Banking Crisis – Statement on behalf of the Tenancy Deposit Scheme |
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21st October 2008
In view of the banking crisis, The Dispute Service Ltd, who runs the Tenancy Deposit Scheme, has issued a statement about the safety of tenants' deposits:
"No one will be surprised in the current climate that a small number of those signed up to the Tenancy Deposit Scheme has found themselves in some financial difficulties. However, compliance with the scheme does require its members to keep deposits in a ring-fenced client account. Should compliance regulations be breached for whatever reason the Tenancy Deposit Scheme still ensures that tenants entitled to the return of all or part of their deposit will receive it.
"Tenants signed up with the agents and landlords who are members of the TDS should not be alarmed. Their deposit monies are safe, and there is no need to contact the scheme during the tenancy. Any issues over the allocation of deposits at the end of tenancies will be dealt with in the normal way.
"90% of the membership of the Tenancy Deposit Scheme is either regulated agents who have client money protection bonding that covers any default or they are sizable corporate landlords with more than sufficient funding to cover the deposits taken. Through The Dispute Service Ltd, TDS is also insured against any failure to submit disputed deposits".
