Can I get back my holding deposit?

Kimy1996

Hello,
With a friend we made an offer to rent a flat which was accepted except that my friend failed the affordability check because her bank is a French Revolut account. So she was not able to connect to open banking and give access to her bank statements and prove her income. We tried everything, she offered to send payslip, employment contract, letter from employer even to come and show them her bank account face to face. They didn't want to know anything. 

Following this, the agency offered us to pay 6 months' rent upfront and then the last 6 months at once but for a 2 bed flat it's a huge amount of money and we find it risky to give them so much money at once. she doesn't know anyone who could act as a guarantor. the agency refuses to return the deposit to us they said "The income declared has not been verified and therefore does not match the amount we were expecting, so this payment will not be refunded on the basis that the offer was only accepted subject to referencing, which did not pass". According to the shelter they have no legal reason to keep the deposit given that no inaccurate information was provided. They should have let us know that all applicants must have a uk bank account. I already complained to their property redress scheme who opened a case. But things are so slow. Do you think we have a chance to see our holding deposit back.

theartfullodger

Sorry to read.

What exactly did the terms for the deposit state, please?

Do you mean the letting agent redress scheme and does it cover non-tenants (eg applicants?).

iirc the scheme requires anyone to go through agent's complaints process first before entering redress scheme process. 

Good luck.

Kimy1996

Thank you,
These are the terme : If the Tenant withdraws from the agreement, or requests material changes to its terms following the agreement, they will not be entitled to have their Holding Deposit refunded and could be liable for other contractual remedies and/or associated costs. Additionally, Home Made reserves the right to retain the Holding Deposit:

• where a Tenant provides false or misleading information which Home Made can reasonably consider when deciding to let a property - this can include a Tenant's behaviour in providing false or misleading information
• where a Tenant fails a right to rent check
• where a Tenant withdraws from a property
• where a Tenant fails to take all reasonable steps to enter into a tenancy agreement and the Landlord or Home Made takes all reasonable steps to do so

There is nothing about the affordability check (I guess the deposit should be returned if no false information was provided) I complained to their property redress scheme according to citizens advice bureau so I guess it’s applicable for non-tenant. They don’t have a complaint form to file on their website but I exchange with them several emails about the issue. I reported them to Property Redress Scheme after they gave their final decision (no refund).

thanks 

anselld

Hopefully the holding deposit did not exceed 1 week of rent, in which case it is hopefully not going to break the bank to wait for the redress scheme to conclude.

Kimy1996

No it was 1 week of rent 

theartfullodger

I think you are entitled to holding deposit return.  Write a calm polite letter demanding it ,noting that if not returned you will take court action etc etc.

Artful, landlord since 2000

Bunch of cheating cowboys...

RHemmings

theartfullodger said:

I think you are entitled to holding deposit return.  Write a calm polite letter demanding it ,noting that if not returned you will take court action etc etc.

Bunch of cheating cowboys...

I have to agree with both parts of that. The situation clearly does not come under any of the grounds for retaining the deposit in their T&Cs. 

_Penny_Dreadful

Me three, I also am in agreement with Artful and RHemmings.  Raising a dispute with the Property Redress Scheme, if that's the redress scheme the letting agent is registered with, was absolutely the right next step.  I hope the redress scheme orders the Home Made to refund your holding deposit in full and gives them a smacked bottom.