Deposit At Stake

I had a really crap letter today when I came home from work.  My letting agency have written to say that the finance company they use to hold my deposit for my house is struggling to keep afloat because of the credit crunch and there maybe a risk to me ever getting my money back in the future (1900.00 GBP) and they are trying to rectify it as soon as possible by joining another company before it officially goes bang.

I am really pissed off 

Do you know which one it was? The name, I mean? There are only a few such holding companies, and we've got some money with one.

I am going to rumage for the letter..back in a second...

No mention of their specific company they use..but they do say they are going to try and transfer it to Lloyds TSB.

Does it say what kind of scheme they are signed up to?

Vicky

Well, thanks for looking. And good luck getting it back...

Does it say what kind of scheme they are signed up to?

Vicky

Nope..its as plain and simple as I put it earlier.  I will call them tomorrow and find out what on earth is going on..

This sounds like a crock to me.

Vicky

Super.  Good luck in getting your money back, we will probably be in the same boat.

More worrying today......Their phone lines are constantly engaged    Just dropped them a email..so still awaiting a response.

In the event that something happens to my letting agent.  For example if they fold or cut and run.  Where do I stand with my house?? Am I still legally allowed to live there? and how would I pay any rent??  Worrying about this a lot now 

First of all, the money held in deposit should be safe.  Google the scheme, there are two kinds, one holds it in a sort of escrow account, and the other they retain but there is a form of insurance.  Whichever, they both should be safeguarded.

The letting agent is really immaterial to your right to live in the house.  You have a landlord, and your contract is with the landlord, not the agent.  The agent can do a runner, but you have rights as a tenant that the landlord has to uphold.

Vicky

also, isn't it a legal requirement that the name and address of the landlord is provided to the tenant? It should be on the tenancy agreement so there's at least one way in getting in touch in the event the agency goes under.

That sounds really kind of fishy. Unless they invested the money, shouldn't it be protected in whatever kind of bank account they have it in?

I did think of this.  I am contemplating contact my landlord by letter directly to ask if he would be interested in renting to me privately..rather than through the agent..but again..I am not sure if this violates anything.  The reason I want to do this is because of the following.

When I lived there on my own..before my husband joined me.  I caught the male agent ( who was about 50ish ) peeping through my bedroom windows via my back garden.  He was obviously spying because he went bright red when I asked "can I help you".  I caught him twice in one year!!.  Because I randomly popped home one lunchtime.  Not sure what he was looking for..I am quite quiet..extremely clean and tidy, respectful of the neighbours..no loud telly or parties going on...I put it down to him being a perve.

I also came home from work one occasion to find that my bathroom floor had been replaced with a new one and I had builders in the house all day.  Which is fine..except I was not notified...I had my underwear hanging on the radiators drying.  The builders left loads of dirty mugs from cups of tea and drink that they helped themselves too..and they had locked my cat outside in the pouring rain and there was dust all over my house and muddy clumpy footprints from their workboots  It was more a feeling of being violated really..someone had invaded my personal space and I felt really uneasy for a few nights.

When something needs repairing...It takes so long for them to sort out..that its just easier for me to do and deduct it from the next month rent payment..which leaves me out of pocket for a few weeks.

I have just had enough of them and this just takes the biscuit.  

Would you think it morally right to contact the landlord direct and cut out the agency ??

OK - I have had a emailed response....Told now the letter was sent in error   

cut and pasted below:-

We are a member of the TDS and have been since April 2007 when it has been a mandatory requirement to register all deposits However as your tenancy commenced prior to this date your deposit is not registered and the letter that was sent to you was sent in error.
 
However I can assure you your deposit is not at high risk. All tenant’s deposits are held in a designated Clients Deposit Account, where each individual tenant is protected by the Government Guarantee for up to £50,000 in the unlikely event that the bank should collapse.  Also, as a requirement of our own insurers, we have a separate Client Money Protection policy in place to further protect our tenant’s deposits.
 
I trust this clarifies the position and apologise for any confusion that may have been caused.