Letting Agent claiming back 8 months rent already paid to landlord

[Deleted User]

Unfortunately this is all speculation right now. You need to get a clear explanation of what is happening and why from the LA before you and they can decide on a course of action.

Personally, with such a large sum of money, I'd go to the LA and refuse to move until I'd seen all the paperwork relating to rent payments and the sum of money in question, and what the LA are doing about it. Then you know what you can or can't do.

If that doesn't work, I'd be getting legal advice.

mart6

if its HB fraud the council can not claim the money back from the landlord even if its paid direct to the landlord unless they can prove the landlord knew or is implicated in the fraud.
Been there got tee shirt, they may well write to you asking for it,may threaten court action . They did with me , told them to go do one i was happy to go to court.
Never heard a thing.
Couple of years later same thing another tennant they never even tried asking

theartfullodger

They CAN claim it back but a landlord would be advised not to pay.

Were I a council I would consider the paper & stamp a good investment - every now & then someone will pay!

DandelionPatrol

kinger101 wrote: »

I wouldn't be so sure of that. DD wouldn't be my preferred method of collecting rent, but this type of fraud is extremely rare, and the agency would probably claim they made credit checks against the people letting the flat to make sure they're solvent etc. It seems they sold a rent insurance policy as well which might have mitigated this risk.

I agree. It looks like DD could be more leaky than a sieve if you know how to play the system.

mart6

First HB reclaim i had i payed it back like a fool was only £176
Second time was a property i rented my step dad at a well discounted rate.
One day he calls in council offices to tell them from so and so date he will be recieving a small pension was £2.66 a month something stupid.
Left with proof he told them.
10 or so months later they stopped his housing benifit, claiming he never told them about pension so it was fraud,better still they wrote to me demanding £0000s back.. Told him to go to shelter.
His end was sorted they in the mean time had deducted the claim from rents from different properties i owned, i freaking hit the roof.
In walks dad with letter explaining how they can not reclaim from a landlord unless the above reasons.
Got straight on phone read letter to council said they had 3 days to repay or i start legal proceedings was in my account next day.

As posted above anyone can threaten legal action does not mean they will win

dln

I haven't read the policy carefully - I will do so.

plumfin

The company I work for experienced this a few years ago when a customer told his bank he had never had our direct debit notifications. They refunded him over £20K, for 18 months worth of payments made to us, I seem to remember, with immediate effect and advised us that it was now a civil matter. Luckily, we were able to prove in writing and with our reporting system that this was rubbish and they reversed it within a week, it helped that he had previously closed the account the money came from, so it was clear the claim was fraudulent.

However, as a short term cash flow injection for my customer, it certainly worked. If he had had access to the (closed) bank account, he would have had the £20K and been gone, leaving us in a nasty situation to chase a bankrupt person through the courts.

I don't know the law with regards to your issue, but direct debit rules certainly seem in favour of the consumer and the bank may not need a full explanation from them to start the process - it could be absolute rubbish and lies, but the refund may still be made. We found out by checking our bank balance to see £20K less than should have been. I sympathise and hope you get it sorted out.

dln

Interesting.

Thanks for 'feeling' for me. I do feel I have been in this situation unjustly.

dln

If it is HB fraud (I don't know if it is yet) could the bank claim it of the letting agent? Then could the agent claim it off me - even though the bank may not be able to?

HappyMJ

dln wrote: »

If it is HB fraud (I don't know if it is yet) could the bank claim it of the letting agent? Then could the agent claim it off me - even though the bank may not be able to?

No.

You weren't paid the HB direct by council so aren't required to repay it. That's not your problem.