Can deposit be protected instead of returned late? Can tenant claim penalty after 6 years?

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  • I am taking over a property that was let in January 2010 [12 months AST].
  • Deposit taken by landlord but not protected!

This falls into the category of “Deposits taken from April 6th 2007 - April 5th 2012”
In your Deposit guide https://www.rla.org.uk/landlord/guides/deposit-protection-from-2015.shtml you note that “As the deposit were still unprotected by May 6th 2012 then the landlord is open to the financial penalties and is not able to serve a Section 21 notice until the deposit is returned.”
  1. I understand that instead of returning the deposit, we could also have the tenant agree [and sign] that we can use the deposit amount towards reducing the arrears (presumably this in affect, just another way of returning the deposit).
  2. Instead of returning the deposit, is there any reason why the deposit cannot be protected – even now at this late stage – and would any s21 subsequently served now be valid?
    • In your guide (hyperlinked above) you allow this for Deposits on tenancies that went periodic before April 6th 2007. The only difference in our case may be if the landlord is open to the financial penalties.
  3. Regarding the financial penalties, as you note that Tenants are bound by the statutory limit, and as it is now more than 6 years, am I correct that a financial penalty cannot be claimed – as you have written clearly at the end of your guide “This means that tenants have 6 years and 30 days from the receipt of the deposit in which to chase the landlord for the financial penalty.”
29/05/2018 15:11

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