Agent mistake confirming wrong TDS deposit scheme?

Agent mistake confirming wrong TDS deposit scheme?

0:00 AM, 28th May 2024, About 6 months ago 7

Text Size

Hi Everyone, An unusual one here as my tenant engaged solicitors to claim against me, because my agent made a mistake on the AST prescribed information stating the deposit is put in the TDS custodial scheme.

However, I actually used the TDS insured scheme.

Has anyone come across this issue before and could the tenant be successful against me in a deposit claim?

Many thanks

Fraser

TDS’ Insured Scheme Explained

“TDS insured is completely free to join. You pay a small fee to protect each deposit, which means you can keep your deposit in your bank account for the duration of the tenancy, keeping the accrued interest.

At the end of the tenancy, you administer the repayment with the tenant. If the tenant disputes any deductions, we provide a free dispute resolution service.”


Share This Article


Comments

DAMIEN RAFFERTY

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:09 AM, 28th May 2024, About 6 months ago

First thing I would do is ring TDS and explain what has happened
You may well need specialist legal help with this

Filsan Ali

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

15:29 PM, 28th May 2024, About 6 months ago

I'm not a lawyer so please double check with one but as a self managing landlord, I believe legally if the deposit was registered within 30 days of the commencement of the AST, you should be covered and an administrative error/typo is just that if they were also provided with details of it e.g registration number etc with the prescribed information within that timeframe.

If either was not done within 30 days you maybe in default penalty territory which is between X1 to X3 of deposit amount. The larger amount awarded for more serious negligence/disputes etc.

They won't get very far if its just down to a typo especially within the same provider and it doesn't impede their rights to use the scheme for any dispute resolution etc.

Hope this helps. Best of luck!

Fraser Hopewell

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

16:01 PM, 28th May 2024, About 6 months ago

Reply to the comment left by Filsan Ali at 28/05/2024 - 15:29
hi thanks, that was my thoughts everything was done on time etc and given registration number etc

Filsan Ali

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

16:58 PM, 28th May 2024, About 6 months ago

Reply to the comment left by Fraser Hopewell at 28/05/2024 - 16:01
Great! I'm not sure if TDS would get involved in this matter as they usually deal with tenancy deduction disputes based on inventory reports etc. Once you've explained your legal position they should see the genuine futility of their claim but it doesn't hurt to remind the tenant you'll be seeking to recover your legal costs arising from court action which you're entitled to should you win.

It usually reminds the unreasonable of the consequences of frivolous claims or serves to educate the uninformed tenant, saving unnecessary escalation.

DPT

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:16 AM, 29th May 2024, About 6 months ago

You may be able to involve the agents redress scheme in this and they may force the agent to cover the cost of the inevitable penalty. You will need to go through the agency's own complaints service first though.

PH

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

12:21 PM, 29th May 2024, About 6 months ago

...and be prepared for the agent to try to wriggle out of any blame

Fraser Hopewell

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

19:14 PM, 31st May 2024, About 6 months ago

Yep the agents already wriggled out of it !

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More