Calls to Make Client Money Protection a Legal Requirement
September 10, 2014
SAFE (Safe Agent Fully Endorsed) Agent, the kitemark that denotes that a firm protects landlords and tenants money, has been urging ministers to use the Consumer Rights Bill to make Client Money Protection a legal requirement for all letting agents.
John Midgley, chairman of SAFE Agent, has written to the Housing Minister, Brandon Lewis, saying: “Currently, if an agent misappropriates clients’ funds or uses them fraudulently, there is no recompense if the agent is not covered by a CMP scheme.
“We understand the argument that suggests that Tenancy Deposit Protection offers reimbursement for tenants if anything should happen to their deposit, but in our experience any agent who is fraudulently using other
people’s money to trade or for their own use rarely registers deposits and therefore consumers lose out.”
Young London helped to set up the SAFE Agent kitemark in 2011 in a drive to raise consumer awareness of the importance of making sure that they use an agent that is part of a recognised Client Money Protection scheme.