An agent which did not join a redress scheme despite reportedly being given a three-month grace period has been fined £3,000.
Let Belle Vue, based in Darlington, received the fine from the borough council.
Letting agents have been required to belong to a government-approved redress scheme since October 2014.
Final notices to the Middlesbrough-based agency are said to have gone unanswered before the council issued the £3,000 fixed penalty earlier this year.
Let Belle Vue appealed, but the fine has been upheld by an independent tribunal which found in favour of the authority.
Cllr Chris McEwan, Darlington Borough Council’s cabinet member for economy and regeneration, said: “Access to a redress service is very important to private tenants if a problem does arise.
“The vast majority of local lettings agents signed up to a redress scheme voluntarily before the legislation was introduced.
“We take the rights of tenants very seriously and so we took action against the small number [of agents] that did not ensure that tenants and landlords can get an independent redress if they have a complaint.”
David Burrell, a private sector housing manager at Darlington, said: “The council has a duty to act where letting agents and property management agents fail to register with an approved redress scheme.
“Although we will always try to work with agents to help them, legal action will be taken where they fail to adhere to legal requirements.
“The costs are small in comparison to the fines available.”
Let Belle Vue is said to have now registered with an approved redress scheme.
On its website, Let Belle Vue describes itself as offering sales, lettings, and property management services
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