What happens if I do not protect a deposit?

The tenant can take you to court, and the penalty is between one and three times the deposit, on top of returning it.

The court decides the multiple based on how serious the failure was. Protecting late is better than not protecting at all, but it does not remove the claim, and a tenant can bring one after the tenancy has ended.

Protecting the deposit and failing to serve the prescribed information within the 30 days carries the same risk, which surprises people who thought the money being in a scheme was the whole job.