deposit dilemma

[dlou]

Not sure if anyone can help with this one but heres hoping. My son recently terminated a joint tenancy with a now ex-friend and duly awaited his share of the refundable deposit. On 8th August he spoke to the letting agency stating that the deposit should be repaid in an equal hlf share to each his and his co-tenants separate bank accounts. They were not a couple and all rent bills etc were paid in equal half shares from their separate accounts as the original deposit had been. Needless to say the co-tenant contacted the agency subsequent to my son and instructed them to repay the entire deposit to his account which the agency did. They made no attempt to contact my son who only found out when he again phoned the agents to chase up the deposit. Despite his horror at what they had done (which I think was tantamount to collusion in fraud/theft whatever) their response was that they did not need his authorisation to repay to one account. I maintain that given my son had given his instruction to the agents before his flatmate saw fit to effectively steal from my son that they-the agents- have a moral duty to recompense my son and pursue the other tenant for the balance. The ex flatmate is of course refusing to cough up my son's share despite also leaving my son with the lions share of remaining bills and council tax to settle. By the way have reviewed the tenancy agreement which is ambiguous at best and the deposit protection scheme seems only to cover certain types of dispute can any one help - please..

[Caspar]

Re: deposit dilemma

If everything was shared, sadly they will be jointly and severally liable for any outstanding debts on the property and both parties will be pursued.

As regards the deposit, your best remedy may be to the small claims court in order to get your son's share of the deposit returned.

[dlou]

Re: deposit dilemma

I had suspected as much insofar as the bills, council tax etc. were concerned, but thank you. My concern is that when my son had given a specific unequivocal instruction to the agents as to how they should repay the deposit, why did they ignore this and follow a subsequent request to do otherwise without at least checking with my son? Surely there is something to answer here on their part, and why does the law always seem to favour the dishonest, the careless and greedy- by use of such phrases as 'any, jointly, severally and all? I am seriously fed up, why is it that people who trust are always the losers. I know the option of small claims is there but what about the cost involved?

[labman]

Re: deposit dilemma

In this case I think what is probably more important is whether the other person would actually pay even if the judgment went your way. The judge cannot force the other person to pay, so you may end up throwing good money after bad trying to enforce the original judgment.

I totally agree that those who try to do things right are often the ones who seem to lose out.

Was there nothing at all in the tenancy contract about the deposit? Do you have a copy of the letter your son sent to them?

I'm thinking down the line of going after the letting agency who could ill afford to have a CCJ against their name. You are entitled to SAR them to get all information held about the agreement and payments made with regard to it. This information should include a copy of your son's clear instruction. It might be worth checking with someone that the letter your son sent is legally binding, as sadly if it isn't, there seems little you can do.

I hope someone with more knowledge of this area than me comes along for you.

[Celestine]

Re: deposit dilemma

I would issue a court claim against the co-tenant and the letting agent.

Yes, the judge can't actually force the debtor to pay up there and then, but you can enforce a judgement using court bailiffs (at a cost) which usually sharpens the focus of the debtor. Like Caspar said, the letting agent would be reluctant to incur a CCJ, so issuing against both would be a belt and braces approach.

[dlou]

Re: deposit dilemma

Thank you both for your replies. I am grateful, but both my son's instruction and the co-tenants were verbal i.e. over the 'phone except that my son visited the agent in person to reiterate his claim the day after his phone call and was assured that there would be no problem???? Moreover, shouldn't the agent have offered him the opportunity to put things in writing? After all isn't there a provision in law which prohibits the use of superior knowledge as advantage for gain? Could I use this argument? Incidentally when my son spoke to the agents after discovering their mismanagement they (the agents) apologised and actually said that if he could recover the money from his co-tenant it would save everyone a lot of trouble - is this not significant?

[labman]

Re: deposit dilemma

When the tenancy agreement was first taken out, was the deposit paid jointly, or did each pay half and get receipts for each half. I'm just wondering, as deposits have to be placed in a holding account, if there's any mileage or not in trying to claim that your son's half should have been placed separately from the other tenant's half.

[dlou]

Re: deposit dilemma

Thank you for this, the deposit was paid as bank transfers - an equal half from their individual accounts - as to receipts I assume acceptance of the transfers suffices? Do you think I would get any joy from a suggestion that I place the agent's name on various ' bad landlords' type websites - going to the local press etc. It would all be truth no defamation or libel could be claimed.

[Caspar]

Re: deposit dilemma

I can't help thinking that this is a joint tenancy agreement, deposits were paid from separate bank accounts, rent may have been paid from separate accounts? There seems little doubt to me that when the deposit was returned it should have been returned 50% to one and 50% to the other. Whether a court would see it this way I don't know, but it must be worth a free consultation with a solicitor. Bearing in mind though that winning is one thing and getting the money back is another.

[dlou]

Re: deposit dilemma

I have since discovered that the deposit was repaid to a third party i.e. someone my son's co tenant nominated, and - believe it or not - owed money to ( the co-tenant's boss, no less)!!!! And yes the rent was also paid in half shares from their individual accounts. I would hope that a judge would review the matter entirely fairly - because if so how could one fail to find in favour of someone who had behaved honestly.... instead of someone who has behaved so despicably????

[calamity jane]

Re: deposit dilemma

Not sure if this is any help but found this on one of the deposit scheme websites.

"However, if you do wish to register several tenants against one tenancy then one deposit submission can be made and, in this instance, a lead tenant needs to be selected. It is a DPS requirement that the agent/landlord and tenants agree on who will act as the lead tenant so that The DPS can address any correspondence to them. It is important that when completing the repayment process, the agent/landlord and lead tenant agree the split of the deposit amount, and the lead tenant must also ensure that any proportion of the deposit that is to be returned to the tenants is divided fairly."

Do you know if it was your son or his co-tenant nominated lead tenant ? If it was your son he could have some redress against the letting agent.

CJ

[pos]

Re: deposit dilemma

Try The link below

www.tds.gb.com (Tenancy Deposit Scheme)

You might be able to find something in the 'case studies' that are on the site.

Or you could e-mail them to ask either for help with your situation.

Even if they can't help they may well know who may be able to help you. Good Luck

Pos

[SpringerSpaniel]

Re: deposit dilemma

If the deposit was - as it should be - in a deposit protection scheme , the scheme should have a mediation facility, which could be used.

In addition to thee other remedies suggested, your son could also i) complain to Trading Standards about the letting agency; and ii) if they are a member of any professional association eg of estate agents or surveyors, make a complaint through this.

If issuing proceedings against the co-tenant, sue the recipient of the funds as a second defendant.