Homelet PMS Ltd, a letting agent operating, has paid a £15,000 civil penalty for failing to comply with legal requirements to protect clients’ money.
Action was taken under Regulation 3 of the Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) Regulations 2019, which require all letting agents in England who handle client money to belong to an approved Client Money Protection (CMP) scheme.
Back in January 2023, a routine inspection found that Homelet PMS Ltd was not a member of a CMP scheme.
Medway council officers provided advice and guidance to support the business in achieving compliance.
An individual also came forward with evidence that their money was being held, whilst the agent did not hold Client Money Protection.
Following unsuccessful attempts to secure compliance, a formal warning letter was issued in May 2024.
In September 2024, a Notice of Intent was issued for a £15,000 financial penalty, and no response was received.
A Final Notice confirming the penalty was issued in November 2024.
As the penalty remained unpaid, the council began the process of civil debt recovery.
The outstanding amount was paid in full in this year before further action was required.
A Medway council spokesperson says: “These rules are in place for a reason – to protect tenants and landlords in case something goes wrong.
“I would like to thank the officers involved for their persistence, and hope this serves as a warning to other businesses that we will take action when they fail to meet their legal obligations.”
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