Tenancy Deposit not protected at my last rental

[havana]

Hi hopefully as many people can give me advice on this as it is now complicated! I rented privately in feb this year and paid deposit to letting agency (LA) but property managed by LL. The LL served me section 21 in June as I lost my job and got behind a little with rent. When she saw me few days previous she said I need to find out where your deposit is and it emerged it was not held in a government scheme.
As the LL said I could move out earlier if I found somewhere by mid july I did find somewhere and arranged to move 3 weeks before the AST term ended which was fine with her. The check out was conducted by the LA and all was fine but when it came to getting the deposit back from the LA he gave us both a cheque for the deposit back which subsequently bounced. Mine eventually cleared but the LLs didn't which was for the rent arrears owed. I have wasted so much time on this and now want to sue for 3x for not protecting my deposit. But who should i sue? The LA for issuing a false document (HE PRETENDED IT WAS IN AN INSURED SCHEME) or the LL? If I go for the LA I am thinking my deposit was held in an account that is in a company Voluntary Arrangement and is now in liquidation from what I can gather so will have more legal costs (I am still unemployed as all this moving/worry about eviction has prevented me from concentrating on job searches). or go for the LL Who has informed me she can sue me for owing rent still? Or do I demand the LA to repay me the rest of the deposit and still fight for the compensation. Any advice please? ?

[jr9355]

Re: Tenancy Deposit not protected at my last rental

Who was named on your tenancy agreement?

Also, your post is confusing. You state that your cheque eventually cleared but the Landlord's did not? I'm not entirely sure what this means. Why are you interested in the landlord's payment bouncing? You received your deposit back, no?

I think you need to clarify your post.

Mine eventually cleared but the LLs didn't which was for the rent arrears owed
Does this mean that the cheque issued to you has cleared? And the Landlord was issued a cheque which did not clear?

[havana]

Re: Tenancy Deposit not protected at my last rental

Hi the landlady was named on the tenancy and the cheques which were represented was split. mine for the rest of the deposit back and hers was for the arrears which we had agreed on. Can I add there has been some dispute between LA and LL as the house was also on for sale too. From what I gather the house is no longer for sale with that LA so I think her ccheque bouncing was done on purpose. The LA unbeknown to me is one ofthe worst in this town and obviously do this alot I.e not protecting deposits. Using a TDS logo on their profile page. Not showing fees. Opening closing estate agents after dissolving company. The cheques issued were in a different name which appears to be the company now ina Voluntary Arrangement and I believe also in liquidation since. So as you can see I am getting totally confused as to which way to go on this especially since the LL now wants me to pay the arrears because her cheque bounced! Any help much appreciated.

[jr9355]

Re: Tenancy Deposit not protected at my last rental

It sounds to me like the landlord is trying to chase you for arrears because her cheque bounced - but it doesn't answer the question as to the arrears and you having left the property with outstanding rent due.

The letting agent paid your deposit back to you but there is a portion outstanding due to the landlord? If so, this seems not to be your problem at all and the landlord's cheque bouncing is not your problem.

Can you break down what was paid through the duration of the tenancy, what was repaid to you and what is outstanding to the landlord? All of the narrative about the house being for sale, the lack of deposit scheme etc is not terribly important to you. The only issue concerning you is how much you have paid towards the rent and what remains unpaid. I'm still not entirely clear as to why there was a payment issued to you and the landlord separately.

[havana]

Re: Tenancy Deposit not protected at my last rental

Hi during the tenancy I paid rent to the LL and the deposit was held by the LA. Through the tenancy I got behind in May but paid in June double less £100. In July I left on the 31st (3weeks before end of agreement with her blessing mind) so owed the outstanding rent for about 8 days plus the 100. The LL was supposedly getting her part from the deposit(which I now know for definite was not held in a government scheme) hence why the cheques from the LA were issued to both of us. Is that me who is liable or the LA? I am seriously thinking about claiming compensation but from whom I am unsure due to this happening. It appears the LA are in serious breach of their letting service not registering my deposit at all as it should be held in a segregated account and not used to support his business. Why else would the cheques bounce if he is not supposed to use my money?
Thanks

[Kati]

Re: Tenancy Deposit not protected at my last rental

If you got your deposit back minus the rent owed to the landlord (which was paid to the LL by cheque from the LA) and it was the LL's cheque that bounced then I'd think that the LA owed the LL not you.

I cannot see why you want compensation now tho' ... you got your deposit back :noidea:

[havana]

Re: Tenancy Deposit not protected at my last rental

The law says the tenancy deposit has to be protected and mine was not! The section 21 was served on me although not valid on advice to the LL from the LA. I was not in a position to move so quickly and the LA have acted wrongly. I think they should not be allowed to treatpeople that way.I only got my deposit back in the end because their accountants advised him to. I have spent the last few months with the worry of eviction,moving when I could not afford to, fighting to get deposit back etc. They led me to believe everything was kosher when it was not at all. Surely their actions are illegal? Company profile is misleading too. The LA did not protect my deposit after all.Can I not claim compensation because I had my deposit back in the end?

[Kati]

Re: Tenancy Deposit not protected at my last rental

I'm not saying you can't ... just that I don't understand why you would

Maybe [MENTION=15129]Crazy council[/MENTION] will have an idea what you need to do?

[jr9355]

Re: Tenancy Deposit not protected at my last rental

Technically speaking, if they did not use a protected scheme then they are indeed in breach. However they are using a company which is in iva. You wouldn't be likely to see anything back.

I would consider yourself lucky you got your deposit back and draw a line under it.

[havana]

Re: Tenancy Deposit not protected at my last rental

So should I request compensation from the LL as she was aware the deposit was not protected yet still served me section 21. This has been nothing but an inconvenience and worry from start to finish! I am very annoyed with how both have acted hence me having to move out. I do think that they should be liable for not doing as the law requires though. The LA does alot of student rentals and how many have/will be duped. Surely they cannot keep getting away with it. Are they allowed by law to use an account that has a CVA on it as my understanding is that account should be frozen and my money was paid into/and eventually out of it?

[dan_1207]

Re: Tenancy Deposit not protected at my last rental

You can sue either, provided (i) you paid your deposit to the LA, and (ii) they were responsible for registering it. Be safe and sue the LL.

You're likely to get only 1x month's rent back, 3x rent is for serious, intentional avoidance of the law re: protection.

[havana]

Re: Tenancy Deposit not protected at my last rental

But surely it was serious prevention as LA alleged it was in a scheme when basically the certification given to me said it had been protected. The certificate says it was in an Estate Agents Backed Scheme and protected by them! This is all rubbish as far as I know. How can they have their own scheme? The tenancy agreement says the name of the protected deposit as "the deposit". Surely that is serious, and intentionally avoiding the law. I really feel that they are liars and should be punished but am aware they may be in a CVA (the actual account the money was paid in/out of) and liquidation ongoing but will stay open by using another business account for the same company. They are a member of the TPO though so surely insured themselves. Do LAs have 2 company accounts? IF I claim from him would there be any chance at all of claiming compensation x3? He is definitely in breach of not protecting my deposit that I do know.

[havana]

Re: Tenancy Deposit not protected at my last rental

Also can I put both LL AND LA on my claim? Do I send notice first to both??

[dan_1207]

Re: Tenancy Deposit not protected at my last rental

You would need to decide whom should be the Defendant, and send a protocol-compliant letter before claim.

I would choose the LL if it were me, given the state of the LA.

Claim for 3x (obviously), but it's the judges discretion.

See: Khuja v. Chowdhury [2015] EW Misc B18 (CC), and Okadigbo & Anor v Chan & Anor [2014] EWHC 4729 (QB). There is not much case law as (a) it's often settled (in my experience), or (b) they're county court decisions, so not published or binding.

[havana]

Re: Tenancy Deposit not protected at my last rental

If I claim from the LL I know she will defend it as she is the type to. When I asked if she gave the LA authorisation to hold the deposit initially, she replied it was nothing to do with her! But as she is in dispute with the LA Ithink she is obviously trying to get me to sue/claim from them. In all honesty I feel they are both liable. Yes I understand the LA are wrong too and at the end of the day she has already got a case open with the TPO about them so could easily put in the complaint about how they have breached the TDS aswell! Could i still claim from LL and also complain to the TPO about the LA. Thanks for the advice.