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If the tenant under a shorthold tenancy pays a deposit (often called a "rent deposit") on or after 6 April 2007, the landlord must comply with the Housing Act 2004 in relation to that money.

 

A deposit paid before that date is NOT protected by the Act, even if the tenancy is renewed after that date by the signing of a new tenancy agreement. (This was the decision in the only reported case on the point: see http://www.consumeractiongroup.co.uk/forum/residential-commercial-lettings/138758-tenancy-deposit-case-section.html#post1480018)

 

The Act applies to any money intended to be held (by the landlord or by someone else, e.g. the letting agent) as security for the tenant's compliance with the provisions of the tenancy agreement. For example, money held as security for the tenant paying the rent and keeping the premises in good repair.

 

The Act requires the landlord to give the tenant written notice in a prescribed form, containing the details of the particular tenancy deposit scheme by which the deposit is protected.

 

That notice must be given to the tenant within 14 days of the date the deposit is paid, except that in the case of a formal renewal the 14 days runs from the date of the new tenancy agreement.

 

The landlord can only arrange to be part of the scheme during those 14 days. Therefore he cannot later rectify a failure to comply.

 

Details of the Housing Act 2004, relating to Tenancy Deposit Schemes, are on-line at Housing Act 2004 (c. 34)

 

 

Two Types of Tenancy Deposit Scheme

 

There are two types of tenancy deposit scheme: a custodial scheme, and an insurance scheme. The landlord can use either type.

 

A custodial scheme is where the landlord pays the deposit into a designated account held by a scheme administrator, and the money is held by the administrator instead of by the landlord.

 

An insurance scheme is where the landlord holds the deposit on the basis that, at the end of the tenancy, any amount in dispute will be paid to a scheme administrator, and the administrator takes out an insurance policy against any failure by the landlord to do so.

 

A summary of each type of scheme is set out below. For the details, see Schedule 10 of the Housing Act 2004 at Housing Act 2004 (c. 34)

 

In both types of scheme, the administrator is an independent third party, authorised under the Act to manage that type of scheme: Who runs the tenancy deposit protection schemes? : Directgov - Tenancy Deposit

 

 

Custodial schemes

 

The landlord must pay an amount equal to the tenant's deposit into a designated account held by a scheme administrator.

 

The administrator normally keeps the interest that accrues on the money, to fund the cost of the scheme.

 

 

When the tenancy ends, under a custodial scheme the tenant can apply to the administrator for the whole or part of the deposit to be paid out to the tenant.

 

If the tenant and the landlord agree on the amount to be paid to the tenant, the administrator will pay it within 10 days.

 

If the Court decides who the money is payable to, once the decision has become final (i.e. the time for making an appeal has run out), the administrator will pay the money out within 10 days, in accordance with the Court order.

 

A Court decision becomes final —

(a) if not appealed against, at the end of the period for bringing an appeal, or

(b) if appealed against, at the time when the appeal (or any further appeal) is disposed of.

 

An appeal is disposed of —

(a) if it is determined and the period for bringing any further appeal has ended, or

(b) if it is abandoned or otherwise ceases to have effect.

 

 

Insurance schemes

 

The landlord must give the scheme administrator an undertaking to comply with the administrator's instructions concerning repayment of the deposit to the tenant.

 

The administrator then takes out an insurance policy, against any failure by the landlord to comply with the administrator's directions.

 

The landlord's membership of the scheme can be terminated by the administrator if he fails to comply with the administrator's directions, which may harm the landlord's ability to let properties.

 

The landlord pays a fee to the administrator towards the cost of the scheme, and also contributes to the cost of the insurance policy.

 

Additionally, the administrator normally retains any interest accruing on the money, to help fund the cost of the scheme.

 

 

When the tenancy ends, under an insurance scheme the tenant notifies the administrator once he has requested the landlord to repay the whole or part of the deposit, if the landlord has not done so within 10 days of the request.

 

The administrator must then direct the landlord to pay an amount equal to the disputed amount to the administrator within 10 days.

 

Once the Court has decided who the disputed amount is payable to and the decision has become final, or the tenant and landlord have agreed who the disputed amount shall be paid to, the administrator must pay out the money he holds in accordance with the decision or agreement, within 10 days; and the administrator must also direct the landlord to pay the difference (if any) to the tenant, to be paid within 10 days.

 

 

Request by Tenant for Confirmation

 

Both in a custodial scheme and an insurance scheme, the scheme administrator is required to respond quickly to any request made by a tenant for confirmation that a deposit paid in connection with his tenancy is actually protected by the scheme.

 

A prudent tenant will always contact the scheme administrator to check this point, to ensure the landlord has not lied about having complied with the 2004 Act.

 

The administrator's name and address are part of the details contained in the prescribed notice (refered to above) which the landlord must give the tenant.

 

 

Specimen letter:

 

"Dear Sir,

I am a tenant of residential premises at (address), under a Shorthold tenancy.

On (date) I paid a rent deposit of £____ to the landlord, whose name is (name of landlord), and he has given me notice under the Housing Act 2004 that my deposit is protected by a Tenancy Deposit Scheme of which you are the administrator.

I request you to let me know within the next 10 days whether my rent deposit is protected by your scheme.

Yours faithfully,

Signed: (Name of tenant)"

 

Note: The tenant will send the above letter, duly completed with the actual details of the case, to the scheme administrator by 1st class post. It is prudent to date the letter, and to add the tenant's name in BLOCK CAPITALS. If handwritten, make sure it is legible!

 

 

Alternative Dispute Resolution

 

Every custodial scheme and every insurance scheme provides facilities for resolving disputes without recourse to the Court, though the use of those facilities is not compulsory.

 

For more information see this link: Resolving disputes: Tenancy deposit scheme : Directgov - Tenancy Deposit

 

 

Application to the Court

 

The tenant can make an application to the County Court if the landlord has not protected the deposit, on the grounds that —

• the statutory requirements have not been complied with; or

• the tenant has been notified by the landlord that a particular authorised scheme applies to the deposit, but has been unable to obtain confirmation from the scheme administrator that the deposit is being held in the scheme.

 

The statutory requirements will not have been complied with, for example, if:

• the landlord is not using an authorised scheme to safeguard the deposit; or

• the landlord has joined a scheme, but has not complied with the requirements of the scheme, so the deposit is therefore not protected by the scheme; or

• the landlord has failed to provide the tenant with the required information about the scheme and deposit, or has failed to do so within the first 14 days of the tenancy.

 

If the statutory requirements have not been complied with, the Court must:

• order the person who appears to it to be holding the money to either repay it to the tenant or pay it into an authorised deposit scheme, and that person must do so within 14 days; and

• order the landlord to pay the tenant three times the amount of the deposit, which must be paid within 14 days.

 

If the statutory requirements have not been complied with, the tenancy can't be terminated under section 21 of the Housing Act 1988 (giving of two months notice), only under section 8 of the 1988 Act (which requires the landlord to show good cause, e.g. rent arrears, disrepair, or breach of an express provision of the tenancy agreement).

 

The Court can also order any non-monetary deposit to be returned to the tenant by the person holding it, as it is unlawful to demand a non-monetary deposit.

 

A claim for three times the amount of the deposit (under section 214(4) of the 2004 Housing Act) might not succeed if the deposit has been protected or repaid before the court hearing takes place, even if it was not protected when the claim was begun. This is because the court can only make an award under section 214(4) if it has made an order for repayment or protection: the Act does not provide for it to make an award under section 214(4) where the deposit has already been refunded or protected (see http://resource.nusonline.co.uk/media/resource/enforcement_pack.pdf).

 

However, protecting the deposit after being sued will not save the landlord if the tenancy has ended; for in that case the court has power to make an order for the repayment of the deposit to the tenant, which will give it jurisdiction to make a penalty award under section 214(4). The landlord could only protect himself by making repayment of the deposit in full to the tenant, before the hearing date.

 

Before starting a Court claim, the tenant should read the thread at http://www.consumeractiongroup.co.uk/forum/residential-commercial-lettings/126261-tds-court-claims-wording.html and should decide whether to make the claim on form N208 or on form N1. Complete whichever is appropriate, then send a photocopy of the completed form to the landlord with a Letter Before Action: in the letter give him 14 days to pay up, and threaten to submit the form to the County Court on the 14th day if he doesn't. If he hasn't paid at the end of that time, send the claim to the Court. The Court fee for an N208 claim is £150, but the Court fee for an N1 claim depends on the amount being claimed.

 

 

Award to Tenant

 

Details of an actual decided case won by a tenant under section 213 of the Housing Act 2004 (on the tenant's claim for the landlord to pay a penalty of three times the amount of the deposit, for breaching the Tenancy Deposit Rules) is posted at: http://www.consumeractiongroup.co.uk/forum/residential-commercial-lettings/138758-tenancy-deposit-case-section.html

 

In awarding the money, the County Court judge accepted the tenant’s argument that the award was a strict liability penalty, and that consequently there was no scope for any counterclaim by the landlord for outstanding rent arrears or for the cost of damage or disrepair at the property.

 

This was Stankova v Glassonbury, decided on 10th March 2008 in Gloucester County Court (case number 8GL00457).

 

 

Further Information

 

For further information see this link:

 

Tenancy Deposit : Directgov

 

 

Note

 

This posting gives general guidance only. It is not an authoritative statement of the law. Consult a solicitor for specific advice before deciding on any course of action.

 

 

 

Advice & opinions on this forum are offered informally, without any assumption of liability. Use your own judgment. Seek advice of a qualified and insured professional if you have any doubts.

Edited by Ed999
Bringing this post up to date

Note

 

This is a self-help forum in which users share their experiences. Assistance is offered informally, without any assumption of liability. Use your own judgement; obtain advice from a qualified and insured professional if you have any doubts.

 

This posting gives general guidance only. It is not an authoritative statement of the law. Consult a Solicitor for specific advice before deciding on any course of action.

 

 

Further information:

 

Assured and Shorthold tenancies - A guide for tenants

 

Renting and Leasehold - Advice from Shelter

 

 

All posts are opinion only

 

 

If you've found my suggestions useful, please click on my star and add a comment

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You have posted;

 

"The Act requires the landlord to give the tenant a prescribed form of notice within 14 days from the beginning of the tenancy, containing the details of the particular tenancy deposit scheme by which the deposit is protected."

 

If you look at the act it actually says;

 

"Where a landlord receives a tenancy deposit in connection with a shorthold tenancy, the initial requirements of an authorised scheme must be complied with by the landlord in relation to the deposit within the period of 14 days beginning with the date on which it is received"

 

I hadnt noticed before but in light of the Please Help post be privatetenant today, it is particularlly relevant that its factual as under that scenario by taking the depsoit after the ast has began, the LL would be in breach according to what you have posted.

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Can someone please help - I have read lots but the Housing Act 2004 seems a bit ambiguous..

 

Our Agents were paid deposit over 50 days ago and it has not been put into a protection scheme. I have kicked up a fuss and the agents are saying they will now put it into one straight away.

 

Am I still entitled to pursue court action against the agent and specifically, will I still get the compensation of 3 times the amount even if the deposit has been protected by the time the case was heard in court?

 

What would the CC claim value be? The amount equal to 3 x the deposit? Only the deposit amount? Or the deposit amount + the compensation amount?

 

Do particulars of claim need to highlight in what ways the act has been breached and what sections of the act have been breached etc? Or would outlining our case in lay terms suffice?

 

Thanks for any insight..

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Hi ConfusedTenant,

I have put my claim in for the depost plus compensation amount, if the court finds that the agent has been non-compliant. I have provided 'evidence' to supplement my claim, copy of tenancy, copies of correspondence with the agent, Tenancy Deposit Scheme correspondence, all dated.

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Quick question, how do you find out who the Scheme Administrator is?

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Hi ConfusedTenant,

I have put my claim in for the depost plus compensation amount, if the court finds that the agent has been non-compliant. I have provided 'evidence' to supplement my claim, copy of tenancy, copies of correspondence with the agent, Tenancy Deposit Scheme correspondence, all dated.

 

Hi Grid66,

 

I am interested in what was the judgement on your claim, since there is few case information on the Scheme issue. If anybody knew such cases, please let me know through the forums.

 

I submit my claim recently, but they eventually repay full of the deposit. Still thinking whether I should continue the claim or not, because of the jeopardy for their legal costs, when I lost......

 

My case would be important because if they paid full refund during the 2 weeks, we would not claim the deposit itself but only for the 3 times fine. This claim would be no longer the primary purpose of the schemes for securing tenancy deposit.....

 

Also another possibility is all the ex-tenant who recently finish the tenancy brings claim, because of the 14 weeks rule, which will be a nightmare for landlords who did not realize the scheme in this Spring.

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Quick question, how do you find out who the Scheme Administrator is?

 

Cannot be easier. I finally made phone call to the all three scheme and found none of them has kept my deposit. You will be asked your name and address.

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For clarity and ease of use, I would like to suggest that we use this particular thread to post helpful tips, "lessons learned", interesting developments etc , rather then to request help and assistance.

 

Please start your own thread if you need advice.


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I have a specific question on the wording of the guidance in the first post above, in the section quoted below:

 

Application to the Court

The tenant can make an application to the County Court if the landlord has not protected the deposit, on the grounds that —

• the statutory requirements have not been complied with; or

• the tenant has been notified by the landlord that a particular authorised scheme applies to the deposit, but has been unable to obtain confirmation from the scheme administrator that the deposit is being held in the scheme.

 

How is such an application actually made?

- Does it need to be presented as part of a wider claim - eg for a deposit which has not been returned?

- Can it be made as a completely separate and independant claim?

- How is the claim notified to the Court? Through Money Claim Online?

- Is it indeed even a 'claim' - or rather a separate application?

 

All advice much appreciated. Thank you.

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Rather than create a discussion in a sticky, can you please create your own thread?


7 years in retail customer service

 

Expertise in letting and rental law for 6 years

 

By trade - I'm an IT engineer working in the housing sector.

 

Please note that any posts made by myself are for information only and should not and must not be taken as correct or factual. If in doubt, consult with a solicitor or other person of equal legal standing.

 

Please click the star if I have helped!!

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Where does the law stand for me, as i moved into my new rented house on the 7th of April?

 

I paid the first months rent and the deposit a few days before to let them clear my bank account and enter the agencies.

 

 

:?

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Tenancy Deposit Protection Scheme – Failure of Landlord to Comply

 

Commencing a County Court claim for compensation

The tenancy deposit protection scheme applies to all deposits paid on or after 6 April 2007, as provided for by Sections 213-215 of the Housing Act 2004.

 

This note does not cover circumstances in which the landlord has complied with the tenancy deposit protection scheme. If the landlord has complied and the tenant has a dispute about repayment of the deposit, the tenant should pursue the matter through the relevant tenancy deposit protection scheme’s arbitration service.

 

This note deals with the situation where it appears the landlord has not placed the deposit in an authorised scheme and/or has not provided the tenant with written information about the particular scheme that tenant’s deposit is held in.

 

 

What happens if the tenant renews their tenancy after 6 April 2007

If the tenant decides to remain in their existing rental property beyond the initial fixed term, how the deposit is treated depends on how the tenancy is continued.

 

Replacement tenancy – ie a new tenancy is created between the same landlord and tenant for the same property – any deposit previously paid will possibly now have to be protected as a new tenancy was created.

 

Periodic tenancy – ie the tenancy continues with no new agreement. Any deposit paid previously will probably not need to be protected because no new tenancy will have been created.

 

The law is not certain on these points, and it may have to take a court case for the matter to be decided. A tenant in this situation should seek specialist advice.

 

 

The obligations on the landlord are set out in S213.

There are two distinct elements to S213

 

1) The deposit must be protected in an authorised Tenancy Deposit Protection Scheme within 14 days of the deposit being paid to the landlord by the tenant.

 

2) The landlord must give the tenant written information about the particular scheme in which the deposit has been paid, within 14 days of the deposit being paid to the landlord by the tenant.

 

 

The compensation provisions are set out in S214.

 

The provision is that if the landlord does not comply with the requirements of S213 the tenant is entitled to compensation of three times the amount of her/his deposit.

 

This requirement is strict. If the judge finds that the landlord did not comply with S213 the judge must order compensation to be paid to the tenant. The judge has no discretion. Similarly, the judge has no discretion about the amount of compensation. If compensation must be paid, the judge must order that it be three times the deposit.

 

In addition to this compensation, the court must order either that the landlord repays the deposit, or that the deposit is protected in the Tenancy Deposit Protection Custodial Scheme within 14 days of the date of the court order. The judge has discretion to decide which of the two options to order but one or the other must be ordered.

 

 

What happens if the tenant has moved out of the property before the court hearing?

The law says that a tenant is entitled to claim compensation. It does not refer to a former tenant. There is an argument that if the tenant has moved out of the property so that they are no longer the tenant, they cannot claim compensation.

 

If the court claim was issued at the time the tenant was still occupying the property, then it is likely that the tenant will be entitled to claim compensation, as they were the tenant at the time the claim was issued.

 

If the court claim is issued after the tenant has moved out of the property, then it is possible that the former tenant will not be entitled to compensation, as they were not a tenant at the time the claim was issued. However, there is a counter argument that because the claim is all about the period when they were a tenant, that they will be entitled to claim compensation.

 

This is another area that is likely to take a court case to determine.

 

 

Current court decisions

There have been some recent county court decisions that have applied interpretations of Sections 213 and 214 that are not advantageous to tenants.

 

In one case it was held that even though the landlord had not provided the tenant with the information required by S213 within the 14 day time limit, the tenant was not entitled to any compensation because the landlord did eventually provide the information.

 

In other cases, judges have given conflicting decisions on the situation whereby the deposit was paid into a scheme, but was paid in after the 14 day time limit. In one such case the one judge did order compensation to be paid, and in another the judge refused to do so, saying late compliance was still compliance.

 

Because these were decisions of the county court they are not precedent, so they do not need to be followed by any other judge.

 

Until a precedent court makes a ruling, it would be still be reasonable for tenants to issue claims when the landlord has complied with the scheme but outside the 14 day time limit. However, the tenant should be advised that the law is currently uncertain and they may lose their case.

 

 

The claim form

The tenant will have to fill in the appropriate court claim form N208

Blank forms can be obtained from any County court, or from the Court Service website http://www.hmcourts-service.gov.uk/HMCSCourtFinder/FormFinder.doc

 

There are two types of court procedure under which claims of this type can be commenced, called the Part 7 procedure and the Part 8 procedure.

 

The Civil Procedure Rules at CPR 56.1 and Practice Direction 56 para 2.1 require tenancy protection deposit scheme claims to be made under Part 8 on Form N208 http://www.hmcourts-service.gov.uk/courtfinder/forms/n208a_0499.pdf

 

Court guidance provides more details on how tenancy deposit protection claims should be made. http://www.hmcourts-service.gov.uk/docs/infoabout/housing/section-214-application.pdf

 

Currently some county courts do not appear to realise that tenancy protection deposit scheme claims must be made under Part 8, and are requiring tenants to make them under Part 7.

 

A claim wrongly made under Part 7 will not be dismissed by the court. The judge will either treat the claim as if it was made under Part 8, or will let the claim continue under Part 7.

 

There are significant differences between Part 7 and Part 8 claims in relation to the costs the tenant may be liable to pay, and in procedure. A tenant may need to get further advice on this point if necessary.

 

 

The court fee

 

There is a court fee for issuing a court claim. The amount depends on the amount being claimed http://www.hmcourts-service.gov.uk/courtfinder/forms/ex50.pdf

 

If the tenant is on a low income they may be entitled to full fee remission, or a reduction in the fee. Form ex160A will need to be submitted to the court to apply for fee remission, together with the required proof of income as set out in the guidance notes attached to the form. http://www.hmcourts-service.gov.uk/courtfinder/forms/ex160a_e.pdf

 

 

Claiming interest

The tenant is entitled to interest on the compensation from the date the compensation was due. Compensation will be due from 15 days after the deposit was paid, as the landlord had 14 days to comply with S213.

 

The tenant will need to claim for interest on the claim form. If interest is not claimed it will normally not be awarded. The tenant will need to calculate how much interest the landlord owes and put the specific sum on the claim form.

 

Using the figures as an the example , interest was calculated as follows:-

 

Amount claimed £2000.

 

0.00022 x £2000 = 0.44p

So, the daily rate of interest is 44p.

 

The deposit was paid on 24 March 2008. The landlord should have protected the deposit within 14 days, so by 9 April 2008. Compensation is therefore due from 10 April 2008. The claim form was completed on 15 April 2009. 371 days have passed between 10 April 2008 and 15 April 2009.

 

371 x 0.44 = £163.24

 

£163.24 is added to the £2000 claimed making a total claimed of £2163.24.

 

The correct wording should be used as set out on the example claim form.

 

 

Witness Statements

The tenant is allowed to rely on evidence, such as the tenancy agreement or the receipt for the deposit. In a Part 8 claim any evidence must be attached to the claim form.

 

An important piece of evidence the tenant should always consider providing to the court is his or her witness statement. A witness statement is the statement of someone who wishes to give information about the background to the case, see example witness statement available on the NHAS site.

 

The tenant and the landlord can provide witness statements if they want to. If they feel that someone else can say something helpful on their behalf, that person can provide a witness statement.

 

It is usually a good idea for the tenant to file a witness statement. Although the tenant will have the opportunity to put their side of the story to the judge at the hearing, the tenant may find afterwards that they did not tell the judge everything they wanted to. The tenant may have been nervous, or felt a bit rushed, or simply forgot to say something. A witness statement gives the tenant the opportunity to set out exactly what they want to say to the judge, so that if they get nervous or flustered at the hearing it will not matter because the judge will have all of the relevant information.

 

The tenant can attach to the witness statement copies of any documents they want the judge to consider. Originals should be brought to the hearing.

 

 

What happens next

The claim form is served upon the landlord by the court. What happens next will depend on how the landlord chooses to respond to the claim, and how the claim is treated by the court. The tenant will be notified by the court of the next steps.

 

 

SUMMARY

The following must be filed at court to commence the claim

 

• Part 8 claim form

 

• Court fee, or fee remission application form and proof of income.

 

• Any evidence the tenant wants to rely on

Edited by Joa
New briefing

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This is a very recent advice sheet provided by NUS: http://resource.nusonline.co.uk/media/resource/enforcement_pack.pdf

I need to underline that currently (March 2008 ) we still have very little information about the way the courts are treating claims made under provision of TDS legislation- so tread carefully and share your experiences with us.


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This is a very recent advice sheet provided by NUS: http://resource.nusonline.co.uk/media/resource/enforcement_pack.pdf

I need to underline that currently (March 2008 ) we still have very little information about the way the courts are treating claims made under provision of TDS legislation- so tread carefully and share your experiences with us.

 

Just to add that the N1 approach advocated above has opened a whole can of worms in abitofapickles case on here, which a successful N208 wouldnt.

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Thanks for information of the PDF above. However I am very disappointed according to the Page 6, since it says:

 

Your claim for compensation may not succeed if the deposit has already been protected or repaid before the case is heard in court – even if it was not protected when you issued your claim. This is because the court can order repayment or protection, and then if it makes such an order it must also order compensation. The legislation does not provide for the court to make a compensation order if the deposit has already been refunded or protected.

 

After my claiming, eventually the deposit was fully repaid. My current status is before the hearing stage, hence it seems to be better to give up the x3 fine and forget my claiming costs, £100+25.

 

Are there any chance to get reimbursed the court fee because of they payed the amount?

 

It sounds really not fair as if a shoplifter put the item back and further no punishment!! They can repay the deposit back after receiving the N1.

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Another reason why I think the above link is not 100% useful at this stage

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I wouldn't go as far as dismissing the whole document as not useful; it does contain some good stuff. Tgk's comments on it in light of our current interpretation of the legislation; that the 14 days period is crucial and once crossed, there is no going back, the landlord cannot remedy things "later". But many landlords will and that's where the 3x fine would be still applicable.

 

But we really do not know what the judges are going to do with this quite harsh piece of regs. HA 214(4) does state (clearly, in my opinion) that the court must also order the landlord to pay to the applicant a sum of money equal to three times the amount of the deposit within the period of 14 days beginning with the date of the making of the order.

So once the deposit has been paid into TDS or repaid - the landlord still must be fined, if initial requirements have not been fulfilled.

 

I think there will be some time before judges are fully on the ball with the above.


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The harshness depends on perspective.

 

Such a fine for a failure to complete an administive task would be harsh but, arguably this legislation was introduced to stop what was a widespread problem. Massive abuse of tenants deposits. Indeed it was felt that some LLs regarded deposits as their bonuses.

 

The LL never owns the money so it should be passed on immediately. If you paid cash into a bank and they didn't credit your account immediately you would be outraged. In a way this is similar.

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It is not a fine. The money does not go to the Government but to the tenant, as compensation for the failure to properly protect his deposit.

 

The regulations say that the Court must award the penalty compensation to the tenant if the landlord did not protect the deposit within the appropriate 14 day period, and the regulations do not allow for the penalty to be evaded by repaying the deposit, so the right to compensation would appear to still survive in that event.

 

The application by the tenant will normally arise in existing proceedings, as it makes no sense for the tenant to antagonise the landlord by making such an application whilst the tenancy is still in being, given that a shorthold tenancy gives the tenant no real security.

 

 

 

Advice & opinions on this forum are offered informally, without any assumption of liability. Use your own judgment. Seek advice of a qualified and insured professional if you have any doubts.


Note

 

This is a self-help forum in which users share their experiences. Assistance is offered informally, without any assumption of liability. Use your own judgement; obtain advice from a qualified and insured professional if you have any doubts.

 

This posting gives general guidance only. It is not an authoritative statement of the law. Consult a Solicitor for specific advice before deciding on any course of action.

 

 

Further information:

 

Assured and Shorthold tenancies - A guide for tenants

 

Renting and Leasehold - Advice from Shelter

 

 

All posts are opinion only

 

 

If you've found my suggestions useful, please click on my star and add a comment

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I am currently a matter of days away from receiving my £3k penalty from my previous rogue landlord, following a General Directions Order from the District Judge, via Money Claim Online. :)

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Mr Pipps,

 

I'm confused because in your previous thread you said your deposit was definitely protected. Is this message in the right thread?

 

http://www.consumeractiongroup.co.uk/forum/residential-commercial-lettings/131060-iminent-repossession-rented-property.html

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Good spot! :)

 

I am refering to a different property in that thread. That is my current rental property, which is being repossessed.

 

The TDS penalty is in respect of the property which I rented prior to that.

 

I've been having fun recently! ;)

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Guys, could we just post definite news, tips and experiences of TDS here, please? Otherwise thread becomes difficult to manage. Many thanks!


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Ladies and gents, we have a decision!

TENANCY DEPOSIT CASE (S213 HA 2004)

 

 

Stankova v. Glassonbury 10th March 2008, Gloucester County Court

 

 

 

The claimant Ms Stankova is from Bulgaria and took a private tenancy with Mr Glassonbury on 1.8.07. She was a joint tenant with her daughter and another tenant (unknown to her before start of tenancy).

 

 

 

The tenants jointly paid a deposit of £600 in order to move in. The landlord did not notify any of the tenants that he had deposited the money in any of the statutory Schemes at any time.

 

 

 

There were various problems with the landlord and he served notice on 2.10.07. The notice was defective. The third tenant moved out of property shortly afterwards and the three tenants made arrangements about how the deposit would be dealt with on its return.

 

 

 

On 28.10.07 the landlord entered the property and removed a carpet and the fireplace from the lounge making it unusable and also pulled the extractor fan out of kitchen leaving a hole in roof. The Council dealt with the harassment. The landlord promptly served a further notice November 2007 under s21 which was on the face of it a valid notice.

 

 

 

Ms Stankova moved out in Feb 2008. She made a claim under the Housing Act 2004 against the landlord for his failure to notify her within 14 days of how he would deal with the deposit and which scheme he was using.

 

 

 

The landlord submitted various arguments against the claim; that the tenant owed some rent arrears, that he had now placed the deposit in a scheme and that there was damage at the property for which he would wish to withhold some or all of the deposit.

 

 

 

At the hearing of the matter District Judge Singleton ordered the landlord to pay £1800 +£75 costs in respect of three times the deposit plus the court fee.

 

 

 

In awarding the monies, the judge accepted the tenant’s argument that the award was a strict liability penalty, and that consequently there was no provision for counterclaim for outstanding rent arrears or other arguments about the return or retention of the deposit on the basis that a statutory scheme included arbitration for disputed about returning or retaining deposit monies.

 

 

 

Comment: In giving his decision the judge expressed concern that ‘it goes against the grain’ and advised the landlord to take legal advice as to whether he could delay the 14 days in which he must pay the claimant.

 

With thanks to Gloucestershire HAC

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This is very reassuring. Do you know if/how to get a copy of the judgement.

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