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Remus2004, Barrister
Category: Property Law
Satisfied Customers: 71140
Experience:  Over 5 years in practice.
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Dear Jo, Hope you are having a good week. I have sent an

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Dear Jo, Hope you are having a good week. I have sent an email yesterday below after my tenants reminded me again of my duty to compensate them. Their email response received today will follow in my next message. "Dear All, Thank you for your email. My
below email ("Summary of Our Recent Correspondences") summarised our correspondences after you sent me the letter dated 4th November. I have just checked all my payments to you and realised that there is a payment shortfall of £25 to Otis (I transferred on
21st Oct only £687.13 instead of £712.13 which Otis has confirmed). I have made the payment of £25 to Otis today. I sincerely ***** ***** this error (I may have deducted twice the amount payable to Russell from Otis. Nevertheless, it is an error from my
end without any intention to keep this £25). So all the confirmed amounts (your full deposit minus the agreed costs) have now fully paid. Please see attached. Mike: £559.20. Otis: £712.13 Russell: £724.25 With regard to the late returning of your full deposit,
since I do not received your suggestion of how this penalty is calculated, I have used - the penalty interest on the late payment of rent in our contract 4% above HSBC base lending rate => currently 3.7% plus 4% = 7.7% - Mike: applied on the due amount of
£559.20 to Mike, late payment of 18 days => penalty interest of £2.12. Paid to Mike on 8th Nov - Russell: applied on the due amount of £724.25 to Russell, late payment of 18 days => penalty interest of £2.75. Paid to Russell on 8th Nov - Otis: applied on the
due amount of £712.13 to Otis: late payment of 3 days on £687.13 => penalty interest of £0.43. Paid to Otis on 8th Nov. Late payment of 24 days on the £25 shortfall (from 18th Oct until 10th Nov) => Penalty interest of £0.13. Paid today to Otis Should the
above penalty interest is not satisfactory to you and/or should I have made any error in my calculation, please do let me know how much you want to charge me for this late payment. I reiterate that I will pay the compensation if you could tell me what losses/harshness
or potential losses/harshness I have caused to you to justify your demanded amount of £3,672.51. Without knowing the details of your sufferings I am not in the position to agree to it. Best regards, Quynh"
Customer: replied 2 years ago.
Here is their response to my email. Let me know your view on their letter:
"Dear Quynh,We are not required by law to outline why we have lost out financially as the law is clear. We will, however, outline our reasons in regards ***** ***** law.Firstly, we will bring to your attention the Housing Act 2004, Part 6, Chapter 4 which states:'2)For the purposes of this Chapter a “tenancy deposit scheme” is a scheme which—(a)is made for the purpose of safeguarding tenancy deposits paid in connection with shorthold tenancies and facilitating the resolution of disputes arising in connection with such deposits, and(b)complies with the requirements of Schedule 10.'During the 10 months of you having our deposit we would not be protected by this scheme and therefore part (a) is breached, as our deposit was not safeguarded. This is a clear breach of law and our rights to claim compensation are outlined in the Housing Act 2004, s.214 which we have again provided below for your convenience:214 Proceedings relating to tenancy deposits(1)Where a tenancy deposit has been paid in connection with a shorthold tenancy, the tenant or any relevant person (as defined by section 213(10)) may make an application to a county court on the grounds—(a)that the initial requirements of an authorised scheme (see section 213(4)) have not, or section 213(6)(a) has not, been complied with in relation to the deposit; or(b)that he has been notified by the landlord that a particular authorised scheme applies to the deposit but has been unable to obtain confirmation from the scheme administrator that the deposit is being held in accordance with the scheme.(2)Subsections (3) and (4) apply if on such an application the court—(a)is satisfied that those requirements have not, or section 213(6)(a) has not, been complied with in relation to the deposit, or(b)is not satisfied that the deposit is being held in accordance with an authorised scheme,as the case may be.(3)The court must, as it thinks fit, either—(a)order the person who appears to the court to be holding the deposit to repay it to the applicant, or(b)order that person to pay the deposit into the designated account held by the scheme administrator under an authorised custodial scheme,within the period of 14 days beginning with the date of the making of the order.(4)The court must also order the landlord to pay to the applicant a sum of money equal to three times the amount of the deposit within the period of 14 days beginning with the date of the making of the order.(5)Where any deposit given in connection with a shorthold tenancy could not be lawfully required as a result of section 213(7), the property in question is recoverable from the person holding it by the person by whom it was given as a deposit.(6)In subsection (5) “deposit” has the meaning given by section 213(8).We hope that the information above makes it clear to you the reasons for us seeking compensation and we have nothing further to add on the matter. We are willing to settle this matter out of court, and given that you make additional payment to us to the value of £3,672.51, we all agree to drop the matter irrevocably and consider this matter settled.Yours sincerely,Michael PiersonRussell ClareOtis Parsons
What would you like to know about this please?
Customer: replied 2 years ago.
Hello Jo, thank you for your response
I would like to know
(1) your assessment/view on their letter
(2) how you would respond to it.Thank you very much
Well, I wouldn't have written to them. All you have done is tipped them off.
I think we have covered the relevant issues on your other post really.
It is not actually anything to do with them proving loss as I have explained already.
Having already written to them and received their response I would just write back saying that you do not believe you are liable as you have returned the deposit and invite them to sue if they disagree.
Customer: replied 2 years ago.
Dear Jo,
Thank you for your response. I need to go to Eurostar now, I will write to you when I am in the train to clarify my understanding. Best, Quynh
Customer: replied 2 years ago.
Hello Jo,
I wiuld like to clarify my understanding:
- when you say "tip [email protected], does it mean that I should not have told them so many details about proving losses or what do you mean?
- I feel dissy with all the clauses they mentioned. if they don't have to proof that they have losses, I don't see why I can justify my non-payment of the compensation.Thank you for your help . I am sorry for my silly questions.
Best regards,
No, it just means that they have been given more information than is ideal about your position.
Generally speaking, you don't want to get involved in protracted correspondence with anybody who is involved in straight forward disputes. Every word you write is an opportunity to put your head in the noose.
It is nothing to do with their losses.
It is to do with the fact that you have returned the deposit, it was protected but late and a court is unlikely to order three times the sum for the reasons we discussed.
Customer: replied 2 years ago.
Thank you very much Jo
My hope is that the court would disregard their claim as according to the clauses which they sent, if the court does not dismiss their case, he MUST penalise me up to 3x and min 1x deposit. Ie they will have the victory.
I don't know what will happen if they bring me to the court.
Well, you are running that risk but they they are asking for the full amount anyway so you may as well contest it.
The court won't disregard their claim but, as I have said, the Court does not have to order three times the sum and is unlikely to do so.
Customer: replied 2 years ago.
I agree fully.
But as the clause says that he must penalise me st least 1x , I wonder if he could give me a penal it less than 1x
Customer: replied 2 years ago.
I am not sure if he has to obey these clauses
Please the last paragraph
Customer: replied 2 years ago.
Fingers crossed for me, I hope it works for me. The last sentence sounds promising.
Just FYI: one if the tenants (Mike) stayed in the flat for 2 years and in his 1st year, I filed the deposit within 10 days. So I will respond to the court if I receive his letter that my mistake was a genuine mistake due to the stress of my main job.
I will keep you posted.
Thank you very much for your help today
Have a good evening!
No problem and all the best.
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