3.10.7 Authorised Tenancy Deposit Protection Scheme Providers
There are three authorised schemes:
- The Deposit Protection Service (further details from www.depositprotection.com).
- The Dispute Service (further details from www.thedisputeservice.co.uk) and
- Mydeposits, (further details from www.mydeposits.co.uk).
Different membership options are available through the schemes. For example, managing agents may pay a membership fee which then covers that agent for all deposits they receive. Alternatively a landlord with only one or two properties who does not use an agent may be able to pay a flat fee per deposit, and this may be more cost-effective.
Landlords or their agents should familiarise themselves with the rules of their chosen scheme. The rules may direct landlords and agents to include special clauses in their standard tenancy agreements, for example. If tenancy agreements or other documents are not in the form required by the scheme, or if timescales are ignored, the adjudicator may award the full deposit to the tenant by default – whatever the merits of the landlord’s claim.
From 6 April 2017, a local authority may seek information from the schemes in order to facilitate investigations for the purposes of the Housing and Planning Act 2016.