Three agencies have been expelled from an independent redress scheme after failing to pay compensation awards.
The Property Ombudsman expulsions involve Musgrove & Co, registered as Musco Property Limited, Tothill Residential Surveying Ltd and Coles Property Management, registered as C.P.M (NW) Limited.
Chief Ombudsman Lesley Horton says: “An Ombudsman award is not optional. When a complaint is upheld and compensation is directed, registered businesses are expected to comply with that decision.
“Expulsion is always a last resort. We work with businesses throughout the compliance process to help them meet their obligations and ensure consumers receive the awards they are due.
“That only three businesses reached the point of expulsion this quarter demonstrates how rarely that ultimate sanction is required from The Property Ombudsman. Most businesses engage with the process, comply with our decisions and pay awards without matters having to reach this stage.
“But consumers must be able to trust that redress has real meaning. Where a business ultimately fails to comply, we will take appropriate action to protect consumers and maintain confidence in the scheme.”
Musgrove & Co
Musgrove & Co, based in North Walsham, Norfolk, was the subject of a complaint from a landlord about the handling of a residential tenancy.
The complaint covered the agent’s refusal to transfer a holding deposit to the landlord, a tenancy agreement that contained errors with no suitable replacement provided and the firm’s failure to respond to the formal complaint.
The landlord later contacted the tenants directly and arranged the tenancy, allowing them to move into the property and enabling the landlord to receive rental income.
Musgrove & Co did not provide evidence requested by the Ombudsman during the investigation. The complaint was upheld and an award of £300 was directed in compensation.
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Tothill Residential Surveying
Tothill Residential Surveying Ltd, trading as Tothill Residential Surveying and based in Mundon, Essex, was the subject of a complaint from a buyer who had paid £500 for a survey report.
The complaint related to the survey report not being provided and the agent’s failures to dealing adequately with the complainant’s concerns.
Following its review, the Ombudsman directed an award of £800 to the complainant.
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Coles Property Management
Coles Property Management, registered as C.P.M (NW) Limited and based in Blackpool, was the subject of a complaint from a landlord concerning the management of two rental properties.
The complaint followed the termination of the firm’s management agreement and the transfer of responsibility for the properties to a new agent.
The Ombudsman found that there had been delays by Coles Property Management in transferring tenants’ deposits and forwarding rent for one property which was mistakenly paid to the business instead of the new agent. The Ombudsman also identified service failings around communication.
A £100 award was directed to reflect the inconvenience to the landlord.
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The Property Ombudsman’s decisions are binding on registered businesses. Where a business does not comply, the case can be referred through the scheme’s compliance process and, where appropriate, to the independent committee for consideration of expulsion.
The latest cases underline the importance of businesses engaging with complaints, cooperating with investigations and paying awards when directed.
