TDS sent deposit to agent no longer trading?
The Letting agent I used contacted me to inform me he was selling his business to another letting agent. He asked me what I wanted to do with the deposits being held in his TDS account.
I emailed him to let him know I wanted the deposit to be transferred to my TDS account. After a few weeks, I hadn’t heard anything from TDS or the agent.
I called TDS and gave them the certificate numbers for the deposits being held and they informed me that they had transferred the deposit money to the agent’s bank account. I have been unable to contact the agents as they are no longer trading, they ceased trading in November of last year I have since learnt.
I have contacted the company who purchased his business and they have asked him to contact me. What I find incredible is that TDS who are meant to be the custodians of my tenant’s deposit money have sent the money to the Letting agent when it should have been just transferred to my TDS account.
I have been carrying out some investigations and have found that the owner was a sole trader and he is a homeowner, currently on the market with a local agent, not yet sold. It does give me some comfort knowing this.
John
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Member Since February 2011 - Comments: 3452 - Articles: 286
9:31 AM, 14th April 2025, About 12 months ago
Hi John,
Was the agent a member of a redress scheme or had client money protection insurance?
Letting agents must by law belong to one of these government-approved redress schemes:
The Property Ombudsman (TPO)
Handles disputes between landlords/tenants and agents.
Offers binding resolutions.
Property Redress Scheme (PRS)
An alternative to TPO, also approved by the government.
Offers similar dispute resolution services.
Client Money Protection (CMP) Schemes
Agents handling client money must belong to a CMP scheme. The main ones are:
Propertymark Client Money Protection
Client Money Protect
Money Shield
UKALA Client Money Protection
These schemes protect landlord and tenant funds if the agent goes bust or misappropriates the money.
Professional Membership Bodies
While not mandatory, many reputable agents join these for credibility and guidance:
ARLA Propertymark (Association of Residential Letting Agents)
Offers qualifications, a code of conduct, and ongoing training.
UKALA (UK Association of Letting Agents)
Focuses on compliance and standards for smaller and independent agents.
RICS (Royal Institution of Chartered Surveyors)
Higher-level professional body, especially for surveyors, valuers, and high-end estate management.
Safeagent
Focuses on promoting accredited agents who follow strict client money protection and operational standards.
Additional Legal Requirements
Agents must comply with AML (Anti-Money Laundering) rules if they handle rental income over certain thresholds.
Agents must follow Consumer Protection from Unfair Trading Regulations.
Since October 1, 2014, they must display their fees, redress scheme membership, and CMP membership clearly (Consumer Rights Act 2015).
Member Since December 2021 - Comments: 9
10:31 AM, 14th April 2025, About 12 months ago
From his website which is still available to view he was a member of DPS however the deposits were being held with TDS. I cannot see any other accreditations or professional bodies that he is a member of. I have contacted the Police and they have referred me to the National Action Fraud Line, I have submitted a report to them. I have no confidence in the so called government back TDS they have effectively lost four of my tenants deposits.
Member Since August 2016 - Comments: 508
11:43 AM, 14th April 2025, About 12 months ago
See your Solicitor NOW!
Judgment for money owing, Charge on property being sold? Can’t be sold without discharging your debt charge.
Member Since June 2019 - Comments: 761
1:55 PM, 14th April 2025, About 12 months ago
Police passing the buck as usual. You will get one or two ‘we are investigating’ emails followed by a ‘not enough evidence to prosecute’ in about a years time – probably all automated.
Member Since October 2020 - Comments: 1134
5:31 PM, 14th April 2025, About 12 months ago
Are you sure that TDS transferred any money? Agents usually use insured deposit schemes, which would mean they already held the deposits in their account.
Member Since September 2022 - Comments: 192
1:19 PM, 19th April 2025, About 12 months ago
I am sorry as this advice is no help to you right now.
However we have always used MyDeposits insured scheme
We keep the deposits and pay a small fee to register the Tenants deposit
Discount if a member of nrla
Member Since October 2020 - Comments: 197
12:13 AM, 23rd April 2025, About 12 months ago
In the chaos of the agent’s last few days, your message got lost/forgotten & the deposit was likely handled the same way as a whole bunch of others. Did you explain the issue to the agent who took over? They might be holding it in an insurance backed scheme. Like you, I don’t see how TDS would transfer it anywhere without the tenant’s approval. Have you asked the tenant what correspondence they received about a transfer to a different scheme? So the tenant likely agreed to something, what that was could be a good clue.