Discovering your deposit isn't protected can be alarming, but tenants have strong legal recourse. The law requires landlords to protect deposits within 30 days and provide proof to tenants. When this doesn't happen, several options are available.
First steps should include requesting written confirmation of protection from your landlord. If they can't provide this, you can check directly with the three approved schemes. Should these searches prove fruitless, you may be entitled to compensation through the courts.
The legal system takes unprotected deposits seriously. Courts can order landlords to either protect the deposit or return it to you, plus pay compensation of one to three times the deposit amount. While legal action might seem daunting, many housing charities and law centers offer free guidance to help you through the process.