Letting Guarantor Fee

edited 30 November -1 at 1:00AM in Reclaiming Mortgage Fees, Council Tax, etc
1 reply 812 views
BarklioniBarklioni Forumite
5 Posts
Hi,

My wife and I recently paid a letting agency £195 to run a mandatory credit check to facilitate us renting a property from the agency. We transferred the money into their account and were subsequently sent a web link to complete the application.

I have some adverse credit so after the application the agency came back and advised a guarantor would be required and this would cost an additional £75.

On Friday (16/09/11) we transferred the £75 however our guarantor could not complete the application until today (19/09/11).

On Saturday (17/09/11) we were contacted by the buyer of our current property and informed they would be pulling out of the property sale, consequently we have had to terminate our move into the rented property.

I contacted the letting agency this morning to inform them and also to request the refund of the £75 guarantor application fee.

The letting agency has advised that as the £75 has been paid, the guarantor application is considered processed therefore no refund will be made.

Can they do this? Am I entitled to my £75 back as the application was never completed?

Many thanks

Barklioni

Replies

  • dunstonhdunstonh Forumite
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    My wife and I recently paid a letting agency £195 to run a mandatory credit check to facilitate us renting a property from the agency.

    Nice mark up on something that costs a few pounds for them to obtain.
    Can they do this? Am I entitled to my £75 back as the application was never completed?

    Almost certainly they can. You will need to check the terms of the contract but fees like this are typically charged as they do the work. They are non-refundable as the work has been done. It doesnt matter if you dont complete the transaction to the end.

    However, if they have not done any of the work yet in relation to that payment then you could argue that they should refund it. However, if they refuse, it will require court action by you and that means a cost that is around 50% of what you are claiming and you would have to show that they have breached their contract.
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