Latest Insurance News
OFT ruling on unfair fees 'welcome'
24 Feb 2010
Posted by Michael Brown
An Office of Fair Trading (OFT) ruling which found that letting agent Foxtons charged unfair fees to landlord buildings insurance holders, has been welcomed by an industry body.
Tom Entwistle, director at LandlordZONE.co.uk, said that the decision, which prevented the company from using certain terms concerning sales and commissions in its letting agreements with consumer landlords, shows that it is unfair to hide conditions and charges in the small print of contracts.
"Landlords should read these contracts very carefully and negotiate any terms or commissions they are not happy with," he told landlord buildings insurance holders.
Mr Entwistle went on to say that for letting agents to charge full commission on renewal or demand a full sales commission if a tenant were to purchase a property would be unfair in his opinion.
The OFT is currently writing to letting agents and key industry bodies to make it clear that they are expected to comply with the law as set out in the ruling.
