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Deposit Protection Service

They refunded me my deposit without interest, I asked for the interest and they said they are keeping it as the estate agent didn't request it!

Surely it's my money?
«1

Comments

  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    I don't think interest is generally payable on deposits held in the Deposit Protection Service.

    Interest earned by the scheme on monies deposited is used to finance the scheme itself.

    Interest may be paid at 2.32% below the BoE base rate where the LL (or agent) requests this.

    What does your tenancy agreement say with regards to paying interest on the deposit?
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    Having just read the terms & conditions again, I think any party requesting interest should have it paid pro-rata to the amount of deposit recovered at the rate indicated above. You only get it if you request it when applying for the return of the deposit.
    Interest will be paid for the period commencing 10 calendar days following
    receipt of the Deposit up to close of business the day before the repayment is successfully processed.
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • sooz
    sooz Posts: 4,560 Forumite
    Read their FAQs

    It says that each party can elect to waive their interest, in which case it stays with the DPS.

    Did you elect to waive your interest? I guess not, if you are asking here!
  • tbs624
    tbs624 Posts: 10,816 Forumite
    Premier wrote: »
    I don't think interest is generally payable on deposits held in the Deposit Protection Service.

    In its first year of operation, the DPS actually paid out £200K in interest to LLs/Ts
    ( if a LL is entitled to retain part of the deposit s/he is also allowed the interest pro rata)
    Premier wrote: »
    Interest earned by the scheme on monies deposited is used to finance the scheme itself.
    *Some* of the interest is used, which is why.....
    Premier wrote: »
    Interest may be paid at 2.32% below the BoE base rate where the LL (or agent) requests this.

    Andrew speak to the LA and check what was agreed either in the info given to you about the DPS or in your tenancy agreement: DPS can keep all of the interest if no repayment had been specified when the deposit was registered/return was requested..
  • andrewmp
    andrewmp Posts: 1,800 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    sooz wrote: »
    Read their FAQs

    It says that each party can elect to waive their interest, in which case it stays with the DPS.

    Did you elect to waive your interest? I guess not, if you are asking here!

    I've read that already, they say that you can choose to waive the interest (who would do that?). I guess the agent does, maybe they get a commision, they were very keen to do the refund request. I could do it myself but they wouldn't give me the repayment ID, they insisted I give them mine instead, mmm, it won't be much £450 deposit, one year but just thought why should they get it!
  • sooz
    sooz Posts: 4,560 Forumite
    andrewmp wrote: »
    I've read that already, they say that you can choose to waive the interest (who would do that?). I guess the agent does, maybe they get a commision, they were very keen to do the refund request. I could do it myself but they wouldn't give me the repayment ID, they insisted I give them mine instead, mmm, it won't be much £450 deposit, one year but just thought why should they get it!

    You should not have given the agent your deposit return ID. It should stay confidential. One party requests the return, & the other is then contacted. Neither party should disclose their ID to the other.

    Do you now have your deposit?

    As I read it, EACH party can elect to waive it. Not just one. The EA must have waived your right for you!
  • andrewmp
    andrewmp Posts: 1,800 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    sooz wrote: »
    You should not have given the agent your deposit return ID. It should stay confidential. One party requests the return, & the other is then contacted. Neither party should disclose their ID to the other.

    Do you now have your deposit?

    As I read it, EACH party can elect to waive it. Not just one. The EA must have waived your right for you!

    Yeah, sounds like I was conned, they wouldn't give me their ID, I said I'd just do the request myself. They said I had to give them my repayment ID.

    I've got the full deposit back minus interest, oh well, you live and learn.
  • tbs624
    tbs624 Posts: 10,816 Forumite
    andrewmp wrote: »
    .... they were very keen to do the refund request. I could do it myself but they wouldn't give me the repayment ID, they insisted I give them mine instead...
    :naughty: Other tenants please note: the answer you give to this one is "no".

    This is another area of contention that tenants need to highlight to the Housing Minister, to their MPs and to the 3 deposit schemes themselves.

    As part of their repertoire of dodgy unprofessional behaviour some LAs lead tenants to believe that they *must* hand over their personal ID number - the fact that this should not be done needs to be announced to tenants in a prominent position in large block capitals somewhere, rather than buried away in the small print.

    Andrew - maybe you could write first to the LAs director and tell them that they need to pay you the interest owed on your deposit: you may like to add that you feel that a letter to the local press may be in order, to warn other tenants about their business practices. If the LA is a member of ARLA, NAEA or NALS then maybe you'd like to drop them a line too, raising the issue of their unprofessional conduct.
  • sooz
    sooz Posts: 4,560 Forumite
    tbs624 wrote: »
    :naughty: Other tenants please note: the answer you give to this one is "no, you dodgy thieving b*gger".

    This is another area of contention that tenants need to highlight to the Housing Minister, to their MPs and to the 3 deposit schemes themselves.

    As part of their repertoire of dodgy unprofessional behaviour some LAs lead tenants to believe that they *must* hand over their personal ID number - the fact that this should not be done needs to be announced to tenants in a prominent position in large block capitals somewhere, rather than buried away in the small print.

    TBS624 - it is also written in quite clearly on the top of the letter that is sent with the repayment ID that the ID is confidential.
  • tbs624
    tbs624 Posts: 10,816 Forumite
    sooz wrote: »
    TBS624 - it is also written in quite clearly on the top of the letter that is sent with the repayment ID that the ID is confidential.
    I know it is Sooz - but I think that some tenants either manage to miss that statement altogether or construe it as "keep it way from anyone extraneous to the tenancy agreement"

    The trouble is that for many tenants the spoutings of the LA are given far more credence than should be the case and the tenant doesn't always understand that the LA acts for the LL rather than as some impartial third party, or that £££ glisten before the LAs eyes at every opportunity.

    The statement could be added to: "For clarification, this number is purely for *your own personal use* when reclaiming the deposit and should not be divulged to anyone else. Please ignore your LA/LL if s/he says that it is vital that you pass the number to them and that to do so will speed up the return of your deposit"
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