Letting agency refusing to return holding deposit

Hannimal

I am asking this on behalf of a friend. 

My friend applied to rent a flat through a letting agency in Bristol. He had to put in a holding deposit of £200 to reserve the property while they ran credit checks. Before they did, he told them that he had had a CCJ on his credit file but that this had been settled - it was due to parking tickets that went to his old address and he paid them in December 2021. He has evidence of all of this but not of the conversation with the agent, which was a discussion during property viewing. 

The letting agency ran the credit check and rejected his application on basis of undisclosed CCJs. This means now he has not just lost the property and is in need of housing still, but also the letting agent is refusing to return the holding fee.

What can he do? There is no record of the conversation where he disclosed that he had the CCJ (which has been paid but not sure if creditor has informed courts). 

On a moral note it just seems these leech letting agencies are doing anything they can to turn a profit from those of us who already have the least. 

canaldumidi

If he disclosed (all) the CCJ(s) and the agent told him they would ignore them and approve his application, and provided no other CCJs or adverse credit records showed up, then yes, he should get the holding deposit back.

The difficulty is ne of proof.

If they refuse, his recourse is a claim via the Small Claims Track here.

However, if the agent denies the conversation took place, or claims it was different eg "We'll approve your application if the CJJ has been removed" rather than his words " this had been settled", then the judge would have to decide which version he believes, so success is possible but far from guaranteed.

saajan_12

Hannimal said:

I am asking this on behalf of a friend. 

My friend applied to rent a flat through a letting agency in Bristol. He had to put in a holding deposit of £200 to reserve the property while they ran credit checks. Before they did, he told them that he had had a CCJ on his credit file but that this had been settled - it was due to parking tickets that went to his old address and he paid them in December 2021. He has evidence of all of this but not of the conversation with the agent, which was a discussion during property viewing. 

The letting agency ran the credit check and rejected his application on basis of undisclosed CCJs. This means now he has not just lost the property and is in need of housing still, but also the letting agent is refusing to return the holding fee.

What can he do? There is no record of the conversation where he disclosed that he had the CCJ (which has been paid but not sure if creditor has informed courts). 

On a moral note it just seems these leech letting agencies are doing anything they can to turn a profit from those of us who already have the least. 

Has the agent since acknowledged the conversation (eg "yes you mentioned the CCJs but still the computer says no so go away")? 

If not, then it's just a matter of he said she said - by your version of events, the CCJs were disclosed. By the agent's version (i'm guessing) there were undisclosed CCJs so the application was rejected. Depends on who the judge decides to believe. 

Also another tack you can try.. how much was the monthly rent going to be? Holding deposits are limited to 1 week rent, so if it exceeded that, then that could be open to Tenancy Fee Act penalties. That could be a useful negotiating tool to get your deposit returned. 

Hannimal

Sadly given it's Bristol £200 is just a week's rent.. it sound like he has lost this money. It is theft, as he absolutely did say he had had this CCJ, I have no doubt about that. Really feel for him, this is a lot of money for him (or anyone). 

canaldumidi

Only other option is name and shame eg local newspaper.

But then there's the risk of libel/defamation of character caim by the agent and you're back to he said/she said...

And before you post: don't name them here without reading the forum rules first!

https://www.moneysavingexpert.com/site/forum-faqs/

Hannimal

Thank you. I think the naming and shaming is up to my friend to do if he fees that is the right thing to do. At the moment it looks like he is just going to accept the financial loss. He has had a really tough year and a part reason for the CCJ was that he was homeless - he was fined several thousand pounds for parking when he was using the car as his home, and the fines went to his old address. He has since paid them. Now he has had a room to stay in for a year and is in a position to rent his own place, just feels so unfair that these agencies take advantage of people like him. Or of anyone.