£270 credit check deposit - non refundable?

DaveLy

A friend of mine, single mother with a part time job and 2 children having split from her husband (druggy!) was looking for a house on benefits.

After finding a property, she used a local property managment firm in our local town which she paid £270 credit check deposit which she was told it was non refundable, (didn't sign anything yet), she was given a load of forms to complete. I pointed out she would get no benefits at all if she got the house she applied for given it's 4 bedroom as she'd only be entitled to 3 (she figured benefits pay £x amount regardless) which I told isn't the case. So she cancelled applying for that house after 2 days.

Now, given she has a reciept for the £270, nothing actually signed stating it's non refundable - which you'd assume is upon completion of credit check (which never happened), is she entitled to a refund?

As they're telling her no, as they told her it wasn't refundable.

poppysarah

Tell her to go to the papers and shame them into it.
Some landlord might offer her a home too

hellokitty08

I believe that this is covered by being a verbal contract. She was aware what the fees where for when she paid them and that they were not refundable, dont see why anyone would be interested in her "shaming" the estate / letting agent, when it was obviously the prospective tennant that was at fault.
How do you know that in the two days that she took to cancle that cost where not incured by the agent?

I am afraid she will have to chaulk this up to a life lesson.

Ragtimeplayer

Can I ask a question thats related to the ops question?

I am looking to rent a house for myself to escape a bad partnership and my son will be visiting me there but not moving in with me, but I will need a minimum of 2 bedrooms for when he stays over.

I plan on claiming housing benefit and am going to look at a 3 bedroom house tomorrow as thats all I can find in my area thats suitable.

Will this have an adverse effect on my claim?

ladylumps45

we paid 172 pounds for the same checks .our guarantor failed the checks and we are not entitled to the money back.as your friend kind of pulled out after 2 days its likely that the agent had started all those checks so she shouldnt be entitled to her money back .

tbs624

DaveLy wrote: »

A friend of mine, single mother with a part time job and 2 children having split from her husband (druggy!) was looking for a house on benefits.

After finding a property, she used a local property managment firm in our local town which she paid £270 credit check deposit which she was told it was non refundable, (didn't sign anything yet), she was given a load of forms to complete. I pointed out she would get no benefits at all if she got the house she applied for given it's 4 bedroom as she'd only be entitled to 3 (she figured benefits pay £x amount regardless) which I told isn't the case. So she cancelled applying for that house after 2 days.

I think you gave her some erroneous advice - if she qualifies for LHA she would be entitled to a prescribed number of rooms ( depending on kids' ages etc) but could choose to pay a top up on a more expensive property.

DaveLy wrote: »

Now, given she has a reciept for the £270, nothing actually signed stating it's non refundable - which you'd assume is upon completion of credit check (which never happened), is she entitled to a refund?

As they're telling her no, as they told her it wasn't refundable.

When there is an early withdrawal from the process then the LA should only keep what would be a "reasonable" amount from that deposit, to accurately reflect the actual work done by them within the 2 days. If they say that they have already applied for the credit checks then your friend should ask for copies - she is entitled to them. She should have a look here on LHA before looking at any other properties & she may find it helpful to talk to someone at the local CAB, both about the deposit and about her benefit entitlements, so that she doesn't make any more expensive mistakes that she can probably ill afford.