Monday, 5 September 2016

Government Review Into Letting Agent Fraud

The Government is to review whether renters’ and landlords’ money is adequately protected from letting agent fraud or bankruptcy. They are launching a consultation on whether the Client Money Protection scheme (CMP) should become mandatory. Currently, letting agents hold money on behalf of renters and landlords for a range of reasons, including deposits, rental payments, and money for repairs. But this money is not always protected by a CMP, meaning the client could lose large sums if the letting agent goes bankrupt or commits fraud. Industry estimates letting agents currently hold approximately £2.7 billion in client funds. Read more on 24dash.

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