Government Annouces Date for Compulsory Redress Regime
August 28, 2014 |
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Up until now, there hasn’t been a legal obligation for letting agents to have third party redress in order to resolve complaints made by consumers against agents where the two parties are unable to come to an agreement. It has been known for a while that mandatory membership of an authorised redress scheme has been coming, but the Department of Communities and Local Government has now ended the uncertainty of exactly when. October 1, 2014 is the date they have set.
Letting agents and property managers have the choice of three government-authorised redress schemes. They are: The Property Ombudsman, the Property Redress Scheme, and Ombudsman Sevices Property. If any letting agent is found not to be in one of these three schemes, they can be fined up to £5,000 by the local authority. The schemes will have the power to impose monetary compensation of up to £25,000, and instruct agents to correct any mistakes they have made.
It is hoped that compulsory redress will improve standards in the lettings sector by holding letting agents accountable and helping tenants who are left unsatisfied by the service they receive.