I recieved notice that the flat i was renting would be repossessed on 7/12/2010 as the landlord had not kept up with the mortgage payments. I spoke to the letting agent and agreed to move out at the end of my tenancy agreement. I moved out and handed the keys back to the letting agent and they completed the final inspection. They confirmed that my deposit would be returned to me in full without deductions and that their manager would be in touch with how I make a claim for my deposit. I then recieved an email saying the letting agent had gone into liquidation in June 2010. They said that my deposit had been held in their client money account, and the bank the account was held with has illegally (or so they say) used this account in the liquidation so they were having to take said bank to court to recover that account and the monies held in that account so they would not be able to return my deposit. They advised they held client money protection insurance with NALS (National Approved Lettings Scheme) so I would have to claim my deposit back from them. I asked about claiming it back via the TDS and they said that due to the liquidation the deposit was no longer protected by them as of 1/9/2010. The Letting agent continued to trade under a new name and continued to be my letting agent. They did not advise me of the liquidation or the name change, only that they had moved offices. They did not advise that my deposit was no longer covered and neither did TDS. They did not, as my 'new' letting agent reprotect my deposit. So from September 2010 to December 2010 my deposit was not covered. I have made a claim with NALS but am yet to discover if anyone has sucessfully claimed anything back from them and they are unable to advise how long this claim will take. My letting agent have completed washed their hands of responsibility and say I must deal with NALS from now on. Can I take the LA to small claims on the fact that they did not protect my deposit? Or would I have to go direct to the Landlord himself? Any advice if greatly appreciated