Custodial scheme rules - tenancy deposit protection

The scheme rules for custodial with mydeposits, including important information and definitions are available to view here.

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Contents

• Section A: Using the scheme
• Section B: Breach of membership
• Section C: Protecting and managing deposit
• Section D: Resolution
• Section E: General conditions
• Section F: Complaints

Section A – Using the scheme

All landlords and agents can use mydeposits custodial. The landlord or agent must have registered as a mydeposits member correctly and selected to use the custodial scheme.

Landlord members are expected to:

• own the residential property relating to the tenant’s deposit
• be named on the tenancy agreement as landlord
• have full authority to deal with all aspects of the deposit protection

An agent will:

• protect any tenancy deposits taken on behalf of their landlord clients
• have agreed with the landlord client that they will deal with the deposit protection

For the purposes of these scheme rules we define the owning of the property as a freehold, leasehold or commonhold estate interest, whether sole or joint where that interest is registered at the land registry and was not for less than seven years when entered into. As the deposit is being lodged with us during the tenancy we will not check the ownership position and we will also accept deposit protections on any type of tenancy. It is for the member to decide whether they have a legal responsibility to protect the deposit.

The member is required to keep all their contact details updated at all times. We operate a one-time mobile passcode (OTP) or an email magic link process for logging into member accounts and undertaking specific actions. The member must have an up to date mobile number and/or email address registered with their account for this purpose.

Section B – Breach of membership

If a member does not comply with our scheme rules or conditions of resolution, then we reserve the right to investigate any breaches which may result in you being unable to protect deposits with us.

Section C – Protecting and managing deposits

Members using mydeposits custodial to protect residential tenancy deposits must:

• register the tenancy
• lodge the deposit with the scheme and
• serve the prescribed information to the tenant

C1 – Setting up the tenancy

The member must provide all the information we request to properly register the tenancy including the correct contact details for the tenant(s).
For a joint tenancy, the landlord will:

• only require one deposit protection
• need to nominate a lead tenant who will understand that they represent the interests of all the other tenants in relation to the deposit protection. The other tenants will have read only access to the deposit protection but a new lead tenant can be nominated by the lead tenant

A member can change the tenancy details at any point before lodging the deposit with us.

C2 – Lodging the deposit

Deposits can:
• only be lodged for tenancies set up in their account
• be paid in instalments but only the cleared funds received by the scheme will be confirmed as protected
• paid by debit card, bank transfer or cheque. The member must follow all instructions in their member account about how to lodge the money

We will confirm to the member that the deposit is protected once we receive cleared funds and they are allocated to a tenancy, either automatically or manually by the member.

C3 – Confirming protection of the deposit to the tenant

We provide the member with a prescribed information certificate and an information for tenants leaflet when each deposit is protected. The certificate is pre-populated with the information provided by the member during the protection process. It is the member’s responsibility to make sure each section of the certificate is fully completed and the tenant has had an opportunity to review and sign the document.

A deposit will be correctly protected once the member sends the prescribed information to the tenant which includes the scheme’s information for tenant’s leaflet, in the relevant time.

This is the member’s responsibility and there maybe penalties and sanctions for not doing so under the relevant tenancy deposit protection legislation.

The member can either use the prescribed information certificate created by us or use their own document. In both cases we take no responsibility for the accuracy and extent of the information in these documents.

Using the contact details provided by the member we will also confirm to the tenant that:
• we have received their deposit
• advise the tenant how to set up their own account to manage their personal details and
• view their deposit protection status

C4 – Releasing the deposit

Both the member and the (lead) tenant must observe the timescales involved in the release process and follow our instructions. We will only process a release request if the deposit amount has been received in cleared funds. If a release request is made before the tenancy end date, recorded when the deposit was first protected with us, we may request
evidence that the tenancy has actually ended.

We will not release any deposit that has been held by the scheme for less than 14 calendar days:

• unless we receive a written request with full details of the reasons
• we reserve the right to refuse a release request at this time if we are not satisfied with the reasons provided

Either the member or tenant can start the release process. If the tenant starts the release they request the full amount of the deposit back. The member can then respond (or
if the member starts the release process) they either agree to the full release or suggest settlements at which point they can provide their evidence straight away.

A ‘settlement’ is a suggested deduction from the deposit which the member wishes to make. The tenant can either agree to the settlements or suggest their own position on each settlement. The parties can use the release process to negotiate the return of the deposit or at any point after the second round of settlement attempts, either party can
move the case forward to resolution.

C5 – Single release process

If a party does not respond to an initial release request then the other party can use the single release process. This requires that party to give us a signed statutory declaration. The other party is then provided with a copy of the statutory declaration and has 14 days to respond to us or the deposit is released in line with the statutory declaration.

If after a release has started and the party does not send us a statutory declaration despite being able to, we will move the case to resolution so we can actively help the parties resolve the deposit release.

C6 – Transferring a deposit

If you wish to transfer a deposit protection from:

• one mydeposits account to another – contact us with all the details. We will check the request and if we are happy, we will arrange the transfer
• mydeposits to another tenancy deposit protection scheme – contact us in writing with the request and tell us which scheme you wish to move to and we will arrange the transfer with that scheme for you. This process is mirrored if you wish to move your deposits from another scheme to us

Section D – Resolution

Members and tenants are encouraged to negotiate the amount of the deposit to be released at the end of the tenancy. If the parties are unable to agree with the release settlements the case can proceed to resolution. We provide a free resolution service for a decision to be made on how the deposit should be released.

The parties can choose whether to use our resolution service or resolve the case through the courts. Both parties must agree to use our resolution process. If a party wishes to use the courts then they must inform us and we will not then release the deposit until we receive a court order instructing us to do so.

If our service is used, then the parties provide their evidence to us. Our resolution team will consider the evidence before discussing the case with both parties and look to reach an agreed resolution outcome. If the case requires a decision it may be referred to a qualified adjudicator.

We have a separate document entitled the conditions of resolution which sets out exactly how we deal with cases including acceptance, process and the resolution. Both parties must confirm acceptance of these conditions of resolution for us to resolve the case using our resolution service.

Our website provides more information on the type of evidence a case assessor and adjudicator will expect to receive which can support either party’s proposed deposit settlement.

Tenants are informed of the procedures and timescales for the deposit release and resolution at the time the deposit is protected and when a release application is made. The member should check that we have up to date contact details for the (lead) tenant at the end of tenancy. Where the contact details are incorrect, incomplete or missing the member must demonstrate the information they provided us is accurate, to the best of their knowledge.

Section E – General conditions

1. The ‘initial requirements’ of the mydeposits custodial scheme are for the member to register a tenancy, lodge the correct deposit amount in cleared funds and once we have confirmed the protection, provide the tenant with the prescribed information.
2. These scheme rules, the conditions of resolution and supporting scheme documentation will need to be updated from time to time. Notices of any changes will be posted on our website, in newsletters and/or by direct mail to you. The member must use the most current scheme forms and we will not be responsible for any consequences of a member or tenant not using the latest versions.
3. The member agrees to abide by the latest version of the scheme rules notwithstanding any earlier version which was in force when the deposit was protected.
4. We may delay action or carry out investigations if we have any concerns about a member’s compliance with these Scheme rules, their identity, fraud, solvency or any money laundering including sharing data with other authorised tenancy deposit protection schemes or government agencies.
5. We cannot be held responsible for intervening events beyond our control which prevent, delay or impede our
   ability to operate the scheme or these scheme rules. This includes (not exclusively) events such as fire, flooding, strike or terrorism.
6. These scheme rules are governed by and shall be interpreted in line with the laws of England and Wales.
7. Our previous adjudication decisions will not set a precedent or authority for deciding any following decision. Each resolution case is heard on its own individual merits and supporting evidence provided by both parties.
8. Any scheme notes or information posted on the website to help and notify members, the tenants or parties involved with the scheme is intended as general help and guidance. It is non- specific and does not override the requirements of any relevant act, regulations or other related statutory instruments.
9. Any claim that a member may have against us is limited to the protected deposit amount plus interest at two percent above HSBC base rate from the date of the liability being proven against us.
10. There are no fees payable by members to protect deposits with mydeposits custodial.
11. Time is to be strictly interpreted and observed during all prescribed periods. The scheme may allow additional time only if suitable evidence and reasons are given for the cause of delay. If a statutory time regulation gives no flexibility then we are unable to allow any leniency.
12. If the scheme makes an incorrect payment to any party following an administrative error, then that party is required to immediately return the amount following our request. If the amount is not repaid in line with a request, it is likely to result in legal proceedings being started to retrieve the outstanding amount.

Section F – Complaints

Our aim is to provide a quality service, but we recognise that there may be situations where you feel we have not provided the quality of service expected, which you would like to bring to our attention.

Who can our complaints team assist?

We are not able to help with any complaint raised against a landlord or agent. If you want to discuss your concerns regarding a landlord/agent with us, then please contact our customer services team using our contact information found on our support page.

Our complaints team can only attempt to assist you when contacted for one of the following:
• the service or experience you received from our team directly after you have followed and completed that departments escalation process
• highlighting an error found in the resolution outcome you received from us

We are only able to deal with a complaint we receive from a landlord/agent or the lead tenant who is shown on the protection certificate when sent to us using the confirmed email address shown on their account.

If you are a landlord and have used an agent to protect a deposit then you will need to raise your complaint with that agent directly, they can then contact us on your behalf should they feel it is necessary.

What is the complaints process?

A complaint can be raised within three months of the resolution outcome being issued to you. We will not be able to assist with any complaint raised after this time.

Once we have received your complaint:
• you will receive an acknowledgment from us
• we aim to respond within five working days where your complaint relates to the service we have provided
• we aim to respond within 20 working days where your complaint relates to a resolution outcome. This process cannot be used to appeal a decision unless there is an error in fact or law based on the evidence that was provided at that time

When we have completed a full investigation and provided you with our final response, we reserve the right to close your complaint and not enter any further communication.

How can you raise your complaint?

Complaints about our service:

If your complaint relates to service you received from a member of our mydeposits team then please download and complete our service complaint form.

You can raise a complaint by logging into your online portal once a resolution outcome has been issued. The option to raise a complaint will appear at the top of the ‘Release Request’ tab for the relevant tenancy.

You can also download and complete our adjudication complaint form. Please email your completed complaint form to us at complaints@mydeposits.co.uk using your registered email address shown on your mydeposits account. Please remember to include our reference in the email subject line.

Please note that our response timeframe will only start once we have received your complaint form.

mydeposits is not regulated by the Financial Conduct Authority (FCA). The Department for Levelling Up, Housing & Communities (DLUHC) have responsibility for monitoring the Tenancy Deposit Protection Schemes but do not have a role in individual cases or complaints