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Blue Eyes
10-02-2010, 07:58 AM
I am in the process of suing my LA for breach of contract and for charging me for extending an AST which I didn’t require.

In an offer of settlement, the LA has agreed to terminate the contract without any ties. I am not accepting this offer at the moment but it raises a question about the tenant’s deposit and what happens to this if the contract between the LL & LA is ended.

The LA have suggested “transferring the deposit”, and asked me for “details of the bond scheme”???

This leaves me a little bewildered. My understanding is that they should have placed the deposit into a scheme after they collected it from the tenant; so they should have the details themselves. My understanding is that all they need to do is give me the scheme certificate and reference number so that if the tenant leaves, in the future, it can be recovered.

Can anyone advise whether I’m correct or am I missing something?

_________________________________

I did it my way

jta
10-02-2010, 09:02 AM
The LA have suggested “transferring the deposit”, and asked me for “details of the bond scheme”???

This leaves me a little bewildered. My understanding is that they should have placed the deposit into a scheme after they collected it from the tenant; so they should have the details themselves. My understanding is that all they need to do is give me the scheme certificate and reference number so that if the tenant leaves, in the future, it can be recovered.

Can anyone advise whether I’m correct or am I missing something?



Which scheme though? If it was one of the insurance based schemes then the deposit will still be in their account. (hopefully).
If it's with the DPS then they (the DPS) should be holding the full amount.

Blue Eyes
10-02-2010, 10:59 AM
Which scheme though? If it was one of the insurance based schemes then the deposit will still be in their account. (hopefully).
If it's with the DPS then they (the DPS) should be holding the full amount.

How can I tell? I haven't looked specifically, but I do not recall reading anything about this in their terms of business or in the tenancy agreement. I could ask them but given the current litigation we’re not really on verbal communication terms.

It’s the first I’ve heard of an insurance based scheme. How does this work, i.e. is there a fee and who pays it? If this is the scheme they use, and it probably is, you say it remains in their account, in this case it may need to be transferred to another scheme. What do I need to do to arrange that?


Thanks

___________________________

I did it my way

Snorkerz
10-02-2010, 11:37 AM
Set up a free account with DPS, and the agent can transfer the deposit into that account, no matter what they are doing with the deposit right now. That way, you will have control over the deposit instead off the agent.

Blue Eyes
10-02-2010, 11:56 AM
Thanks, I'll do that. Suppose I can find DPS by search engine.

Snorkerz
10-02-2010, 12:08 PM
Thanks, I'll do that. Suppose I can find DPS by search engine.or go to http://www.depositprotection.com :)

Blue Eyes
10-02-2010, 16:50 PM
or go to http://www.depositprotection.com :)

Ok; thanks for that. I have opened up an account and have a landlords ID number. Do I just have to request that the LA transfer the deposit, giving them the ID number? Is there no other verification required, i.e. confirming who the deposit belongs to and concerning what property?

Seems too simple.