9:15 AM, 21st May 2013, About 8 years ago 4
If you didn’t already know, there are now four Deposit Protection providers in England and Wales and between them they have seven schemes, all with different rules!
The new kids on the block are a corporate giant called Capita, a FTSE 100 company. You may not have heard of them before as they generally service contract for their clients without using their own brand. Did you know that Capita administer TV licencing?
Should the other Tenancy Deposit Protection providers be worried?
Well when it comes to pricing Capita could theoretically crush their competition. A business of that size could probably put the other providers out of business by offering TDP free for a couple of years and then owning the monopoly. Early signs though are that’s not what they will be doing, however, they are putting the pressure on by undercutting their competition enough for it to hurt.
Gareth Kings, managing director of Capita TDP, based in Basingstoke, Hampshire, said: “Building upon our proven track record in both the property and insurance sectors, we hope to bring a fresh approach to deposit protection, providing a simpler, cost-effective solution for protecting tenants’ deposits.” Let’s hope he does just that but only time will tell.
I could save money by moving to Capita but I will not consider moving for at least a year in much the same way as I don’t install new Windows software straight away. Yet another set of TDP scheme rules to learn is not something I relish any more than having just had to learn how to find my way around Windows 8. I will probably wait for the legal eagles to pour over the rules and I will listen to their critique. I will then consider the outcome of the tribunals and no doubt read up on comparisons between the schemes, especially in terms of how many landlords win/lose their cases.
Now don’t get me wrong, I’ve never had a despot dispute so arguably I have nothing to worry about and should go for the cheaper option. Nah, I’ll be sticking with MyDeposits until I hear of a better reason to switch than saving just a few pounds.
What are your thoughts?
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.