Rent recognition provider CreditLadder is set to introduce two services that will allow letting agents and landlords to automatically collect and distribute rent payments, after receiving regulatory approval from the Financial Conduct Authority.
CreditLadder has been authorised as a payment institute, which gives it powers to organise and take rental payments from a tenant’s account on behalf of a landlord or letting agent.
Currently it records when a payment is made and informs Experian to boost a tenant’s credit score, but CreditLadder’s new regulatory authorisation means it will be able to organise and request rental payments from a renter’s bank account on behalf of the 2,500 lettings agents it works for.
A tenant will have given permission by signing a standing order allowing a specific amount of rent to be taken, and CreditLadder is developing products that will then ensure rent is collected on time and distributed to the right people as well as being recorded on a tenant’s credit report.
Sheraz Dar, chief executive of CreditLadder, said: “Winning FCA approval is a huge step forward for CreditLadder because it significantly widens the range of services we can offer tenants and underlines to them as well as commercial partners and investors the integrity of our platform.”