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Redress Schemes – Lettings Agency Work and Property Management Work
14 December 2013
Enterprise and Regulatory Reform Act 2013, s 87(1), (2)
SI 2013/3192: Provision is made for approved redress schemes for dealing with complaints by consumers against lettings agents and property management agents, who must be members of such a scheme. Procedures covered include applications for approval of a scheme, conditions a scheme must meet to be designated as a government administered redress scheme, and procedures for the withdrawal of approval or designation from a scheme. (Updated from draft: 17 December 2013)
The Enterprise and Regulatory Reform Act 2013 provides that the Secretary of State may require lettings agents and property management agents to belong either to an approved redress scheme or to a government administered redress scheme.
A redress scheme is a scheme which provides for complaints against members of the scheme to be investigated and determined by an independent person.
The Order requires schemes to make satisfactory provision for:
- how agents can join, leave or be expelled from the scheme
- the types of complaints which may be made under the scheme (including complaints about the failure to comply with any provision of a code of practice approved under the Leasehold Reform and Urban Development Act 1993, s 87, and non-compliance with the provision of a voluntary code of practice or other such document)
- the ombudsman’s duties and powers in relation to investigating and determining complaints, apologies, explanations, compensation and such other actions in the interest of the complainant as the ombudsman may specify)
- the enforcement of any requirement to provide redress which has been imposed on a member of the scheme (which may include expulsion from the scheme)
- how complaints can be made about the redress scheme itself
- the provision of information to other redress schemes or to any person who regulates lettings agency work and property management work (for example, so agents who do not belong to a redress scheme can be identified)
- the publication of an annual report.