A letting agent which gave tenants licences rather than tenancy agreements has been landed with a bill of over £20,000.
The ‘licences’ apparently meant that the two tenants had no rights to statutory deposit protection, the local newspaper has reported.
The tenants complained to local Trading Standards when they could not get their deposits back.
The prosecution is thought to be the first of its kind in the country, after agent Green Live was taken to court by Trading Standards at Islington Council in London.
Green Live pleaded guilty to two offences under the Consumer Protection from Unfair Trading Regulations.
The company also pleaded guilty to using a letting agency association logo, although it was not a member.
It was fined £11,000 for issuing two licences, and £5,000 for the misuse of a logo.
The two tenants involved were awarded £3,000 compensation, while the council was awarded costs of £1,500.
Islington’s housing boss Cllr Diarmaid Ward said: “We want everyone in Islington to have a decent, secure home, and to be protected from illegal and precarious housing conditions.
“This case, which we believe is the first of its kind in the country, shows we will take action where letting agents break the law and issue sham licences.
“We will not tolerate illegal practices like sham licences in Islington and if we become aware of any similar cases we will investigate with a view to prosecution.”
It is this kind of behavior that gets the whole profession a poor reputation.
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