HI all - thank you for helping!
We went to court against our landlord's claims and lost for a judgment of about £6600 (rounding to the nearest £ for easier math). Our deposit was £3,700 which we said she could keep and immediately transferred her the balance of the judgment the day after the hearing.
Our lease states: any deductions in the deposit must be proposed in writing - none were sent and we are due the full amount in return which can be used against the judgement.
She also admits that she did not make any deductions. We always admitted to her that we owed some money, however attempts to settle before the hearing were rejected. We originally asked the deposit scheme to hold £3,000 of the deposit pending the outcome of the dispute. The landlord says that because we didn't dispute all of the deposit, she gets to keep the balance £700.
However, we only offered that amount to her to settle the full debt which now after the hearing is £6,600. We have all bank transfer records and even her own emails stating that she did not deduct anything from the deposit but too bad for us. She also confirms that we sent the balance of the judgment immediately.
She seems to be trying to get more money from us to pay for some other fees that she forgot to ask for in the hearing but cannot confirm that. All we know are the facts for sure: we have a £3,700 deposit. The landlord did not send any formal deductions to us after we moved nor in the 8 months between move out and the hearing. Additionally, when asked she did not have any claims against the deposit to prove.
We are struggling to get information on how to proceed with requesting cancellation of the CCJ as, per our evidence, we believe the debt has been paid in full. The court said they only rely on the claimants statement, not evidence and if we wanted to take it further, we would have to petition the court however they wouldn't say how or what procedure we need to follow. After some research, it seems that we may be able to submit a general application for an Order to Set the Judgement aside for reason of full payment but I am not 100% sure. The support is rubbish for this situation - only help to collect judgements.
UPDATE: The landlord also agreed to use the deposit towards the judgement