missold tenants rent guarantee insurance

Talon1980

Hi,
We rented a flat through choices estate agents. We paid £50.00, to have someone act as a garantor then then they told us that we had to also take out rent guarantee insurance at £49.00, a month or we would not be allowed to rent the property.

They said that if we couldn't meet the rent, choices would pay this for us so there would be no worries.

My partner was 9 months pregnant at the time and we had found nowhere else suitable so had no option but to sign.

However now looking back on this it seems like we have been ripped off, as the garantor had already guranteed the rent and on looking further into the insurance all it would cover is one months rent which it would pay and then at the end of the tenancy they would take the rent from the deposit and costs for administering the claim.

I also thought that insurance had to be fit for purpose and my partner who was going on maternity leave so was guranteed income for six months would have no need to make a claim anyway.

Any advice on this strange situation would be appreciated, I personally feel we have been missold a product that is not just not fit for purpose but that was also sold to us with when we already had suitable cover in place with the garantor.

Has this happened to you, have you tried to claim back costs any advice at all would be appreciated.

Thanks in advance.

[Deleted User]

Talon1980 wrote: »

However now looking back on this it seems like we have been ripped off, as the garantor had already guranteed the rent and on looking further into the insurance all it would cover is one months rent which it would pay and then at the end of the tenancy they would take the rent from the deposit and costs for administering the claim.

The guarantor pays in the event you don't, but it's somewhat unfair to say you didn't need insurance in that case. The guarantor (whoever that was) obviously only agreed to help you because he/she hoped they would never actually be called upon to pay your rent for you!

However, I do agree £49 a month for a policy that only paid out one month's rent is very expensive.

I doubt you'll be getting anything refunded, though, as you were not forced to move into one of this company's properties and could have gone elsewhere. Your partner's maternity pay is irrelevant.

Chapuys

Moneyineptitude wrote: »

I doubt you'll be getting anything refunded, though, as you were not forced to move into one of this company's properties and could have gone elsewhere.

What has that got to do with the signing of an unfair contract? Unfair contracts are invalid even if both parties agreed to them, had witnesses, signed them in triplicate and published them in the London Gazette. Contracts must be fair on both parties.

The OP could request the money back but the only problem with this is if the OP wanted to challenge the contract it would probably cost more than the £50 to take them to court.

antrobus

Chapuys wrote: »

What has that got to do with the signing of an unfair contract? Unfair contracts are invalid even if both parties agreed to them, had witnesses, signed them in triplicate and published them in the London Gazette. Contracts must be fair on both parties....

Says who?

There is an Unfair Contract Terms Act 1977 which regulates certain terms contained in a contract, depending on whether it is a B2B or B2C contract.

https://www.gov.uk/unfair-terms-in-sales-contracts/overview

I am not aware of any general rule in law that voids the whole contract. But then I am not a lawyer, and perhaps you know better.

antrobus

Talon1980 wrote: »

....I personally feel we have been missold a product that is not just not fit for purpose but that was also sold to us with when we already had suitable cover in place with the garantor. ....

The guarantor's guarantee protects the landlord, it doesn't protect you.

If you don't pay the rent, and the landlord gets the guarantor to cough up the money, all that means is that you now owe the guarantor rather than the landlord.

Pixie5740

Did the letting agent sell you the insurance policy? If so then I think your best bet would be to write to the letting agent requesting that they refund you for the policy which a) was unsuitable and b) unnecessary since you had a guarantor in place. If that does work follow the letting agency's complaints procedure and escalate the matter using their complaints process.

If that still doesn't get you anywhere then, assuming you are in England or Wales, you can escalate the matter to whichever redress scheme the letting agency is registered with. By law the letting agency must be registered with one of three redress schemes; The Property Ombudsman, The Property Redress Scheme, Ombudsman Services Property.

https://england.shelter.org.uk/get_advice/private_renting/problems_with_renting/letting_agent_redress_schemes

I'm not saying you'll win but I think it's worth a shot. Letting agency fees have been getting out of hand in England and Wales but selling you insurance that you don't need, is expensive, and doesn't even cover you is really taking the biscuit.

MyOnlyPost

Google landlords rent guarantee insurance, it is much cheaper than you have been charged. The landlord could have taken out a policy at this cost and then increased their rent to cover it, which would be reasonable.

Nasqueron

Try posting in the housing forum, there are a lot of housing law experts in there

http://forums.moneysavingexpert.com/forumdisplay.php?f=16