Why issue Prescribed Information / Failed to comply?

The law changed 5th April 2012, where you fail to provide the required information within 30 days you MUST return the Deposit and should the matter proceed to court pay the Tenant a penalty of no more than three times the Deposit Value. The Tenant is entitled to seek compensation for up to 6 years after the Tenancy has ended.

The PRESCRIBED INFORMATION ORDER 2007 No. 797 defines exactly the information that the Landlord is required to supply their Tenant with regards to any monies that have been given in respect of a deposit.

Many people perceive that the prescribed information is provided by the Deposit Protection Schemes, this is not the case. The DPS clearly state in their T&Cs clause 2D that "The DPS cannot provide the Prescribed Information on behalf of Landlords"

Mydeposits states mydeposits cannot assist here with reference to "(vi) the circumstances when all or part of the deposit may be retained by the landlord, by reference to the terms of the tenancy;"

The terms and conditions under which the Deposit will not be returned are referenced to the Tenancy agreement in the prescribed information. Defining such terms means disputes have a better chance of being resolved in the Landlords' favour.

Provided the Prescribed information is issued within 30 days:

The Tenant cannot block nor the courts deny a Landlords claim for guaranteed possession of their property.
The Tenant cannot demand the Landlord pay 3 times the value of the Deposit as tax free compensation. The former legal defence Draycott v Hannells ceases to apply

If you do not issue the prescribed information, the Tenant can sue you, you cannot claim possession of your property and you reduce your chances of making a claim against the deposit for losses you may suffer.