Letting Agency stealing deposit money

[Wahine]

I used a letting agency to rent my flat and have regretted it ever since. At the start of the tenancy I had to force the letting agency to register my tenants deposit money with a secure deposit sheme, it was hard work but I got there in the end. Now, my tenants are moving out and we've discovered that the letting agency took the money out of the secure deposit scheme again, just 2 months into the tenancy, without informing me or my tenant.

Now the letting agency appears to be going under (their website says they are not accepting anymore business) - we have contacted the director of the company but he just keeps fobbing us off saying that he'll look into his paperwork.

My tenants have sought legal advice and have been told that ultimately the responsibilty for the deposit stops with me, the landlord.

Obviously what the letting agency did is theft and frauud, but I have no idea where to begin to sort it all out. I'm currently residing in Denmark, so can't visit the CAB.

I'm also a bit shocked that the secured deposit scheme released the funds without letting me or my tenant know about it.

Any advice or help on this would be very gratefuly received.

[carmalee]

can't comment with authority but you seem to hold all the cards - can you not access CAB on line? -IMO you need to register your concerns somewhere now - at the moment you have contact with the agency - this may not continue in the near future. Some Solicitors give a free half hour consultation - that may be worth while investigating but you need to get this nailed now. good luck and 'shame'

[themas]

1. Presumably you know which deposit scheme was used. Look their details up on the internet. I think you will find that if the deposit is withdrawn from the scheme they automatically inform the tenant. In any case, contact them and ask for information about what happened, why the deposit was withdrawn by the agency (i.e. why did the scheme tnink the agent had authority to do this) & who they notified when this happened. If they did not follow the correct procedure it may be that you could pursue a claim against them.

2. I'm not sure whether the legal advice the tenants have had is correct. It may depend on the exact terms of the tenancy agreement and of your contract with the agency.

3. However, assuming you have to reimburse the tenants (& you must make sure there are no grounds for retaining any part of the deposit before doing so - you clearly cannot rely on the agent to do a proper check out inventory) then your only recourse (apart from the possibility in 1 above) would seem to be to make a civil claim against the agent. However, this will cost you a Court fee & - if they are insolvent - will not produce your money. Theft & fraud is, of course, criminal but I'm not sure the police would see it as such - they would very likely tell you to deal with it as a civil matter. However, you could ask them.

[wizard]

Send them a "Letter Before Action" demanding that they return the money that is due to you. Specifically give them 14 days to respond and rectify the issue and if they don't, sue them for the money.

You can do this online through www.moneyclaim.gov.uk and it will cost you about £30 but you can claim it back from the letting agency as a legal cost.

You fear the letting agency is going under, my advice is get your claim lodged with the county court as soon as possible. If you don't and the company goes bust, you are very unlikely to have a leg to stand on as you will need to go through their administrators which will take months, if not years and even then you are unlikely to receive the full amount.

If the letting agency fails to reply to the court papers within 14 days, then you will be award a judgement by default (CCJ) against the company which will send you to the top of the pecking order should the company go bust.

[wizard]

Sorry I forgot the add, with reference to point 2 of themas' post....

The legal advice is correct and ultimately the responsibility for the deposit stops with the landlord.

To prevent the current tenants from entering into a legal dispute with you, I think it would be in your best interests to pay them the deposit back with your own money and then follow the steps as previously noted in my first post.