Two letting agents sharing a common director have been expelled from The Property Ombudsman scheme following complaints from landlords and tenants.

Consumers in Southampton are being warned that both agencies, trading as ‘The Flat Agency & Michael Browns Ltd’ and ‘Property Vibe Ltd’ have been expelled from lettings redress membership of TPO scheme for at least three years.

This means they cannot legally trade as letting agents and cannot join other redress schemes unless and until they have settled their obligations with TPO.

Complaints by landlords and tenants against The Flat Agency & Michael Browns Ltd were all upheld. Most related to delays and/or failure in paying money owed to complainants.

The Ombudsman described the agent’s practices as “dishonest and deceitful” and ordered the company to repay the money owed along with compensation.

When the agent failed to do this, the case was referred to the scheme’s Disciplinary and Standard’s Committee (DSC). When it still failed to pay, the DSC expelled the agent from membership and from registration.

Gerry Fitzjohn, chairman of the TPO Board, said: “Cases like these are extremely rare but this agent has demonstrated a complete lack of regard for its clients, and failed to forward money to them which it should have been keeping in a separate clients’ money account.

“The firm committed several flagrant breaches of the TPO Codes of Practice for Residential Letting Agents and has been expelled as a result.”

Meanwhile, Property Vibe Ltd was also disciplined for failing to refund money owed to complainants or compensation. The company had already left the scheme in 2015 after failing to pay its membership fees.

The Ombudsman criticised the firm for not responding to the complaints or to the TPO.

Fitzjohn added: “Both agents have failed comply with the TPO Code of Practice by not providing any evidence to support their side of the story or demonstrate an appropriate complaints handling procedure.

“Their reckless management has caused avoidable aggravation, distress and inconvenience.”

The Flat Agency & Michael Browns Ltd and Property Vibe Ltd were both officially expelled on March 11, 2016.  TPO is working closely with Southampton Trading Standards in relation to these issues.

Clive Robinson, Trading Standards team leader at Southampton City Council, said: “Membership of an approved ombudsman scheme is a legal requirement for all letting agents as is the proper protection of tenants’ deposits and we will be working with the Ombudsman and others to address any identified breach of the law.”