Agency Holding Fee - Reference fail but no options given

Southpaw18

Hi,

I paid £350 to hold a property with a well known agency, this was a large amount, i paid and was given a receipt for.

the company undertook my references and said they worked on behalf of the landlord who was in another country.

10 days before we moved, after sending our notice on our old place, they called to tell me my references failed, basically it asks for if you have any CCJs, Bankruptcy or adverse credit, i replied no, as I paid off in full an IVA over a year ago and presumed this was the case.

The agents, who were working on the landlords 'behalf' said that the landlord didnt like this, even though it was fully paid, he was not offering me credit, and i had no outstanding debt on my rating. When i asked about other options, which the firm outline in their T&C's, such as a guarentor, or even payment in full, the firm said that the landlord wouldnt accept ANY other options at all. I found this totally unfair, as if he could just cut off ALL options for me to make payment, i sent an email, stating I had 6 years of proven rent payments, ALL on time, i had paid my IVA and all was complete, but he was accepting none of this.

The agents now want to keep ALL my £350, even though they represent this landlord, they are saying it was his decision, but SURELY they cant not give any further options over something they arent offering me credit on, and something that is already paid?

The T&C's say a guarentor maybe used, but after so many attempts the agents wont let up.

Can someone PLEASE tell me what i can do in this situation as I cant afford to lose this money.

pmlindyloo

If your landlord does not go ahead with your tenancy then you have a right to have your holding deposit returned.

See here:

http://england.shelter.org.uk/get_advice/finding_a_place_to_live/renting_privately/letting_agencies

Thrugelmir

Southpaw18 wrote: »

10 days before we moved, after sending our notice on our old place, they called to tell me my references failed, basically it asks for if you have any CCJs, Bankruptcy or adverse credit, i replied no, as I paid off in full an IVA over a year ago and presumed this was the case.

The agents, who were working on the landlords 'behalf' said that the landlord didnt like this,

Business relationships rely on trust. So non-declaration of a material fact will influence a decision. As it gives an impression as to the type of person you are. Whilst it may have been a genuine mistake on your part. First impressions do matter.

Southpaw18

Thank you both very much for the replies.

Thrugelmir - I know, this was an error on my part, I presumed my 'adverse credit' wasnt now an issue, although my IVA shows, it shows as paid, and presumed my credit wasnt adverse anymore.

I appreciate this isnt a great situation, however after this, I confirmed I could provide a guarentor, and 6 years worth of paid rental payments, ALL up to date. These were not even considered by the landlord, even though the letting agents T&C's states that they will use these if there are issues.

This situation, should the options i offered have failed, I would understand, but simply not liking something on the references and rejecting ALL other options, for something im not even borrowing money over, seems VERY unfair. Especially now the agent insist they wont return my £350, which is a HUGE fee in anyones eyes considering it was literally to take it off the market and do the referencing.

Im putting together a complaint, and just need as much backup info as I can get.

PMLindyLoo - thank you very much for that, its information like that that I really need, keep it coming!!

Thrugelmir

Southpaw18 wrote: »

I know, this was an error on my part, I presumed my 'adverse credit' wasnt now an issue, although my IVA shows, it shows as paid, and presumed my credit wasnt adverse anymore.

Clearing a debt is only the start of the process. Your credit history will remain impaired for some years. So you'll need to rebuild your reputation by being squeaky clean.

jaybeetoo

https://www.gov.uk/tenancy-deposit-protection/overview

Are you sure the £350 is just a holding deposit? Is it an application fee (to cover the credit check, administration costs, etc.)? What paperwork did you get from the agent when you handed over the £350?

I would expect the agent to keep some of the money to cover their reasonable costs but £350 does sound a lot.

Southpaw18

jaybeetoo wrote: »

https://www.gov.uk/tenancy-deposit-protection/overview

Are you sure the £350 is just a holding deposit? Is it an application fee (to cover the credit check, administration costs, etc.)? What paperwork did you get from the agent when you handed over the £350?

I would expect the agent to keep some of the money to cover their reasonable costs but £350 does sound a lot.

It isnt as such a holding deposit, its what they called a holding fee to take the property off the market, and to run administrative costs, such as the references.

But exactly like you said, its WAY too much to expect me to pay all of that for a credit check (free-£5) and to pay a staff member to chase my references for barely an hour.

Southpaw18

Also, this fee was due to be deducted from the final costs once all had been done and was ready to be paid, isnt this a case to prove that it isnt really for administrative costs? if it was to be deducted anyway?

jaybeetoo

Southpaw18 wrote: »

But exactly like you said, its WAY too much to expect me to pay all of that for a credit check (free-£5) and to pay a staff member to chase my references for barely an hour.

The credit check an agency does costs a lot more than £5. Even so, £350 sounds a lot for reasonable costs.

Somerset

Southpaw18 wrote: »

But exactly like you said, its WAY too much to expect me to pay all of that for a credit check (free-£5) and to pay a staff member to chase my references for barely an hour.

What about the lost rental income for the landlord ? The property has to go back on the market, tenant's found, vetted etc. It was taken off the market because of your application, now the process has to be repeated.

Southpaw18

Somerset wrote: »

What about the lost rental income for the landlord ? The property has to go back on the market, tenant's found, vetted etc. It was taken off the market because of your application, now the process has to be repeated.

Well the loss of rental would amount to days, and the rental wasnt available anyway until 6 weeks later, we asked to move early but this was denied, so I cant see how this could be called lost income in this instance.

I see your point, obviously there is some loss there, but in no way does this constitute not giving me ANY other options of payment given the offers I made, ive now rented a place £100 more a month, with a guarentor, and had absolutely no issues.

If landlords can just cut off any other options based on their own issues, they surely cant just keep it. I mean, whats to stop him saying 'oh he has a credit card so i dont want him to rent the place'. . then they just keep my £350?

Seems a lucrative industry I may need to get into if that is the case.