Tenancy Deposit Compensation levels
Long story short, I was a first time landlord back in 2011 and had a tenant who stayed for 6 years until the end of April. The property was bought for the purpose of renting out and was originally had a wetroom with disabled adaptions such as a shower seat etc. I initially removed these and put a brand new bathroom suite before putting it on the market. The tenant that ended up staying 6 years is disabled and asked me to reinstate the disabled adaptions to the wetroom, because of this significant cost I had a signed agreement with her to hold her deposit for 5 years and if she moved out within 5 years she would forfeit this deposit.
I then forgot to protect the deposit after this 5 year term (I know it should have been protected anyway at the start).
The tenant has now moved out into care and received her full deposit back despite breaching several of the contract clauses relating to damage. Her son (who I suspect is short of money) is taking action to claim compensation for not protecting her deposit and is seeking 3 times the bond (i.e. the maximum).
Because I repaid the deposit in full and the tenant has not suffered any loss whatsoever as a result would this count towards being penalized at the lower end of the scale?
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