Smart Deposit scheme invalidation?

JonahSantrin

Firstly I'm not sure if this is the right place to post this and I'm sorry for the long post, but I'm kind of lost:

Signed a new tenancy agreement and moved in on the 12th (start date on the agreement). I decided to go with the smart deposit with FCC Paragon which is like an insurance for the LL and I paid £280.

I paid the money before I moved in (10th) as requested, I moved in to the property on the 12th and now and the agent is telling me as they didn't pay the deposit until the 15th, Paragon have voided the smart deposit. They said that they've paid after move-in day before and it's always been fine. They said to me because it's been voided I may have to pay for the full deposit now which is nearly £800 but advised I can avoid it by signing a new agreement showing the 19th as the move-in day. This would be to prove to Paragon that we moved in after the move-in day which is untrue and seems fraudulent to me.

I feel really uneasy about this and the agent is sounding very sketchy. As far as I'm concerned I paid on time as requested and I see no reason for me to sign a new tenancy agreement. I was told everything is okay so I don't understand why there's problems now.

If I sign a new agreement, surely that means the old one is void and I may incur more charges? Do I have any legal obligation to pay for the full deposit when I've already paid the deposit and moved in to the property? The landlord is not aware about any of this to my knowledge.

GDB2222

You should not sign fraudulent paperwork. This up to the agent to sort out.

da_rule

What does your agreement actually say regarding deposit? Is it just that you must pay £280 to the agent?

Ultimately, if you've met your obligations and then they've not done what they should do then it seems to be their problem.

JonahSantrin

Thanks for the reply. I don't want to at all but I'm worried that if the deposit fails our current agreement could become void and I could be evicted?

G_M

you have a valid tenancy. You cannot be evicted.

JonahSantrin

The agreement just states that the £280 is non refundable and I had to sign a declaration saying so.

In the contract it asks me to sign that I acknowledge it will be non-refundable but does say 'this forms part of the original tenancy agreement' - though I don't know if this means if the deposit fails for whatever reason then I no longer have a valid tenancy agreement.

It is indeed their fault, but I do feel somewhat pressured into paying as they are saying I'll have to pay the full deposit if they can't secure the smart deposit

JonahSantrin

Just to add that I have the receipt proving I paid the £280 and the agent has signed the documentation stating the same.

da_rule

As G_M says, your tenancy is fine. They are just trying to pressure you because they've made a mistake and they're worried that if there is an issue when you move out they may have to make up the shortfall.

If you want to sign a new agreement (and surrender your current one), then you may want to consider what financial inducement the agent wants to offer you.

G_M

These schemes are not that attractive for tenants. see this thread here:


https://forums.moneysavingexpert.com/showthread.php?t=2443597


Is this instead of a deposit? If you have paid what the tenancy agreement requires you topay, you've done your job. Any issues thereafter are not your problem.


The most the LL/agent could do is enforce the terms of the tenancy agreement by making you pay the required monet, which you appear to have done. The tenancy cannot be invalidated.

JonahSantrin

It is indeed instead of a deposit. I think it's classed as a form of 'warranty' to the LL for dilapidations, unpaid rent or the likewise.

I've seen the other post but unfortunately seen it after I had already paid it!

Would you suggest telling the landlord? Like I said I don't think he knows anything about it

da_rule

No need for you to do anything.

You have a valid tenancy so stop stressing. If the agent wants to come clean about their mistake then that’s up to them.