Letting agents face 'unfair fees' challenge

[beaker]

This could be an interesting one to watch.

http://business.timesonline.co.uk/to...cle3441638.ece

"The OFT has picked on Foxtons because it continues to charge commission on a property rental after a fixed tenancy period has ended, regardless of whether it helped to persuade the tenants to stay or is still actively involved with the property.

"Under European law, the OFT has the power to challenge what it claims are “unfair” terms and conditions. That is defined as a term or condition that “causes a significant imbalance in the parties' rights ... to the detriment of consumers”."

[tim123]

This could be an interesting one to watch.

http://business.timesonline.co.uk/to...cle3441638.ece

"The OFT has picked on Foxtons because it continues to charge commission on a property rental after a fixed tenancy period has ended, regardless of whether it helped to persuade the tenants to stay or is still actively involved with the property.

"Under European law, the OFT has the power to challenge what it claims are “unfair” terms and conditions. That is defined as a term or condition that “causes a significant imbalance in the parties' rights ... to the detriment of consumers”."

It should be interesting shouldn't it!

The OFT have dug themselves a hole here.

They have previous decided that the terms of the contract between Landlord and Tenant are subject to UTCCA 1999 because they have deemed the Landord to be a "business".

Now they are saying that the terms of the contract between the Landlord and a Lettings Agency are subject to UTCCA 1999 because the Landlord is a consumer.

They can't both be right.

Much though I do not like the terms that the OFT are complaing about, they don't seem to me to be an unreasonable clause in a B2B contract.

tim

[NotAllThere]

What used to annoy me was the fact that the agencies charged me the tenant for each renewal.

Interestingly, when I refused to pay them, pointing out I was under no obligation, as there was no contract between me and them, they decided to waive the fee as a gesture of goodwill.