From the 6th April 2007, the government authorised certain companies to act as custodians of a tenant’s security deposit for the length of the tenancy.  

When a landlord or agent takes receipts of tenant’s financial deposits it must be passed to a custodian company within 14 days, or an insurance policy must be taken out to cover the potential loss of the deposit from the tenant.  The landlord or agent must then inform the tenant of the name of the company holding the deposit.  

How are disputes resolved?

You have 20 days to raise a dispute and then 10 working days to try to reach a resolution, if not you decide if you want to go to court or to have the ICE deal with it, which is what most people prefer.  The ICE will appoint an adjudicator to assist him with a view to issuing adjudication within 15 working days of receiving all the necessary paperwork. The disputed amount will be paid out in accordance with the adjudication within further 10 working days.

What the Tenancy Deposit scheme costs

There is no cost to the tenant.

Benefits:

• The deposit is fully protected and insured.
• The deposit is returned promptly if there is no dispute.
• In the event of a dispute it is quicker and less stressful than going to court.
• The property can be re-let whilst adjudication is taking place.
• There is a guaranteed reimbursement of loss if the dispute is found in the landlord’s favour.
• There is a guaranteed reimbursement of loss if the dispute is found in the tenant’s favour.

Should you wish to find out more about the Dispute Service, please visit www.thedisputeservice.co.uk  or call 0845 226 7837.