Insurance News Archive

NLA: 'Money for nothing' renewal charges should be scrapped

Posted by Jonathan Walker

Landlord property insurance holders may no longer have to pay renewal fees with agents, after the National Landlords Association (NLA) slammed the charges.

The organisation said the "money for nothing" charges should be scrapped, praising a ruling by the Office of Fair Trading (OFT).

Currently, the OFT is pursuing a court order against a high street letting agent, following a landmark judgement from the High Court in the summer that commission charges were "severely camouflaged" and were a trap or timebomb for consumers.

The OFT said that landlord property insurance holders should not face a "surprise bill for services they have not consciously agreed to".

David Salusbury, chairman of the NLA, said: "The message to all letting agents is now clear: do not try and mislead your clients. Our advice to landlords remains the same. Always check the small print before signing on the dotted line."

The OFT has recently suggested that a shake-up in how homes are sold could lead landlord property insurance holders to cut out estate agents, giving them better deals.

24 Feb 2010