seeking help for a rare case in small claim

[islandgirl]

Agreed but the tenancy did not commence (no signed contract or move in) so in my view there was no need to protect only return, which they have not done. You are far more experienced than I Atticus so may well be correct but I do not see the duty to protect when a tenancy does not exist and never has (and was never intended to)

[atticus]

A lot turns on the meaning of "in connection with".

[helpscan333]

Thank you all. So at least one thing is sure: they need to return the deposit no matter whether it is being protected ?
I need to fill out the N1 form, but I am not sure whether I could claim for compensation for the unprotected deposit?

[helpscan333]

If the contract states it is a deposit, it is a deposit.
Have you decided whether to include your PoC (2 copies) with the claim form or send it to the defendant later (and at the same time file a copy with the court)?
The claim form should be posted (first class with receipt as proof of postage) to the Money Claims Business Centre at Northampton

I have sent the LL a letter before claim, but no reply.
So what I need to do, is to fill the form, then sent it to the court and LL in the next step? Is it a correct step? I am quitely confused about it.

[R0b]

Sorry to chime in here but I only just came across this thread and I wanted to point out that what has been said so far, you cannot use the county court to bring a claim. The correct procedure is the First Tier Tribunal.

My initial observations are that the issue falls under the Tenant Fees Act 2019 because it is a payment in connection with a tenancy agreement. The TFA allows certain permitted payments but any payments outside of those permitted ones will be deemed a breach by the letting agent or the landlord (they are known as a prohibited payment). I would suggest the OP take a look at the TFA guidance issued by the Government (link here) as the matter can be quite complicated and may require a few times to read it fully, but briefly:

1. Since you did not receive the contract until after the £600 deposit was made, this sounds like it is a holding deposit under the TFA.

2. A holding deposit under the TFA is intended to reserve the property and limited to 1 week's rent. OP has said the £600 is one month's rent. Therefore this is a breach of the TFA and deemed a prohibited payment.

3. When you make a holding deposit, there are timelines to enter into a tenancy agreement within 15 days of receiving the deposit unless otherwise agreed in writing with the landlord.

4. If no agreement is entered into, the landlord/letting agent must return the holding deposit within 7 days unless (amongst other things), the prospective tenant withdraws from the agreement. Based on the information provided so far, I would say the OP has withdrawn from the tenancy agreement.

5. The obligation to repay the holding deposit does not apply if the prospective tenant withdraws only if (i) the landlord/letting agent has not breached any prohibitions or (ii) behaved in a manner that would make it unreasonable for the tenant to enter into the tenancy agreement. In the OP's case, the letting agent appears to have asked for a prohibited payment by taking 1 month's rent instead of 1 week as a holding deposit. Equally, the OP could argue that the failure by the letting agent to inform the OP about the upfront payment for the whole tenancy was unreasonable and not something the OP could have reasonably expected to sign without being informed in advance of any holding deposit since it was a material term of the tenancy. If the letting agent failed to provide that basic information, there may be suggestion the OP was lured into a false understanding and the letting agent may have knowingly did this in order to keep the holding deposit.

6. Options for the OP? Report the matter to their local trading standards, they can prosecute and fine the landlord/letting agent. OP may try to use that as leverage to the letting agent as a means to return the holding deposit. Alternatively, a claim should be issued in the First Tier Tribunal and if successful, the FTT is able to order the letting agent/landlord to repay that amount within 7-14 days the day after the order is made.