Application fee dispute

[safa123]

Hi can anyone help?

 

We viewed a property that we liked and we told the agent that we had adverse credit and an IVA. The agent said that the landlord was flexible and we COULD use a guarantor for this property. We were led to believe that if we failed the credit check (which we thought we would and were honest about) it wouldnt be a problem as we had a guarantor in place.

 

The landlord accepted our offer for the monthly rental price and we went to the office to pay the application fee and fill in the application forms. Upon returning the forms we left the credit page blank so we could ask the agency staff member AGAIN that a guarantor was acceptable for this property. She stated our IVA and adverse credit on the application form, then proceeded to give us a guarantor form for us to fill out quicker upon a failed report coming back. We left the office after paying £180 for the application fee assured that we would be accepted for this property by way of a guarantor.

 

The following week from the initial viewing i received a phone call stating that the report had failed and the landlord is not accepting it. i asked about the guarantor and he said no, not even with a guarantor. He offered to show us some more properties which were not in the same area and quite dismissive about the first property. My partner had gone abroad for a few days at this time and i told the agent i would get back to him.

 

The next day after liaising with my partner i rang the office to complain that i wanted the application fee returned, as i thought the way the guarantor option had been withdrawn was unfair. this was the only reason we paid the money as we knew the credit check would fail. I said that if the landlord was not willing to accept a guarantor they should have told us at the viewing and we would not have gone ahead. She said that the landlord was willing to accept a guarantor at the time but he has now CHANGED HIS MIND and that he has a right to do that as its his property. She also explained that a credit check has three outcomes 1=pass 2=fail recommending a guarantor 3=outright fail. This was NOT explained to me on the day i paid the fee and she admitted that on the phone. She said the only way they give refunds on credit checks is if the landlord withdraws from the deal. i said he HAS by refusing a guarantor after saying that he would accept one at the start, so its his fault it hasnt gone ahead. This is stated in their terms and conditions on the back of their application form, however she didnt photocopy the form double sided so i dont have a copy of that and she didnt show me in the office either. She said that she is not able to issue refunds but she will pass the message on to the manager who will tell me exactly the same thing and refuse anyway.

 

Is there anything i can do about this as i really think this is them twisting the terms to make quick money on a property before they get it let.

 

thanks

[mariner51]

It is LLs prerogative to reject any potential T or G.

It is poss that your G failed nec checks.

Your application fee would cover completed nec checks on you and G plus an element for office admin.

Subject to your separate contract/agreed scale of charges with LA, you are entitled to the difference for work not completed IMO

[safa123]

Thank you for advice,

 

Is the landlord allowed to say he is willing to accept a guarantor for poor credit applicants and then change his mind afterwards. (we never spoke to the landlord and was taking agents word for it, not sure if option was ever there now).

 

Our application fee was to cover the credit checks and the employer references, the only thing that was carried out was the credit check as she said that the employer references were never applied for as the check had failed so there was no need to do anything else. So £180 for an online credit check seems excessive!

 

The guarantor failing the credit check is not possible as we didnt give any details for the guarantor they just gave me the form to take home to fill out upon a failed report coming back. So the landlord was apparently aware of our poor credit and agreed a guarantor at the start but then simply changed his mind. We are starting to think that the agent knew from the off that the LL would not agree to adverse credit or a guarantor but just wanted us to pay the excessive fee knowing it would be easy money for them.

 

I have searched the company on reviewcentre.com and out of 183 reviews only 3% would recommend. There are a lot of complaints about this particular agent, even a very similar case involving more money that occurred in the exact same branch as mine.

 

Are there any regulating bodies for this type of dispute and how do i find out the costs of the search which was carried out and work out what amount of work was not completed in order to request that amount to be refunded. Or all of it if they have been dishonest and fraudulent.

 

Thanks again,

[Surfer01]

I doubt very much if a credit check is anywhere near £180. We dealt in volume and it was less than £5 per person.

[safa123]

Surfer01 - thats what were thinking and they have admitted to not doing anything else apart from that! We only paid it as the agent assured us that with a guarantor we would secure the property. Rent was very good for the area and it was right on my sons schools street. Were thinking now that the agent has not been honest with us about the landlords requirements and from other stories iv read this agent are doing this day in day out!

[Surfer01]

Perhaps you could start with asking for a full breakdown of the charge in order to determine the cost of the actual credit check. Another way to go about it, is to contact one of the Credit Reference agencies stating that you are considering starting a small business and part of the business plan involves cost to credit checks. Make sure that they know it is only in the planning stage at present and is a cost exercise. However state it may only be several checks a week and ask for an estimate to do a basic check on individuals and not a business. Make sure that you make it sound convincing.

[Steve__M]

Did the agent give you a copy of their terms of business before they took your money.

 

A family member has recently dealt with a bad example (who we are likely to be suing) and an excellent example which laid down precisely the conditions under which money could be returned.

 

Having done so I would not now deal with an agent not attached to a reputable ombudsman (I understand that soon all letting agents will need to join a scheme).

 

It sounds like they are lining their pockets with these fees, and probably knew from the outset that the landlord would not accept. Googling, you can quickly find companies that will do a one-off full reference check for £25-35.

[safa123]

Did the agent give you a copy of their terms of business before they took your money.

 

A family member has recently dealt with a bad example (who we are likely to be suing) and an excellent example which laid down precisely the conditions under which money could be returned.

 

Having done so I would not now deal with an agent not attached to a reputable ombudsman (I understand that soon all letting agents will need to join a scheme).

 

It sounds like they are lining their pockets with these fees, and probably knew from the outset that the landlord would not accept. Googling, you can quickly find companies that will do a one-off full reference check for £25-35.

 

Hi steve - no terms and conditions were shown, explained or given when I was at their office.

 

Instead I was reassured that a guarantor would be required if I were to fail the check and they marked onto my form adverse credit with joint IVA as I clearly mentioned this prior to application as I knew we would most likely fail as we have o/s debt from a previous failed business. During our viewing this was also mentioned and the agent said it was not a problem as the landlord is flexible and they would require a guarantor.

[safa123]

PS Steve do you have the terms outlining the conditions which you mention?

[Steve__M]

I don't have the terms from the "good" agent in front of me, but basically they amounted to returning the fee unless: you withdrew from the deal, or if you failed referencing having provided incorrect information that was demonstrably not an error.

 

I cannot remember if they said they could withhold some admin fees as by the time I'd read the terms the agent had already accepted my family member's application.

[mariner51]

The agent should also have provided a list of charges applicable to applicant IMO

[safa123]

I now have proof that when I was told that I had failed the credit check at that particular time 'no' credit check was conducted at all. In fact upon dispute a quick credit check was carried out 6 days after. We were told 6 days earlier from a phone call from the estate agents office that we had failed the credit check and that we were not entitled to a refund. I have now proof that they conducted the credit check and instructed the credit ref agency 6 days after I was told that they had sent, completed and I had failed the checks!

 

Would this amount to fraud?

[Surfer01]

I wonder if Small Claims court is the way forward if you can demonstrate the above. Plus you may be able to get compensation for all the running around and time spent in order to resolve the situation. It would be nice if you could get a CCJ against them however I think they will not take the risk and will cave in before it reaches that stage. Don't forget that with Small Claims you get back every penny that you spent raising the summons. I think the basic cost is about £25 5o start it off and produce the summons.

[Steve__M]

I now have proof that when I was told that I had failed the credit check at that particular time 'no' credit check was conducted at all. In fact upon dispute a quick credit check was carried out 6 days after. We were told 6 days earlier from a phone call from the estate agents office that we had failed the credit check and that we were not entitled to a refund. I have now proof that they conducted the credit check and instructed the credit ref agency 6 days after I was told that they had sent, completed and I had failed the checks!

 

Would this amount to fraud?

 

This is extremely dodgy. Not just the "covering their backs" aspect, but the fact that they have conducted a credit check on you *after* they have already rejected you. I seriously doubt that the terms they have agreed to allow them to do that.

 

They have blagged some personal data about you that they are now using against you.

 

Some people are in court at the moment for doing similar things.