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£4,000 fine for lettings agency which falsely advertised properties (23 October 2015)

Date: 23/10/2015
Duncan Lewis, Legal News Solicitors, £4,000 fine for lettings agency which falsely advertised properties

A lettings agency in Hammersmith has been fined £4,000, after an investigation by Hammersmith and Fulham Council found that the agency was found guilty of advertising properties for rent that were not under its control.

Thorgills Limited of Hammersmith Grove was found to have three properties advertised on its website as available for let despite not having written instructions to market them.

Hammersmith and Fulham Council’s Trading Standards team started an investigation after receiving a complaint from a landlord, who discovered Thorgills were offering a larger property in the same development as one he was marketing, but for a lower monthly rental.

The court heard that the landlord had made his own enquiries – and discovered Thorgills had not been instructed to market the property. The landlord had to lower the rent of his own property, however, to be competitive with the agency.

The Trading Standards team uncovered two further properties on Thorgills’ portfolio being falsely advertised to let.

During the course of the investigation, officers discovered that no written instructions were made for these properties and they were subsequently removed from the agency’s website.

During a formal interview, the director of Thorgills, Benjamin Mr Madden, 32, told officers that a rogue ex-manager had been responsible for listing the properties.

The court was told both Thorgills and Mr Madden were both of good previous character – and that the rogue employee had been sacked for not following company procedures. Mr Madden added that all other rental properties where their landlords could not be contacted were removed from their website.

Acting as Thorgills Limited, Mr Madden – of Hodder Drive in Perivale –
admitted offences under the Consumer Protection from Unfair Trading Regulations 2008.

At Hammersmith Magistrates’ Court Mr Madden, representing Thorgills, pleaded guilty to four charges of unfair trading.

He admitted falsely advertising three properties available for let and personally admitted one charge of failing to comply with the Property Ombudsman Code of Practice for Residential Letting Agents, as its company director.

Thorgills and Mr Madden were fined £1,000 for each offence and ordered to pay costs of £4,800.

After the hearing, Councillor Wesley Harcourt – Hammersmith and Fulham Council’s Cabinet Member for Environment, Transport and Residents’ Services – said:

“This case serves as a warning to unscrupulous traders that the council is determined to protect our residents and local businesses.

“The case highlights that false advertising of this sort is not a victimless crime – and can result in a real loss in financial terms to our residents and businesses.”

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