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Complaints to Ombudsman soar – but why?

19 May 2010
Written by rosalind renshaw

The Property Ombudsman, Christopher Hamer, has revealed a large and unexplained rise in the number of complaints about sales agents in the first three months of this year.

Complaints have shot up 27.5%, compared with the last quarter of last year. Complaints against letting agents have also risen, by 14.7%.

Hamer said there was no obvious reason for the rise and no identifiable trends among new complaints being brought to TPO.

He said: “If the current trend in workload continues throughout the year, my office will end up 48% ahead of forecast, and new sales cases will match those for lettings.

“At this stage I can only monitor the situation and over the coming months I may be able to identify whether it is more than just a sudden peak.”

Hamer also warned, in his first interim report for 2010, that lettings agents who include renewals commissions in their contracts must ensure they are clearly flagged up to landlords.

His warning follows the High Court case involving Foxtons brought by the OFT.

Hamer said: “The effect of the judgment is that such a term is not necessarily unfair but that it must be actively flagged to the consumer.

“As Ombudsman, I have been asked to consider several cases where the renewal commission has been at issue. These pre-dated the judgment that has now been handed down by the Courts and I will now reflect that in any future cases referred to me.

“I still feel it appropriate, however, that where a renewal of a tenancy is being discussed, best practice would dictate that the client is reminded of the liability he will face to pay such a commission fee.”

Comments

  • icon

    RN - "I made the comment because I am so tired of reading these pointless posts especially when I see that they have no basis for discussion, or any level of understanding."
    So, then - you have a problem with posts that bear no relevance to the topic or basis for discusion. So, why then post twice with no relevance to the topic?
    Now look what you've done - you've made ME do it as well! D'oh...!

    • 04 June 2010 12:50 PM
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    While we have always had professional indemnity insurance, the cost of this went up when HIPs were introduced as there was a HIP element added, plus all agents were forced to be part of an ombudsman scheme. We chose the Property Ombudsman mainly due to price and each year at renewal time, they ask to see a copy of our indemnity insurance.

    As a responsible company, we have always kept our nose clean and resent being forced into a scheme, when I feel it is not required. We should be managed in exactly the same way as every other trader in the country, by trading standards.

    Now that HIPs are gone, does this mean we could leave the Property Ombudsman and go back to lower insurance cover?

    • 27 May 2010 00:41 AM
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    "Greed, aggression and jealousy are never far from the surface".

    Oh so true and the agent is always in the firing line when the expectations of buyer or seller are not achieved. Piggy in the middle!

    • 20 May 2010 11:27 AM
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    Here here, completely agree with markymark

    • 19 May 2010 16:22 PM
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    Just highlighting that EAT is becoming less credible as an industry forum, JB being a prime example in this thread. Look at all the news stories on here that attract posts - it's simply people goading for arguements clearly to fill their day. JB clearly has no intention of diplaying a qualified, or indeed substantiated claim regarding this article. Probably has no idea or understanding on the topic, probably not even bothered to be honest....just goading.
    I made the comment because I am so tired of reading these pointless posts especially when I see that they have no basis for discussion, or any level of understanding.

    • 19 May 2010 16:21 PM
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    So RN, what's your point other than pointing out someone elses point is a ridiculous point. Anyway, it's probably because Haart have been upping their leaflet dropping.

    • 19 May 2010 15:55 PM
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    To JB,
    What an absolutely ridiculous point to make - "because of the stupid Deposit System !!!! get rid of that too".
    Er ok!!

    • 19 May 2010 15:00 PM
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    If one misses out on a Property whether For Sale or To Let it really is a big deal, the stress and expense of missing out is bound to lead to disappointment.
    The winner of a contract race is far less likely to complain than the loser.
    One learns a lot about people from selling property. Greed, aggression and jealousy are never far from the surface.

    • 19 May 2010 11:08 AM
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    I completely agree with previous comments. We are members for Sales, but why voluntarily join for lettings? Joining for lettings is like Turkeys voting for Christmas! Either license agents properly or do away with these pseudo legal schemes which do not stand up to court proceedings!!

    • 19 May 2010 10:55 AM
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    "large and unexplained"!
    Mr Hamer should be aware that anything that is totally free to the complainant will be increasingly used as it becomes more known. Basic fact of life.

    • 19 May 2010 10:49 AM
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    If you publicise a complaints procedure and increase the number of people who know about it there should be no surprise concerning the increased uptake?

    • 19 May 2010 10:34 AM
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    If you give people an year, they will moan. That's the nature of people and represenatite of our "on a plate" culture brought about by Nu Labour's quite riduclous vote grabbing welfare policy. It folloews the current trend, no suprises there Mr Hamer, and your non-job.

    • 19 May 2010 09:57 AM
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    Against letting agents: because of teh stupid Deposit System !!!! get rid of that too.

    • 19 May 2010 09:43 AM
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