It's illegal for Letting Agents to charge registration fees

Bluey · Community Moderator Joined: 21 Mar 2006 Posts: 4815

All,

There are dozens of complaints from tenants on the Gumtree about being charged up front registration fees by letting agents before receiving the property listings or being permitted to undertake viewings.

This is usually accompanied by allegations that they fish for tenants by advertising properties that they do not actually have on the market or providing misleading information about the ones that they do.

It is illegal for a letting agent to charge such fees - they can only charge fees after you have secured accommodation (for tenancy agreement, credit check, inventory check-in/check-out, etc). Here are some valid references to this.

Hammersmith Council Website

"it is an offence for an agent to demand or accept a fee for registering the name of a prospective tenant, or for supplying addresses or particulars of properties."

http://www.lbhf.gov.uk/Directory/Business/Trading_standards/Misleading_Adverts/62258_Misleading_Adverts.asp?classification=Eng;Cons;Adv;OthPrb&id=122507

Shelter and Citizens Advice are firm about this-

"You shouldn't have to pay any fees until the agency has found a place for you. It is a criminal offence for an agency to charge you just to register or for supplying addresses and details of accommodation. Don't pay any fees until you've been offered a place. If you believe an agency is acting illegally tell your local council's tenancy relations officer or legal department."

http://england.shelter.org.uk/advice/advice-244.cfm

"When you register with an accommodation agency, it is only legally allowed to charge a fee when it finds you somewhere to live."

http://www.adviceguide.org.uk/index/family_parent/housing/finding_accommodation.htm#accommodation_agencies

In order to counteract this, you should report any ads to the Gumtree Admin for removal if the agency tries to charge you a fee as their rules forbid users from posting "any unlawful..information ..or encouraging conduct that would constitute a criminal offence...or otherwise violate any applicable law" and "We are also always eager to hear of unscrupulous traders/advertisers attempting to operate in the community." The Gumtree should be cutting off their free ads that scamsters readily enjoy, forever supplying them with naive tenants who don't know their rights.

You should never register with an agency that charges this upfront registration fee - it will only encourage them to get income from ignorant tenants rather than actually providing real accommodation services. Walk away and find a proper agency, one that's regulated by ARLA, OEA, NAEA or NALS. Any idiot with a mobile phone can set themselves up as a letting agent (and they do).

Contact your local trading standards office, tenancy relations officer or legal department. Consider reporting them to the local Police - Police aren't keen to get involved in letting agent/tenant problems which they see as a low priority but if its a criminal offence, then insist they look into it and charge the agency for this act of fraud. Write to the local MP if the Police and council seem lethargic.

Consider launching an online claim through the small claims court to recover your fee if the agency is reluctant to refund it. Firstly write to the agency, sending it recorded delivery and/or in person with a witness, requesting the full refund of the admin fee within 10 working days and that you'll go through the small claims court if not refunded. Keep a copy of everything.

If they don't, then launch a claim online - it'll cost you a fee but you can recover this, plus your expenses if its found in your favour. As its against the law to charge an upfront fee before securing the accommodation, you should be able to win your case. Seek advice from Shelter, the charity that offers free advice, before you undertake this action, though.

https://www.moneyclaim.gov.uk/csmco2/index.jsp

http://forums.gumtree.com/topic19661.html

Bluey · Community Moderator Joined: 21 Mar 2006 Posts: 4815

is this kind of thing still going on or are people a bit more wiser about it?

One thing I forgot to recommend is if a person has paid a registration fee by credit/debit card, to ask their bank to instigate a 'charge-back' where you report that you didn't receive the goods and services as charged and where the bank then cancels or witholds payment to the vendor. There's not much a company can do if an individual gets a refund of an illegal fee that way.

Bluey · Community Moderator Joined: 21 Mar 2006 Posts: 4815

Yep, this illegal practice is still continuing on the Gumtree

"There is an Estate Agents posting adverts for properties and not declaring in the ad that they are an agent. When you call they will not give you any details until you join them for a fee, which in my opinion is deceitful and very very annoying! Gumtree....can't you make them declare that they are an agent????"

http://boards.gumtree.com/viewtopic.php?p=838562#838562

Think its worth setting up a poll to see if users want Gumtree admin to post a scam warning against this on their accommodation ad pages, like they do to warn people about fake Gumtree escrow services for deposits?

Jalouse · Joined: 24 Apr 2008 Posts: 6 Location: London

hey, just to let you know that this http://www.gumtree.com/london/46/22991446.html is an ad by Spacelet. a couple similar ones (low price, west ken, no contact details and no pics provided of course) are by them too. just thought you might want to know.
i contacted them trough Gumtree and got their replies:

From: Spacelet <info@spacelet.net>
To: removed
Date: 24 Apr 2008 15:51
Subject: Fw: Your Gumtree.com ad
Reply | Reply to all | Forward | Print | Add sender to Contacts list | Delete this message | Report phishing | Show original | Message text garbled?
Hi,

Thank you for your enquiry.

The flat you enquired about is still available and we also have a selection of other properties too. If you would like us to make an appointment for you to view this property and see a selection of other properties, you would first have to come to our office and join the agency.

We are an agency and we charge a fee for our services. We have several properties in London and the surrounding areas. Our properties are very competitively priced because we offer landlords a free service and in return they keep the rents low.

If you would like to see a selection of our properties within your specified criteria, you have to come to our office and join the agency. Our opening hours are Monday to Friday: 9.30am to 7pm and 10am to 4pm on Saturdays. Our joining fees are: £59 for one person, £79 for two persons and £35 per person for three or more persons. Once you join the agency we can make appointments for you to view properties direct with the landlord. The service is valid for 3 months and you can see as many properties as you wish during this period.

If you require any further information, please do not hesitate to contact me via email: info@spacelet.net or telephone on: 020 8743 0043. Our address is: 1 Frithville Gardens, Shepherds Bush, London W12 7JG.

We look forward to meeting you.

Regards,

Claire

----- Original Message -----

>
> Contact: removed
>
> ______________________________________________________________________
>
> Dear all,
> My name is Jana, I am a 27-year old single professional looking for a double bedsit/studio in North or West London. My budget is up to GBP 600, preferably GBP 550. Your ad re semi-studio in Kensington Olympia sounds particularly appealing. I'd be happy to view the property. Please contact me at phone number removed or by email anytime.
> Thanks!
>
> Kind regards,
> Jana
>

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KillerK · Joined: 24 Jul 2007 Posts: 13475 Location: SW London

Mods, you should prob edit out the mobile number/details at the end of Jalouse's post.

Orwellian_Logic · Joined: 15 Aug 2007 Posts: 5979 Location: Londonistan

KillerK · Joined: 24 Jul 2007 Posts: 13475 Location: SW London

Look again. Wink

Orwellian_Logic · Joined: 15 Aug 2007 Posts: 5979 Location: Londonistan

True.
I was going to say 'unless' it was a private email...... Rolling Eyes

KillerK · Joined: 24 Jul 2007 Posts: 13475 Location: SW London

If you say so..... Laughing

Jalouse · Joined: 24 Apr 2008 Posts: 6 Location: London

KillerK · Joined: 24 Jul 2007 Posts: 13475 Location: SW London

Jalouse · Joined: 24 Apr 2008 Posts: 6 Location: London

Thally · Joined: 19 Mar 2007 Posts: 10044 Location: Edinburgh

DirtyGirl · Community Moderator Joined: 07 Apr 2007 Posts: 21987

Thread needs edited... haven't time to do it now... phone numbers/personal details to be removed and then the thread can go back.

Cheers
DGx

Bluey · Community Moderator Joined: 21 Mar 2006 Posts: 4815

It would be nice if Admin could interrogate the IP addresses of Spacelet to ban them from Gumtree or get their legal department to issue a notice that forbids them from posting.