What if I have a dispute?
Should a dispute arise about the amount of deposit to be returned, the protecting scheme will involve the Alternative Dispute Resolution (ADR) service. If both landlord and tenant agree to use the ADR to resolve the dispute, they are agreeing to be bound by its decision.
In the case of a custodial scheme, the scheme will continue to hold the amount until the ADR or the courts come to a decision.
In the case of insurance schemes, the landlord must hand over the disputed amount to the scheme for safekeeping until the dispute is resolved. The scheme administrator will be responsible for returning the final amounts to landlord or tenant in accordance with the decision of the ADR or the courts.
If a landlord fails to transfer the disputed amount into the scheme, the scheme will pay the amount due to the tenant decided by the ADR or the courts and the scheme will proceed to recover the money from the landlord.