DPS deposit scheme how are they going to survive ?

[Sportingdad]

DPS, the ones that hold the money-that I do not use, how are they going to make a profit ?

I believe their business model was set up when commercial interest rates on deposits was 5% and they were also going to use the money on the overnight currency market but now things have gone T**s up and that the level of disputes are rising amongst all the deposit schemes (as they always will, on the basis of the more that tenants find out that there's absolutly nothing to lose by shoving in a claim) how are they going to survive with the rise of admin costs ? or could this be another bail out ?.:rolleyes:

[P.Pilcher]

The government introduced this draconian legislation which has affected us all due to the percieved problem of a few landlords not doing the decent thing with regards to tenants deposits. If interest rates have fallen to an extent that the DPS is no longer financially viable, then I would expect the government to carry the can and subsidise the DPS. You can however bet your sweet bippy that they won't and we will therefore shortly be reading of the introduction of a fee scale for the DPS to manage tenants deposits lodged with it. You can also expect such charges to be levied on landlords.

I'm in a cynical mood today!

P.P.

[Paul_f]

You can however bet your sweet bippy.......Now how many can remember Rowan & Martin's Laugh-In?

[Poppy]

How will the DPS survive if savings interest rates are very low? Like that question. Thank you for raising it. I'm going to mull it over.

[P.Pilcher]

I'm glad you can Paul. In those days it kept me and friends in stitches. There were a couple of episodes which were not originally broadcast in the U.K. so in th 80's they decided to broadcast these as a memorial to the old series. Naturally, I watched them expecting happy memories. They were total rubbish! How on earth did we find them screamingly funny in the 60's? How our tastes had changed! The humour of Eric & Ernie still lives on however.......

P.P.

[Poppy]

I've mulled it over. Let's hope the earlier monies placed with DPS were not deposited in a bank on a frozen island north west of Scotland in the north Atlantic ocean :eek: