Three property businesses have been expelled from The Property Ombudsman (TPO) after failing to pay compensation awards following complaints from consumers. The cases involve two businesses operating in the residential rental sector and a surveying firm. The unpaid awards ranged from £100 to £800.
Businesses removed after non-payment
TPO took action against Musgrove & Co, Tothill Residential Surveying Ltd and Coles Property Management. Its independent Finance, Performance and Compliance Committee reviewed the cases before agreeing to expel all three businesses. TPO said its decisions are binding on registered firms.
Details of the individual cases
North Walsham-based Musgrove & Co, registered as Musco Property Limited, faced a complaint from a landlord over its handling of a tenancy. The landlord complained that the agent refused to transfer a holding deposit. The complaint also raised errors in the tenancy agreement and the failure to provide a suitable replacement. In addition, the landlord complained that the agency failed to respond to a formal complaint. The landlord subsequently contacted the tenants directly and arranged the tenancy. TPO said Musgrove & Co failed to provide evidence requested during its investigation. The Ombudsman upheld the complaint and ordered the business to pay £300.
Tothill Residential Surveying Ltd faced a complaint from a buyer who had paid £500 for a survey. The buyer complained that the Mundon-based firm failed to provide the survey report. They also raised concerns about how the business handled their subsequent complaint. After reviewing the case, TPO ordered the company to pay £800.
Blackpool-based Coles Property Management, registered as C.P.M (NW) Limited, faced a complaint from a landlord over two rental properties. The dispute arose after the landlord ended the firm’s management agreement and appointed another agent. TPO found delays in transferring tenants’ deposits to the new agent. It also identified a delay in forwarding rent mistakenly paid to Coles Property Management. The Ombudsman found further service failings relating to communication and ordered the business to pay £100.
Chief Ombudsman stresses compliance
Chief Ombudsman Lesley Horton said: “An Ombudsman award is not optional. When a complaint is upheld and compensation is directed, registered businesses are expected to comply with that decision.
“Expulsion is always a last resort. We work with businesses throughout the compliance process to help them meet their obligations and ensure consumers receive the awards they are due.”
Horton said only three businesses had reached the point of expulsion during the quarter, with most firms complying with TPO decisions. “But consumers must be able to trust that redress has real meaning,” she added. “Where a business ultimately fails to comply, we will take appropriate action to protect consumers and maintain confidence in the scheme.”
