pandoralcy Posted January 17, 2010 Report Share Posted January 17, 2010 1. Informed T to that his deposit was going to be kept with DPS. 2. Didn't reply in writing but kept verbally insisting that he did not want his money in DPS. 3. Last day of tenancy was 23rd, which was the same day he applied for claim of his deposit plus 3 times for not protecting his deposit. End story, we never did put his deposit in the DPS only because he insisted and now he's thrown us a whammy! He also says that he has evidence of documents, copies and photographs??!! Any thoughts please? HELP! Thank you Link to comment Share on other sites More sharing options...
Melboy Posted January 17, 2010 Report Share Posted January 17, 2010 Unfortunately it is the law for the Tenant deposit to be placed in the DPS. Your Tenant has been allowed to take over your decision making which should never be permitted under any circumstances for Landlord's. Your Tenant is obviously tring it on as well. It is not for him to claim 3 times the deposit but a court of law so tell him/them to go and get stuffed. Tell your Tenant to forward all copies of his written evidence to your Solicitor in order that your Solicitor may prepare for any likely court action that may be arise. Tell your Tenant you will fight any claim that may be made against you by him/her and that you will require the name of their Solicitor. In other words go on the defensive......... Mel. Link to comment Share on other sites More sharing options...
pandoralcy Posted January 17, 2010 Author Report Share Posted January 17, 2010 Hi Melboy Thanks for that. I forgot to mention that I already received a served notice from small claims court claiming original deposit plus 3x. On that same day, the cheque which i refunded his deposit was also cleared. Does that help the situation? Link to comment Share on other sites More sharing options...
Trenners Posted January 17, 2010 Report Share Posted January 17, 2010 Hi, I would not be threatened by the small claims court notice. If you fail to protect a tenant's deposit (which you did) then the court can order you to pay the tenant 3 x deposit as compensation and will also insist that you protect the deposit. I don't think the documents that have been served on you (from the small claims court) relate to the above process (but you should consult your solicitor to make sure). It seems that your ex-tenant has decided to sue you in the small claims court for 3 x deposit plus the original deposit monies. This is very different to being ordered, by a court, to pay your tenant compensation and protect the deposit (as above). If I am correct then you should file a defence to the small claims court claim (there should be a form or an on-line process to file a defence) stating that the deposit has been returned, in full, to the tenant and no further monies are owed. Do not ignore the small claims court papers as, in the absence of you filing a defence, they will award the claim against you. ie: remaining silent will be viewed as an admission of guilt. Hope this helps .... Mark Link to comment Share on other sites More sharing options...
pandoralcy Posted January 17, 2010 Author Report Share Posted January 17, 2010 I have actually replied that I acknowledge receipt of the claims notice. And also, in his Particulars of Claim, I quote: "Particulars of claim to follow including documents, copies, and photographs if necessary. Email exchanges printed and available" So right now, I'm not suppose to do anything until I receive the so-call particulars of claim. Link to comment Share on other sites More sharing options...
SPEEDTWIN Posted January 18, 2010 Report Share Posted January 18, 2010 The small claims route is the incorrect way to do it now see so you could try to get it struck out that way. Look at http://www.hmcourts-service.gov.uk/docs/in...application.pdf Link to comment Share on other sites More sharing options...
Lyndon Posted January 21, 2010 Report Share Posted January 21, 2010 Firstly you should have decided which scheme to use. It is your choice whether to use DPS or MyDeposits. That said you MUST protect the deposit and provide the tenant with the proscribed information within 14 days of receipt of the deposit. It appears that the tenancy has now ended so the court cannot and therefore will not, order you to protect it. However they may decide that you did not protect it as required by law, in which case they must order you to pay the tenant three times the deposit. Good luck! Link to comment Share on other sites More sharing options...
snorkerz Posted January 21, 2010 Report Share Posted January 21, 2010 Firstly you should have decided which scheme to use. It is your choice whether to use DPS or MyDeposits. That said you MUST protect the deposit and provide the tenant with the proscribed information within 14 days of receipt of the deposit. It appears that the tenancy has now ended so the court cannot and therefore will not, order you to protect it. However they may decide that you did not protect it as required by law, in which case they must order you to pay the tenant three times the deposit. Good luck! I have yet to hear of a successful 3x claim where the deposit has been returned. However this user (from the Ad in his sig) seems to be a letting agent so may be able to provide examples. Link to comment Share on other sites More sharing options...
Melboy Posted January 22, 2010 Report Share Posted January 22, 2010 Gloucestershire Court last year....Landlord was fined £1800 for not depositing the tenant's deposit Fyldeboy. Mel. Link to comment Share on other sites More sharing options...
SPEEDTWIN Posted January 24, 2010 Report Share Posted January 24, 2010 Mel do you have any more details or a link for that court case. Link to comment Share on other sites More sharing options...
Melboy Posted January 25, 2010 Report Share Posted January 25, 2010 I think I Link to comment Share on other sites More sharing options...
Melboy Posted January 25, 2010 Report Share Posted January 25, 2010 I think I have already put these details up before on the forum but I will try and find the news article again for you. Mel. EDIT Stankova v. Glastonbury 10th March 2008, Gloucester 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 any other arguments about the return or retention of the deposit. This was 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. Link to comment Share on other sites More sharing options...
SPEEDTWIN Posted January 26, 2010 Report Share Posted January 26, 2010 Thanks for that. I guess it was done through the small claims route and not the part 8 as required now? Link to comment Share on other sites More sharing options...
Lyndon Posted January 27, 2010 Report Share Posted January 27, 2010 QUOTE (Lyndon @ Jan 21 2010, 06:06 PM) Firstly you should have decided which scheme to use. It is your choice whether to use DPS or MyDeposits. That said you MUST protect the deposit and provide the tenant with the proscribed information within 14 days of receipt of the deposit. It appears that the tenancy has now ended so the court cannot and therefore will not, order you to protect it. However they may decide that you did not protect it as required by law, in which case they must order you to pay the tenant three times the deposit. Good luck! I have yet to hear of a successful 3x claim where the deposit has been returned. However this user (from the Ad in his sig) seems to be a letting agent so may be able to provide examples. I am indeed an agent and a landlord. I am also aware of one case where I have given unoffical guidance to the tenant - the landlord is not one of the best! However that case may also be going to appeal so I'd rather not give details for obvious reasons. There have also been a number of cases highlighted in various trade articles. As an agent and as a landlord I feel that the system is now skewed too much in favour of the tenant. Even where a deposit has been protected correctly, it is all too easy for tenants to challenge ANY deductions since they are able to do so at no financial risk to themselves! Link to comment Share on other sites More sharing options...
Syed.Hussain Posted February 12, 2010 Report Share Posted February 12, 2010 Hi I am a landlord and unfortunately did not protect my tenants deposit. I have had issues regards damp for which the tenant has got the council to serve a notice. I was previously and still am working to get some works done which the council want me to do, even though the three condensation reports I had done all state that the tenants lifestyle has a lot to do with the problem. Nevertheless, I have nearly spent £1000 in making updates, only for the tenant to have given me a months notice as she is now on a rolling monthly notice period. Having been asked by the tenant to discharge her earlier than the one month, I agreed and also have agreed and have the deposit money to return on her last day. The tenant has now found out that I did not protect her deposit and I honestly believe out of spite, has advised that she will be pursuing me for the penalty of an additional 2x her deposit. Although, I feel and as do my property management agents, that I have done everything in my power to resolve the condensation issue (having also bought her a de-humidifier earlier in the year), and that the tenant has not heated or ventilated the property adequately, she is using (or should I say, abusing) the 'deposit protection' law to claim more monies from me, when I could quite reasonably justify that I have incurred a lot of expense due to her lifestyle. I understand that not having protected the deposit money, I have little ground to argue, but ultimately, I now want to know how I can either persuade the court that she is abusing the system, or how I can try and make it as difficult as possible for her to pursue me for the penatly. All comments and advice would be appreciated. Link to comment Share on other sites More sharing options...
Syed.Hussain Posted February 12, 2010 Report Share Posted February 12, 2010 Does anyone know what rate of interest the deposit schemes pay? I understand that the benefit of the deposit scheme to the tenant is that they earn interest on their deposit money whilst it is being held or 'protected'. I wonder if the landlord were to return thr deposit money plus any interest (calculated at the stated rate), whether the tenant could still pursue to claim the additional penalty? Anyone, please help! Link to comment Share on other sites More sharing options...
Syed.Hussain Posted February 12, 2010 Report Share Posted February 12, 2010 The below may be of interest to landlords being targeted by dodgy tenants! 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/medi...ement_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. Link to comment Share on other sites More sharing options...
Chestnut Posted February 12, 2010 Report Share Posted February 12, 2010 The Deposit Protection Service uses any interest it earns to help pay for administrating the scheme, which is free to the user. See description on DPS website. No interest is repaid to tenant or landlord. Link to comment Share on other sites More sharing options...
Syed.Hussain Posted February 12, 2010 Report Share Posted February 12, 2010 Thanks Chestnut. Link to comment Share on other sites More sharing options...
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