Thanks for your enquiry.
I'm glad to say that he is talking absolute rubbish!
now that you have paid the Deposit into a Scheme, it should remain there (and certainly not given back to him).
The law on matters where Deposits have not been paid into a Scheme gives the Courts the power to award compensation to a tenant equalling 3 months Rent IF, at the time it gets to Court, the Deposit has still not been paid into a Scheme.
As you have now done that, albeit a little on the late side, the Tenant now has no right to pursue you through the Court for any compensation.
I hope this answers your question, and if so, I would be grateful if you could leave positive feedback.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).