Landlord - deposit repayment from TDS

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    Landlord - deposit repayment from TDS

    Good evening,
    will be grateful if anyone can share a successful experience of getting the deposit out of the Tenancy Deposit Scheme.
    We had tenants from hell who stopped paying before coronavirus, we started eviction process but it was stayed. Luckily, the tenants moved out leaving thousands of rent arrears (let alone legal expenses, damage etc.).

    Our other mistake was to use TDS Custodial. Their flow says that if the Landlord requested deductions from the deposit (we asked for the deposit in full to be paid to us) and the tenant does not respond to reminders, then at certain point the Landlord submits Statutory declaration and deposit will be paid to him.

    We reached this point and TDS quickly told that as there is no consent to use dispute resolution, deposit can only be repaid upon a court order or if parties reach an agreement.
    We pointed out that our tenancy agreement allows for the deposit to be used against unpaid rent and that it has a clause where both parties consent to using alternative dispute resolution.

    TDS response made no sense: Either party can withdraw consent to use us, as we provide the choice to use our services. The clause cannot be enforced, as the tenant has a right to withdraw consent if they wish to, and potentially go to court or seek their own independent legal advice in relation to the dispute.

    We understand that TDS are willing to hold the funds as long as possible, even if breaching their own rules, however we can't decide of the best way forward: complain to TDS (they are not regulated, so no independent adjudicator), take TDS to Small claims or take the tenant (whose whereabouts are unknown) to Small claims.
    Needless to say we are not going to use Custodial scheme any more but any advice of getting the deposit out of TDS would be appreciated.

    #2
    Sounds as if TDS is trying to steal the cash.

    Various deposit schemes are holding onto vast amounts of cash that is not theirs - roughly a 1/4 £million each I understand.

    It's a nice earner.

    Thanks for the warning not to use TDS Custodial.

    Comment


      #3
      You're going to need to take the tenant to court, if the tenant doesn't agree to use TDS. They can withdraw their consent to use it at any time, albeit in doing so they are now in breach of contract with you.

      Comment


        #4
        AndrewDod,

        Not true, if the tenant has refused consent to ADR, TDS has a process to follow: https://www.tenancydepositscheme.com...t-Disputes.pdf

        Comment


          #5
          Allondon,

          Same boat, they've stolen my money and many many others on Trust Pilot.
          Move on with your life.

          Comment


            #6
            Originally posted by newtenant9011 View Post

            Not true, if the tenant has refused consent to ADR, TDS has a process to follow: https://www.tenancydepositscheme.com...t-Disputes.pdf
            Exactly as I said - they have a procedure (a "process") which allows them to steal/retain money

            Comment


              #7
              Originally posted by Allondon View Post
              Needless to say we are not going to use Custodial scheme any more but any advice of getting the deposit out of TDS would be appreciated.
              Ask TDS for their statutory declaration form.
              I think the help desk are getting confused about what you want to do.
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment


                #8
                Thanks everyone. I'm currently trying to understand if TDS own rules 3.27-3.34, 5 or 6.5 are applicable as they seem to contradict each other (Rules for the Independent Resolution of Tenancy Deposit Disputes).

                Comment


                  #9
                  Originally posted by AndrewDod View Post

                  Exactly as I said - they have a procedure (a "process") which allows them to steal/retain money
                  If it goes to anyone it would be the tenant, not the landlord if it's under a court dispute - the deposit belongs to the tenant until such a time as the tenant agrees to release it to the landlord, or the landlord wins a claim either through court or ADR... this process benefits landlords.

                  Comment


                    #10
                    Mydeposits does not do this (for example). What process benefits landlords -- your comment is baffling?

                    Comment


                      #11
                      Originally posted by newtenant9011 View Post

                      If it goes to anyone it would be the tenant, not the landlord if it's under a court dispute - the deposit belongs to the tenant until such a time as the tenant agrees to release it to the landlord, or the landlord wins a claim either through court or ADR... this process benefits landlords.
                      Not so, when they steal the money themselves neither landlord or tenant benefits.
                      Just take a look at DPS reviews on trust pilot. Shocking.

                      Comment


                        #12
                        I'm having the same problem with DPS. I've got a ccj against the T and a SD. I've still not got my money.

                        Section20z - I'll look at the reviews.

                        Comment


                          #13
                          Berlingogirl,

                          What does your SD say? Did the Judge specifically make an order that the deposit was to be returned to you as part of the clearance of the arrearage? If no specific order to that effect was made, the deposit is still the tenant's money until they agree to release it to you. I've seen a few instances now where despite the tenant owing money to the landlord, the deposit is still released to the tenant as the landlord did not specifically say that the deposit should be retained.

                          Comment


                            #14
                            MW1985,

                            Yea that is only one example of the hundreds of bear traps designed to rob ordinary tenants and landlords. Best not to take deposits at all and uplift rent accordingly - that's what I (mostly) do.

                            If the systems were genuinely designed to help people carry out procedures in a good manner, and deal with crooks, they would not be designed with arbitrary bear traps and irrelevant connections. But they are not designed for that purpose.

                            Comment


                              #15
                              Based on the posts above, I will in future never use TDS or DPS and stick with My Deposits.

                              In any case I always use the scheme where I keep the money always as the power remains with myself. Worth paying up for it despite today's low interest rate world.

                              Comment

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