Tenant in despair after DPS pays deposit to landlord

Note - the Landlord Law Blog has now moved to www.landlordlawblog.co.uk.

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Most of the complaints I hear about regarding the Deposit Protection Service (DPS) are from landlords. However they are not the only sufferers. Today I received this cri de coeur from Miss C:

"The DPS paid my deposit back to my landlord in July 2009, despite me claiming it back. They claim they wrote to me, but I did not reply to their letter, so they gave the deposit to the landlord.

When I phoned them to find out what was happening to the deposit, they told me it had been paid to the landlord, I stated I had received no communication from them, asked why they had not phoned, they said they are not allowed to. I then asked why they had not e mail me, to see why I had not responded, they said they did not have to.

I have made 3 or 4 complaints to them, and sent a letter to their chief executive, who said they sent me a letter, I asked if he had proof of posting, he said no.

I am now in no mans land, I borrowed the deposit from my parents, so I have no deposit to put down on a new let, where do I go from here?"

Where indeed. There seems to be little comeback in this sort of situation. Miss C tells me

"The whole point is, they say they posted a letter to me, which I did not receive, and because I did not answer it they gave my deposit to the landlord. I asked them what happens if you are on holiday, they never replied. Surely they must be accountable to somebody?"

Does anyone have any suggestions? Have you had a similar experience with the DPS? If so, please leave a comment.