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Does the deposit have to be physically returned ?

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I have a tenant in arrears.

The deposit was unprotected (i.e. not re-protected at renewal due to an admin error)

I offered the tenant the chance to use the deposit against the arrears, we agreed and he signed a letter stating the deposit had been returned. (This was around 2 years ago)

We are in court next week for a possession hearing.

Any advice ?

Thanks

Mick

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