Council Guarantee Bonds are useless

by Readers Question

12:26 PM, 8th December 2014
About 4 years ago

Council Guarantee Bonds are useless

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Council Guarantee Bonds are useless

I let a property out to a tenant who had no deposit but had a guarantee bond provided from the council. Council Guarantee Bonds are useless

This bond covers damage up to a certain amount and contains helpful clauses such as ………..

“The council will use all reasonable endeavours to ensure that the tenant is fully advised of her responsibilities as a tenant. The Council is committed to work towards resolving any difficulties between the Landlord and tenant by negotiation where possible and may assist in matters relating to the tenancy if the Landlord so requests.”

As an extra protection I added an extra clause to the tenancy agreement where the tenant authorised information sharing with the Landlord and did NOT want the Data Protection Act (DPA) applied.

Then one day the council stopped paying her Housing Benefit to me so I phoned them up and they told me they can’t discuss anything because of the Data Protection Act! Hang on a mo I said, luckily for me I’ve got one of your bond thingies and an authorisation to discuss from my tenant.

I sent them their bond and the tenancy agreement opting out of the DPA and was referred through various different department and officers but they all are still just blindly quoting the DPA and refusing to discuss anything or help me at all.

A couple of weeks later the tenant is just plainly avoiding me, arrears are mounting up (past the bonded amount) and S21 and S8 notices are now served but the council still refuse to speak to me.

Can they do this?

Can all the their helpful promises in their bond all be cancelled out just by the Data Protection Act?

Thanks for reading.

Regards

Ronanch



Comments

Mark Alexander

12:32 PM, 8th December 2014
About 4 years ago

Hi Ronanch

My understanding of law is your clause waiving statutory rights would fall foul of the Unfair Terms in Consumer Contract Regulations.

I have never had much faith in bonds offered by the Councils, hence I have no experience of using or claiming on them.

Left wing controlled Councils are notoriously anti-landlord from what I've read and discussed with other landlords.

Seems you may have learned an expensive lesson in politics!

I do hope you manage to get it sorted quickly though. I recommend professional help for the eviction as it usually ends up saving time, money and stress.

See >>> http://www.property118.com/tenant-eviction/
.

Landlord Geoff

13:34 PM, 8th December 2014
About 4 years ago

I replied on another thread (last week I think) that I would not touch these schemes with a bargepole.
Sorry to say that this OP strengthens that view, so I hope the guy took my advice.

Geoff
**Website link removed by moderator**

Mark Alexander

13:55 PM, 8th December 2014
About 4 years ago

Reply to the comment left by "Landlord Geoff" at "08/12/2014 - 13:34":

Hi Geoff

Great website but self promotional links at the bottom of posts fall outside our House Rules I'm afraid - please see >>> http://www.property118.com/house-rules-business-sponsorship/
.

Alan Loughlin

14:08 PM, 8th December 2014
About 4 years ago

as I have repeatedly said, avoid HB, and anything to do with local councils, they see us as the enemy.

Roanch 21

14:23 PM, 8th December 2014
About 4 years ago

Thanks for the comments so far.

Mark - are you saying that you don't think it is possible to opt out of the Data Protection?

I do agree with you all saying avoid council tenants, but this tenant has been there for several years (before I knew how hostile councils are to Landlords). Unfortunately I'm where I am now. And I'm angry because I've been duped, I have an agreement that entitles me to help of some sort and I'm not getting it. And I pay council tax to these idiots just so they can do this to me.

I also thought that something described as a base rate tracker mortgage in big bold letters on the front would errr be a mortgage that tracked the base rate.

Don't trust anyone

Mark Alexander

14:31 PM, 8th December 2014
About 4 years ago

Reply to the comment left by "Roanch 21" at "08/12/2014 - 14:23":

Hi Ronach

No that's not what I am saying, but I am saying that it is an unenforceable condition in an AST due to Unfair Terms in Consumer Contract Regulations "UTCCR" - see >>> https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/284440/oft356.pdf

Any permission from the tenant to the Council giving them permission to openly discuss benefits would need to be a completely separate document.

With regards to tracker rate contracts, the law will be tested on 21st January 2015.
.

Alan Loughlin

14:35 PM, 8th December 2014
About 4 years ago

sad but true.

Jan Martin

15:19 PM, 8th December 2014
About 4 years ago

I do have to be fair and speak as I find . I am living in Swansea and I have used the Swansea Bond Board in the past and have found them to be most helpful and they have paid me any monies owing very quickly . Perhaps it depends on areas .

Jamie M

16:06 PM, 8th December 2014
About 4 years ago

Take the council to the county court for full refund of missing rents and the bond, they will very likely ignore you (the enemy, free enterprise versus marxism) until the court date when that will probably pay up in full.

I had exactly the same issues with Leeds council and on the third occasion took them to CC and they paid the week of the court date.

Make sure you have all your facts in writing, all phone calls etc and their solicitors may bullshit you, but keep at them and if necessary turn up in court. They will be ill prepared and have no answer. Good luck, they are almost all despicable hateful useless morons

john henderson

16:19 PM, 8th December 2014
About 4 years ago

1) Your clause is probably useless, but you can still get to speak about a tenants HB if you get them to sign a letter saying they are happy for you to speak about their claim with the council. I have a standard worded letter which i use and i never have a problem. I get the tenant to sign two copies. One which they send in with the HB pack and the other for me.

I never have an issue. In your case this should have been done at the start, so you are unlikely to get the tenant to sign now.

2) If the tenant is more than 8 weeks in arrears you can have HB redirected to you. So write to the council stating how far they are in arrears.

3) i have used the Leeds council bond scheme and have had a good experience with it. I got a full one months rent pay out for my tenant and the council worked quite closely with me as the tenant had complex issues and was housed originally by the social services.

4) HB tenants are a particular type of tenant. You just need to be well versed in how to navigate all the ups and downs with them.

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