Agency Holding Fee - Reference fail but no options given

jaybeetoo

Southpaw18 wrote: »

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?

If the landlord is using an agency then the landlord wont get a penny of that £350. It all goes to the agent.

If the credit check turned up something, the landlord is within his rights to refuse to let out the property. It is in the landlord's interest to rent out the property with minimum gaps between lettings so he/she will be hoping the check comes back clear.

If the landlord has insurance to cover people not paying rent, it will be a condition of that insurance that tenants pass an approved credit reference check.

Not all letting agents use the same credit checking companies so you may fail a credit check with one agent and pass with another.

BASFORDLAD

It could be a con.... They could do it to loads of people and make a killing.....

cornishmum

Have you got a receipt showing a breakdown of the £350?

We also paid a holding deposit and admin fee to the agency for the place we're moving into mid-January, but it clearly states on the paperwork that £200 is a holding deposit which will be taken off the total invoice to be paid the day we move in (deposit/bond and first months rent). The other £150 is non-refundable admin/reference/credit check amount. It says that if we fail the checks the £200 is returned but if we chose to cancel the tenancy before the moving in date, the agency keep the £200 holding deposit as a 'loss of rental income/cover costs of re-listing property' etc.

Check your paperwork. It should be clearly stated on what the £350 covers. If not, why not?

Southpaw18

cornishmum wrote: »

Have you got a receipt showing a breakdown of the £350?

We also paid a holding deposit and admin fee to the agency for the place we're moving into mid-January, but it clearly states on the paperwork that £200 is a holding deposit which will be taken off the total invoice to be paid the day we move in (deposit/bond and first months rent). The other £150 is non-refundable admin/reference/credit check amount. It says that if we fail the checks the £200 is returned but if we chose to cancel the tenancy before the moving in date, the agency keep the £200 holding deposit as a 'loss of rental income/cover costs of re-listing property' etc.

Check your paperwork. It should be clearly stated on what the £350 covers. If not, why not?

Hi,

The receipt i have literally has my name, the amount and says its non refundable on returning of bad references, but with no other options for me to pay (which was always agreed in every other agency ive ever been to) I dont see how £350 can be considered a fair fee for their costs. I think £100 would still be fairly steep.

spacey2012

I would issue a swift notice before action by recorded delivery and on the end of the 14th day file a money claim on-line for all the £350.
Let them explain to the Judge why they think they have a right to £350

Southpaw18

spacey2012 wrote: »

I would issue a swift notice before action by recorded delivery and on the end of the 14th day file a money claim on-line for all the £350.
Let them explain to the Judge why they think they have a right to £350

Hi

thanks for this, can you provide more info on this? Where to go etc etc?

Is it worth writing a complaint letter first then doing this?

alta

Regardless of your credit possition ect, if the Landlord has pulled out for what ever reason, then you are entitled to your money back. It is up to the agency to recoup the admin costs from him. It is his choice to refuse any other terms.

jaybeetoo

alta wrote: »

Regardless of your credit possition ect, if the Landlord has pulled out for what ever reason, then you are entitled to your money back. It is up to the agency to recoup the admin costs from him. It is his choice to refuse any other terms.

I disagree. Any let would have been subject to the OP passing a credit check.

The OP didn't declare all of the material information and they failed the credit check ('references failed'). The agent (on behalf of the landlord) is entitled not to let the property to the OP and also not to be left out of pocket.

The only question is how much the agent is entitled to. This should have been agreed in writing when the OP handed over £350.

Southpaw18

jaybeetoo wrote: »

I disagree. Any let would have been subject to the OP passing a credit check.

The OP didn't declare all of the material information and they failed the credit check ('references failed'). The agent (on behalf of the landlord) is entitled not to let the property to the OP and also not to be left out of pocket.

The only question is how much the agent is entitled to. This should have been agreed in writing when the OP handed over £350.

I think to an extent this is true, but in no way does a slight error on my part constitute them keeping such a large sum of money, from the decision of a third party.

All I really need is something that confirms this, are there any agencies I can contact (Preferably by email) to get info on this?

I emailed citizens advice, who directed me to Shelter, and property ombudsman but I need to arrange a meeting with shelter and I dont want to use the ombudsman until ive actually written my complaint.

Any ideas?

Thrugelmir

Southpaw18 wrote: »

The receipt i have literally has my name, the amount and says its non refundable on returning of bad references,

So the terms were explicit.

What did the letting agent say at the time?