Jun/091
Assured Short-hold Tenancy Agreement
Homeowners to claim back compensation from rogue traders.
From the 1st of July homeowners can claim compensation due to steps being taken by the Financial Services Authority to tackle consumer problems. Those who have lost homes or money to rogue rent back schemes can take their case to Financial Ombudsman Service and may be awarded compensation for their loss.
Sale and rent back companies are targeting the vulnerable in the times of the recession, offering them a silver lining by asking to buy their home and allowing them to rent it on an assured shorthold tenancy lasting six to 12 months. However, the homeowners have to give the companies £500 for their service and then find that there houses are bought for far less than market value.
Under a new ruling by the FSA, firms will have to apply to the Financial Services Authority to continue trading and comply with the FSA’s rules. Any that do not comply will be stopped, banned and even fined.
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4:57 pm on August 2nd, 2009
When facing repossession by your lender it can be tempting to sell your home to the first buy and rent back company that you come across. However, in the past not all companies were found to be ethical and this has meant that those selling did not get the deal they thought they were getting. Thankfully from 1st July the industry will be regulated by the Financial Services Authority which should work out safer for those wishing to sell. So when selling to avoid repossession choose an fsa regulated rent back company.