Letting Agent Deposit fraud

blondebrunette1

I am at the end of my tether and don't know where to go from here:

I am a landlord and my Letting Agent went into compulsory liquidation in March but continued to trade under a slightly different name since they have now shut up shop suddenly and disappeared leaving landlords/tenants have no where to go! My tenant left with rent owing etc over and above the amount of my bond which i am trying to get back.

The director has been taking deposits from tenants and not paying them into DPS sometimes logging the details raising an ID number and not paying over and cancelling account! We are talking dozens and dozens of landlords out of pocket as they are legally responsible for the deposit even though the agent has stolen the money and massive amounts of money involved here possibly 100k and over!

The local paper have ran a story this week and trading standards are investigating.

I have issued a Statutory Demand against the director personally which she has obviously applied to set aside saying its not a personal debt and we have a hearing on 23 November I am trying to get evidence that she benefited from it personally.

I have set up a page on facebook and had lots of ex employees with outstanding awards against the company come forward confirming my worst fears about the deposits but none willing to give witness statements.

I have been to the Police to little avail - is there anything else I can do ? This is horrendous that this can happen and the DPS system has such a flaw that a ID can be raised before the money submitted into the account.

Thanks I am fighting a loosing battle this has been going on since June but has been happening for years behind the scenes and I realise the seriousness of my post and allegations.

tbs624

Your previous post at the start of October [Edit 2011] refers to you having 3 BTL properties and using the LA only to find and reference the Ts. You then refer to collecting the rent yourself and advised other MSEreaders:

blondebrunette1 wrote: »

Also remember if you take a bond direct for your tenant, deposit it straightaway with the DPS scheme or you could be up for a fine x3 its value.

What is it that the LA currently owes you? Did you leave the deposit registration up to them?

Is the LA signed up to ARLA, NALs etc?

blondebrunette1

I paid the letting agent for preparing the tenancy agreement and lodging the deposit from the tenants in October 2011 and placing it with the DPS - the letting agent was banned from TPO back in March and I'm pretty sure they aren't signed up with anyone else.

I now deal with lodging all my tenants deposits myself.

Thank you.

blondebrunette1

Sorry October 2011 not 2012 and the agent owes me £895 for the amount of the deposit taken.

tbs624

It sounds remarkably similar to this news report, from the Matlock Mercury

http://www.matlockmercury.co.uk/news/local-news/fears-over-lettings-agency-1-5105167

Notice that sentence containing this " tenant paid a deposit – as well as a £50 DPS fee"

Given that DPS make no charge for the use of their scheme that one's a fine example of an LA rip-off IMO.

tbs624

blondebrunette1 wrote: »

Sorry October 2011 not 2012 and the agent owes me £895 for the amount of the deposit taken.

To cover yourself against an action by your Ts, have you now ensured that their deposits *are* scheme registered *and* have you provided them with the full "prescribed information"?

Insist that the police take a proper statement from you regarding the LAs actions/omissions.

For your future lets, don't ever simply trust an LA who says they have dealt with a deposit properly - seek full confirmation from them and/or the schemes themselves. You can check online whether a deposit is in fact registered, using the tenancy information. Check with the Ts themselves that they have in fact been given the prescribed information .

blondebrunette1

That's the story tbs624 the £50 was to cover their admin costs.

Oh well I've learnt the hard way I suppose.

Thank you.

blondebrunette1

Yes I have lodged all my tenants deposits myself correctly into DPS and paid them over providing them all with their Deposit ID numbers. Thank you for your help tbs624 your knowledge is much appreciated.

tbs624

blondebrunette1 wrote: »

Yes I have lodged all my tenants deposits myself correctly into DPS and paid them over providing them all with their Deposit ID numbers. Thank you for your help tbs624 your knowledge is much appreciated.

It is not just the deposit ID numbers that you as LL must ensure the Ts are provided with.

I posted last week about a recent Court of Appeal case in which a LL has been ordered to pay the Ts 3x the deposit payment for failing to give the Ts the full "prescribed information"

see http://www.depositprotection.com/documents/prescribed-information-template.pdf

FireWyrm

And the government is still umming and ahhing over the idea of actual regulation for Letting Agents. This type of rampant and preventable dishonest business dealing really annoys me.

I've been the victim of an unscrupulous employer who has also 'walked away' from what he owed me in salary too and there is nothing I can do about it apparently. Its the same with these Letting Agent sharks....and people complain about PDLs and unscrupulous behaviour.

Fire_Fox

Landlords need regulating at least as much as letting agents, arguably more so because it is landlords who have all the responsibilities and obligations towards naive lay tenants. If all landlords were as knowledgeable, proactive and professional as some of the regulars here letting agents would get away with far far less than they do at present, the industry would effectively begin to self regulate.

There already is contract law and the Supply of Goods and Services Act to protect landlords from poor agents. If businesses go bankrupt to avoid paying their creditors there is little you can do, but that is the same in dealings with many types of small businesses it is far from confined to letting agencies.