myDeposits: How the Custodial and Insured Schemes Work and How to Get Your Money Back

What myDeposits Is

myDeposits is one of three government-approved tenancy deposit protection schemes in England and Wales, alongside TDS and DPS. It is operated by the National Landlord Association (NLA) and Hamilton Fraser, and is particularly well established among letting agents, with many large agency groups using it as their primary scheme.

myDeposits operates both a custodial scheme (myDeposits Custodial, launched in 2015, where funds are held by the scheme) and an insured scheme (myDeposits, the original product, where the landlord or agent holds the deposit and pays a protection fee).

The Two Products

**myDeposits Insured** is the original and more widely used product among professional landlords and letting agents. The landlord or agent holds the deposit for the duration of the tenancy. They pay a protection fee to myDeposits in exchange for the deposit being registered and protected. At the end of the tenancy, if there is no dispute, the landlord or agent returns the deposit directly to the tenant.

**myDeposits Custodial** works on a similar basis to DPS Custodial — the deposit is transferred to myDeposits and held there until the tenancy ends. It is free to landlords. The deposit is returned by myDeposits directly to the tenant or landlord as appropriate at the end of the tenancy.

The Prescribed Information Requirement

Within 30 days of receiving a deposit, landlords must protect it and provide the tenant with prescribed information — a set of specified details including the scheme being used, how to contact them, and the dispute resolution process. Failure to provide prescribed information on time exposes the landlord to a court order requiring return of the deposit plus a penalty of one to three times the deposit amount, even if the deposit itself was protected.

Tenants who believe prescribed information was not provided within 30 days of paying the deposit (or within 30 days of a new tenancy or deposit variation) should check the myDeposits portal and, if needed, take legal advice.

How to Check Your Deposit Is Protected

Go to mydeposits.co.uk and use the deposit checker tool. Enter your deposit protection certificate number (provided by your landlord) or check by your details. If your deposit does not appear, contact your landlord first — then take action if they cannot confirm which scheme holds it.

The Dispute Process

myDeposits uses the Alternative Dispute Resolution (ADR) process, operated by Independent Resolution. The process is document-based, free for both parties, and binding.

**Step 1**: At the end of the tenancy, the landlord or agent submits a repayment request specifying the amount they are retaining and why. The tenant has a set period to agree or dispute.

**Step 2**: If the tenant disputes the deductions, the case is referred to ADR. Both parties submit their evidence — inventories, photographs, invoices, correspondence — within a specified deadline (typically 10–14 days from referral).

**Step 3**: An independent adjudicator reviews the evidence and makes a decision on the disputed amount. The decision is communicated to both parties.

**Step 4**: For insured deposits, the landlord must then pay the amount awarded to the tenant within the specified timeframe. If they fail to do so, myDeposits will pay from the insurance fund and pursue the landlord separately.

Evidence That Makes or Breaks a Case

The adjudicator's decision is based entirely on submitted documentary evidence. The most important evidence is:

• **A detailed, signed inventory with photographs**: Without this, a landlord cannot prove the condition of the property at the start of the tenancy, making it very difficult to attribute damage to the tenant.
• **A check-out report**: A condition record at the end of the tenancy for comparison with the inventory.
• **Invoices**: For cleaning, repairs, or replacements claimed, actual invoices carry far more weight than estimates.
• **Rent payment records**: If rent arrears are claimed, bank statements or receipts demonstrating what was paid are essential.

Letting Agent Obligations

Where a letting agent managed the tenancy and holds the deposit under myDeposits, they are jointly liable for protecting the deposit and providing prescribed information. If an agent fails to protect a deposit or disputes the outcome of a claim, tenants can escalate complaints through the agent's redress scheme (TPO or PRS) as well as through myDeposits.