Advice re return of deposit

Trickyann

Have posted previously about DD's rubbish LL & agent and they seem to be having one last throw of the dice. DD shared a house at uni with 4 others the deposit being £1000 taken when they signed the contract December 2010 to move in July 2011. Obviously the deposit was £200 each and DD paid one of the other student's deposit as she was short of cash at the time and they needed to secure the house. (so she paid £400 with payments of £300 and another of £100 she has receipts) This deposit was not protected until almost a year later I later discovered after insisting on having the paperwork when initially chasing the deposit, but that's another story.

After they all moved out July 2012 when the tenancy ended, it took almost 2 months and a lot of calls to get any deposit back, and then DD received £250. She enquired a couple of times and was told they were looking into it but nothing happened. It was not until one of the other students (the one dd paid the deposit for) complained she had not received any deposit and was told each of the other students had received £250 back and she should speak to them. DD then receives a Fb message from said other student asking for her £50 from each of the other 4. DD then rings LA again who confirm receipt of £400 from DD and nothing from 5th student but still (although stating that contract is between 5 so each should get 1/5th back )gave 4 £250 and 5th student nothing. DD has been told it is nothing to do with the LA any more and she has to chase the others for her money. Where does she stand in this, any suggestions? Do the LA have an obligation to sort this as they gave the money back?
(yes I have advised her of her folly in lending money although that happened some time ago and she only did it to ensure they got the house)

Fire_Fox

- So you are sure the deposit was lodged but very late?
- Who did your daughter pay the deposit to?
- Who returned it to her two months later, the lead tenant?
- Your daughter enquired of whom a couple of times, the deposit scheme?
- The other tenant complained to whom that she had not received any deposit back?
- What steps has she taken to get her money back from the other tenants?

Arguably either the money should have been refunded as one lump sum to the group because they were one household with one AST or all the tenants should have had £200 back. Your daughter paid the money on behalf of the other tenant not on behalf of herself, the money was held against the other tenant's name. If it was a loan she should have got the money back from the other tenant during the tenancy, the way she left it your daughter would have lost twice as much money as anyone else if there had been a retention.

Trickyann

Thanks for reply
-Yes checked with deposit service when finally got ref number and deposit was lodged £1000 but almost 6 months after tenancy started and 12 months after they paid it
-Daughter and other 3 tenants paid letting agent deposit (daughter has receipts and office agrees she paid £400 from their own records)
-LA returned £250 to daughter after much chasing - they also returned £250 to 3 other of the tenants despite there being 5 on the tenancy (daughter paid 400, 3 others paid £200 and 1 paid £0 deposit)
-Tenant who daughter paid for complained to LA that she had had no deposit back - I am assuming that she forgot she didn't pay it in the first place as it was December 2010
-She has not tried anything yet as this only came fully to light that the LA were not going to sort it today after daughter called them having had no response to her enquiries
- She foolishly paid both deposits of her and her friend as she (having no experience of renting before) assumed that at the end of the time having receipts would get back what she paid in) Appreciate what you are saying about all one tenant so should get back £200 each however the LA did not do that - they saw that one tenant had not paid any deposit so in their logic repaid the £1000 equally between the other 4.
I think what you are saying is that although they have probably done this wrong it is up to daughter to sort out with ex tenants.
This is further complicated by the fact that at least 1 of the other tenants have paid their extra £50 received to the tenant who paid no deposit as she asked them for it on the advice of the LA. If they refuse to pay her is this a matter for the small claims?

dancingfairy

So basically the one who had her deposit paid for her has 50 now that she owes to your daughter and 2 others have had an extra 50 pounds which they also owe to your daughter. To be honest it sounds like a right mess and I'm not sure she'll see the money back.
One option is to go to small claims but this will obviously cost money and technically they don't owe any money to your daughter they have merely been overpaid their deposit, proving the link is going to be hard work and there is no guarantee it will succedd (plus I believe it's probably about 40 pounds to file a small claims ccourt action).
Second option is to go after the letting agent for dividing up the deposit in a rather odd way (that has caused all this trouble).
I hope someone can come up with a better idea for you.
Hmmmm.
df

embob74

As I worked it out your DD is actually £50 better off.
As the tenant who never contributed to the deposit has asked for the deposit back there seems an intention to get money back which they never paid in the first place. If the LA had paid each tenant £200 back as one-fifth of the deposit it appears the non-paying tenant would be keeping all their £200 share and not refunding your DD.
Can your DD not just ask the other tenants for the £50 back? Particularly from the tenant she paid the deposit for.

Fire_Fox

It's a merry mess. The easiest would be to ask the tenant who didn't pay for £150 since the money was paid on her behalf by your daughter/ loaned by your daughter and never paid back. Send her a letter before action. I appreciate your daughter didn't understand the implications of what she was doing but that is not really the letting agents problem it is a life lesson. Your daughter actually would not have been any better off had the letting agent divided the deposit properly, they should never have refunded your daughter £400.

Trickyann

Hi all thanks for replies

FF - I am not sure if you are saying my daughter should not have been refunded £400 because you think she was refunded that amount or that the LA should not refund her £400 - but to clarify she was refunded £250 as were the three other tenants who paid a deposit themselves.

embob - I can see your reasoning that daughter is £50 up (from the apparently proper split of £200 per each 5 tenants) but when she paid two deposits (one for her and one for friend) and expected to receive that back she doesn't quite see it that way!

I will try appealing to the LA as they at least have proof that daughter paid tenant 5's deposit, so the least they can do is email or text the others confirming that - however going on their performance up to this point I won't hold my breath. Daughter will have to try contacting the other students and see how it goes. Shame it is an expensive lesson to learn!