Letting agent is expelled from ombudsman scheme
An estate and letting agent has been expelled from The Property Ombudsman scheme.
Buyers, sellers, tenants and landlords are being advised that The Lettings Shop (TLS) in High Street, West Bromwich, has been expelled and does not currently appear to have any professional memberships.
A prospective tenant made a complaint to TPO after she felt pushed into paying £200 cash to secure a rental property and signing an agreement, which the agent then refused to refund when she called the next day to withdraw her interest.
Although the agreement stated ‘non-refundable’, the ombudsman took into account the Competition and Markets Authority’s guidance which states that ‘tenants should not be pressurised into paying money’. The guidance also outlines circumstances in which holding-deposits or pre-tenancy payments like this should be refundable, including if ‘the tenant pulls out of the deal before the relevant costs or disbursements covered by the pre-tenancy payment have actually been incurred by the agent’.
The Ombudsman directed that the £200 fee be refunded as no work had started on the prospective tenant’s behalf as well as awarding a small compensatory award of £50 for the wasted time and distress.
TLS did not cooperate with the ombudsman’s review nor did they pay the award.
The ombudsman has referred the agent to the scheme’s independent compliance committee, which ruled the firm should be expelled from TPO and registration for redress.
Comply
TLS is not currently registered with a redress scheme, which is a requirement of every sales and letting agent in order to trade legally.
Trading Standards have also been informed of the expulsion.
Gerry Fitzjohn, non-executive director and chairman of TPO’s finance and performance committee, said: “As a member of TPO, agents are obliged to comply with awards made by the ombudsman which TSL has failed to do.
"As part of TPO’s role to provide better consumer protection, we feel it is important to raise awareness to cases such as these in the event that TLS attempts to continue trading with landlords and tenants who may be unaware of the company’s position, particularly as they are still advertising properties ‘to let’ via their website.”
Every sales and lettings agent in England is required to register with a government-approved redress scheme, which enables consumers to have their complaint reviewed independently in the event of a dispute arising that the consumer is unable to resolve with the agent directly.
An agreement between the two government-approved redress schemes means TLS will not be able to register for any form of redress until the award is paid.
TPO offers an independent and impartial dispute resolution service to consumers who have been unable to resolve their disputes with a registered agent. The scheme was established in 1990.