Deposit Unprotected - Claim in Court

SuperSaver123

Hi,

I had a joint property that recently I bought my ex out and the tenants that rented one of the rooms out had put a claim in for an unprotected deposit after I had served them the notice to leave. I know I realise the notice was incorrect but they were in arrears and I thought it would be offset against their rent arrears. They suggested that verbally but did not have that in writing.

They now have put a claim for 3 * the deposit amount and I am just wondering what the procedure is. I understand I need to fill in Section B (I intend to contest this claim based on 2 and 3 below) and Section D (based on points 1 and 5). Is there a template for Section E- written evidence?

Could you tell me what the procedure is and if I should get a solicitors to help me out with this as I cannot get a CCJ as I need to remortgage.

TIA!


My defense is that:

1. The addressee is incorrect - should be Both Landlords as per attached tenancy agreements. (Does that invalidate the claim?)

2. The tenant has refused to accept the refund of the deposit. A cheque has been given. (Yes after the claim was raised but they never raised any demands previously even though I appreciate this was jointly my responsibility.)

3. The tenant is in arrears and currently rent arrears are of 3 times the deposit already. My understanding was that they wanted to offset their arrears against the rent. They suggested that verbally but I never had a statement signed to confirm it.

4. The paperwork has been poor due to major change in family affairs. (I may not even say that but that it true to the extend that we parted not on friendly terms with my ex and I have no idea what paperwork he has on the security but I do not remember putting this deposit in any of the schemes).

5. The tenant has failed to follow the procedure of requesting the deposit back. They have not sent any letters requesting the deposit or expressed that they would be concerned about it. Not until I have said that I would serve Section 21 on them.

Comms69

SuperSaver123 wrote: »

Hi,

I had a joint property that recently I bought my ex out and the tenants that rented one of the rooms out had put a claim in for an unprotected deposit after I had served them the notice to leave. - were they tenants or lodgers? IE did your ex live there? I know I realise the notice was incorrect but they were in arrears and I thought it would be offset against their rent arrears. They suggested that verbally but did not have that in writing. - irrelevant.

They now have put a claim for 3 * the deposit amount - in small claims channel? Have you asked whether the court accepts jurisdiction? Normally small claims courts refuse to deal with the penalty element. and I am just wondering what the procedure is. I understand I need to fill in Section B (I intend to contest this claim based on 2 and 3 below) and Section D (based on points 1 and 5). Is there a template for Section E- written evidence?

Could you tell me what the procedure is and if I should get a solicitors to help me out with this as I cannot get a CCJ as I need to remortgage. - You don't get a CCJ registered unless you lose AND don't pay.

TIA!


My defense is that:

1. The addressee is incorrect - should be Both Landlords as per attached tenancy agreements. (Does that invalidate the claim?) - no. Absolutely not.

2. The tenant has refused to accept the refund of the deposit. A cheque has been given. (Yes after the claim was raised but they never raised any demands previously even though I appreciate this was jointly my responsibility.) - irrelevant. They are not pursuing you for the deposit, but for the penalty!

3. The tenant is in arrears and currently rent arrears are of 3 times the deposit already. My understanding was that they wanted to offset their arrears against the rent. They suggested that verbally but I never had a statement signed to confirm it. - so counterclaim the rent arrears.

4. The paperwork has been poor due to major change in family affairs. (I may not even say that but that it true to the extend that we parted not on friendly terms with my ex and I have no idea what paperwork he has on the security but I do not remember putting this deposit in any of the schemes). - how on earth is that the tenants problem?! (or the courts?!)

5. The tenant has failed to follow the procedure of requesting the deposit back. They have not sent any letters requesting the deposit or expressed that they would be concerned about it. - nor are they required to. Not until I have said that I would serve Section 21 on them.

Wow that is probably the worst defence ive ever seen. go get legal advice from a solicitor, or agree to pay up.

ethranes

If you failed to protect a deposit and a tenant is calling you out on it, you definitely need to get a solicitor.

theartfullodger

If you flouted the law, a law in place for over 10 years and confirmed, twice, by Parliament, then yes of course your tenant is entitled to claim the penalty.

Parliament brought in the law to encourage landlords to abide by the law. Seems another one failed to take the hint!

Artful: (Landlord: Hope my paperwork is correct!)

SuperSaver123

Yes, my ex lived in the same house for a while but I doubt I can get him to confirm that - in fact I would probably get a denial.

Thanks everyone. I will go and see a solicitor. I am not even bothered so much about the penalty. I would quite happily pay the tenant to go away. But they do not want to.

I cannot be bothered to tell a full story here. So I will just skip on the comment of abiding the law and who did what and how.

Certain chapters in our lives need to be closed even if the closure is very costly, frustrating and painful.

Thanks All!

ThePants999

Don't know why people are telling the OP to get a solicitor. A solicitor is going to say exactly the same thing as us: that there is no defence here and the court will certainly award a penalty. Why pay for that "advice"?

AdrianC

SuperSaver123 wrote: »

They now have put a claim for 3 * the deposit amount

Which they WILL win, because you're bang to rights on it.

Could you tell me what the procedure is and if I should get a solicitors to help me out with this as I cannot get a CCJ as I need to remortgage.

If it goes to court and you lose, then so long as you pay the debt within a month, the judgement is unrecorded.

My defense is that:

You have no defence. You failed to fulfil your legal obligation to protect the deposit and provide the paperwork within 30 days.

1. The addressee is incorrect - should be Both Landlords as per attached tenancy agreements. (Does that invalidate the claim?)

You're both jointly and severally liable. Or, rather, were until you bought your ex-colleague out. Then it became just you. The tenancy continued...

2. The tenant has refused to accept the refund of the deposit. A cheque has been given. (Yes after the claim was raised but they never raised any demands previously even though I appreciate this was jointly my responsibility.)

They've refused to accept payment of one third of what they're owed. You haven't offered them the full amount.

3. The tenant is in arrears and currently rent arrears are of 3 times the deposit already. My understanding was that they wanted to offset their arrears against the rent. They suggested that verbally but I never had a statement signed to confirm it.

So launch a claim for that debt.

4. The paperwork has been poor due to major change in family affairs. (I may not even say that but that it true to the extend that we parted not on friendly terms with my ex and I have no idea what paperwork he has on the security but I do not remember putting this deposit in any of the schemes).

That's not the tenant's problem.

5. The tenant has failed to follow the procedure of requesting the deposit back. They have not sent any letters requesting the deposit or expressed that they would be concerned about it. Not until I have said that I would serve Section 21 on them.

The correct procedure is to claim it from the deposit protection scheme it was lodged in. Can you spot why they might not be able to do that...?

SuperSaver123 wrote: »

I would quite happily pay the tenant to go away. But they do not want to.

Great. Then pay them the full 3x that they're legally entitled to. Send it to them together with a letter before action over their debt to you.

Certain chapters in our lives need to be closed even if the closure is very costly, frustrating and painful.

Absolutely. So pay them their due, and close the chapter.

Wanderingpomm

Did you just rent them the room? Then they might be a lodger. What did the agreement say?

somethingcorporate

Appreciate it's a bitter pill to swallow OP but tenant/landlord is a business relationship governed by contracts and not a friendly one. You should treat it like one.

Comms69

SuperSaver123 wrote: »

Yes, my ex lived in the same house for a while but I doubt I can get him to confirm that - in fact I would probably get a denial.

Thanks everyone. I will go and see a solicitor. I am not even bothered so much about the penalty. I would quite happily pay the tenant to go away. But they do not want to.

I cannot be bothered to tell a full story here. So I will just skip on the comment of abiding the law and who did what and how.

Certain chapters in our lives need to be closed even if the closure is very costly, frustrating and painful.

Thanks All!

They do not have a choice. If you settle the matter the court has no authority to act.


However you haven't answered some of the questions; so I cannot say if the case could even progress.

Comms69

ThePants999 wrote: »

Don't know why people are telling the OP to get a solicitor. A solicitor is going to say exactly the same thing as us: that there is no defence here and the court will certainly award a penalty. Why pay for that "advice"?

Because they may have claimed it via MCOL; which is the wrong procedure.


Or, as the OP has said, the tenant was infact a lodger.