Tenancy Deposit Protection questions

[SR9876]

Hi All I lived in a 2 bed flat for 22 months. I paid a deposit at the start of the tenancy into my LL's bank account. My LL did not protect my deposit at the start of the tenancy. At that time I was not aware of the legal obligation that all LLs need to submit the deposit into a government approved scheme. To top it, there was not check-in inventory done at that time. After I left the flat, my LL did not return the deposit nor did he give me a picture of what he was repairing in the flat until 2 months had passed. At the end of two months, he said I had done substantial damage and his repair bill was more than my deposit. Additionally, he asked me to pay two months rent as it took him that much time to get the repairs done. Even at this stage, he did not send me anything in writing such as repair bills etc., and threatened that he will go to small claims court to get the amount. My question is if I go to court, will the court order him to pay 3 times the deposit? Is there anything I stand to lose in this case?

[ChrisTDS]

By not protecting the deposit within 30 days of receiving the money your landlord has failed to comply with the Housing Act. The 30 day limit is absolute and as a consequence a court should order the landlord to repay the deposit in full and compensation of between one and three times its value.

 

The deposit money belongs to you, even when held by the landlord. He can only withhold money with your agreement, or when instructed by a court or a tenancy deposit scheme (not applicable in this case because your money has not been protected with a scheme).

 

Based on the information you have given it is difficult to see why you would not be awarded the deposit plus compensation. However please seek legal advice to go through your situation in detail and confirm what you should do, you may want to start by going to your local Citizens Advice.

[SR9876]

Many Thanks for the reply ChrisTDS! Very helpful!

[mariner51]

Be pro-active. Write letter to LL, headed 'Letter before Action', requesting return of your full deposit (£x) within 14 days to avoid possible legal action. Send by First Class snail mail to the address for Service of Notices in AST and get free Cert of Posting from PO counter.

After 14-21 days submit a SCC claim for return of deposit.

LL will have to justify any proposed deductions in Court, bit difficult if no detailed move-in inventory compiled at T start time.

 

 

There is some debate whether a non-deposit collection claim can be brought via SCC or whether it requires CC mult-track route.

It may depend on Judge's discretion.

Multi-track requires up front payment of £1K+ Court fees (recoverable if you win) and exposes applicant to unlimited defendant's legal costs if you lose.

The size of penalty awarded is also at the Judge's discretion (1-3x deposit).

SCC costs (payable when lodging claim) are dependant on amount claimed, payable by the loser.

 

 

Either way, the LBA may persuade LL to return full deposit without deductions.

[Beatrice Bee]

These days they have to protect the deposit within 14 days of receiving it.

 

Yes, you will be awarded 1-3 times the deposit paid. However, there is no guarantee that he will ever pay you a penny so you end up throwing good money after bad money.

 

Tenants given a Section 8 notice for rent arrears and repossession can use a counter claim for non protection of deposit to wipe out some of the arrears and to significantly slow down the claim.

[mariner51]

"These days they have to protect the deposit within 14 days of receiving it."

 

 

replaced by Localism Act 2012, now 30 days from date of receipt.

[Beatrice Bee]

ok, thanks. What was wrong with the 14 days as introduced by the Localism Act 2011, was it.

[mariner51]

The 14 day rules was pre-localism Act. 30 day rule was introduced in LA to give more time for postal deposits and provision of resultant PI

Late protection is now no longer possible for valid service of s21, only return of full depositpre s21.

[SR9876]

I wrote to my LL. He has gone to some solicitor who has replied. First of all he has admitted in writing that he has broken the law. However, he said that there is no guarantee that the court will order him to pay 3x the deposit. In addition he has scanned 3 bills - one a drycleaner bill that has no name of the drycleaning company - seems like a paper torn off from a note book. The second one is a bill from a builder who is 150 miles away from property. It has items handwritten such as "removed door, put it back £100" - no reason why the door was removed, no itemised list of parts he bought. And the 3rd one is an invioice for 2 months rent. funnily enough the date of the invoice is after he got my LBA. At the end of the letter his offer is to offset £3k from the amount he is claiming and says I need to pay the rest. As there is no check in inventory, he did not protect the deposit and spent the money on his free will to upgrade his flat, I think he does not have any leg to stand on whatsoever and I am thinking of going to a solicitor. Please advise.

[mariner51]

Proceed with SCC claim for return of full deposit.