The Property Ombudsman has expelled three property businesses from its redress scheme for failing to pay compensation awards, two of them after complaints from landlords.
The scheme's independent Finance, Performance and Compliance Committee reviewed the cases and agreed to exclude the businesses for failing to comply with Ombudsman decisions. The expelled firms are Musgrove & Co, registered as Musco Property Limited, Tothill Residential Surveying Ltd, and Coles Property Management, registered as C.P.M (NW) Limited.
"An Ombudsman award is not optional," said Lesley Horton, chief ombudsman at The Property Ombudsman (pictured).
"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, faced 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, which allowed the tenants to move in and the landlord to receive rental income. Musgrove & Co did not provide evidence the Ombudsman requested during the investigation. The Ombudsman upheld the complaint and directed £300 in compensation.
Coles Property Management
Coles Property Management, based in Blackpool, faced a complaint from a landlord over the management of two rental properties. The complaint followed the termination of the firm's management agreement and the transfer of the properties to a new agent.
The Ombudsman found that Coles Property Management delayed transferring tenants' deposits and forwarding rent for one property, which was mistakenly paid to the business instead of the new agent. It also identified service failings around communication. The Ombudsman directed a £100 award to reflect the inconvenience to the landlord.
Tothill Residential Surveying
Tothill Residential Surveying Ltd, based in Mundon, Essex, faced a complaint from a buyer who had paid £500 for a survey report. The complaint related to the report not being provided and the firm's failure to address the buyer's concerns adequately. Following its review, the Ombudsman directed an award of £800 to the complainant.
The Property Ombudsman's decisions are binding on registered businesses. Where a business does not comply, the case can go through the scheme's compliance process and, where appropriate, to the independent committee to consider expulsion.
