MyDeposits have issued new rules which take effect from 6 April 2010.

The Guild of Residential Landlords tenancy agreement and prescribed information designed for MyDeposits has been amended to reflect the new rules.

The main changes are to do with the late protection of a deposit. In particular, landlords and agents should be aware of the following significant change:

C1.1 The following will apply when a Member requests to Protect a Deposit with us.

C1.1.1 The full Deposit stated in the AST must be Protected by the Member within 14 Days of receipt from the Tenant.

C1.1.2 We may allow a Member to Protect a Deposit after 14 Days have elapsed from receipt if the Member provides us with a satisfactory  explanation.We may refuse to Protect a Deposit or charge a late Protection penalty fee to Protect a Deposit later than 14 Days from receipt.

NB1:We may cancel Membership if more than 1 request arises under C1.1.2.

NB2:The DPC states the date that the Member received the Deposit and the date that the Protection commenced. A Tenant may issue Court proceedings against a Memberfor late Protection.We will not be responsible for any loss the Member suffers as a result of such Court proceedings

C1.1.3 We will not Protect a Deposit after 14 Days have elapsed from receipt by the Member in the following circumstances:

C1.1.3.1 The Member is already aware that there will be or is likely to be a Deposit Dispute with the Tenant(s);

C1.1.3.2 The Tenant(s) has initiated Court proceedings for non-Protection of the Deposit;

C1.1.3.3 The Member is only Protecting to obtain a section 21 Order (under the Housing Act) against the Tenant;

C1.1.3.4 The Tenant has already left the Residential Property.

NB:If we subsequently discover that a Member has Protected a Deposit and one of the circumstances in C1.1.3 has occurred then we will invalidate the Protection immediately and we may also cancel the Membership