You will remember that last week I wrote a blog on the fact that the OFT had decided to take a much closer look at the practices of sale and rent back companies.
This was an area that I believe has been cause for concern for quite some time and it appears the OFT agrees. They made three recommendations to the government regarding these companies:
– Compulsory Regulation.
– Increased consumer awareness through education.
– Improved information about housing benefits.
From there the government has launched an extensive consultation period but so worried is the OFT about the actions of some of these companies that they also recommended that something needed to be done in the interim.
Housing Minister, Margaret Beckett said: “These new proposals will help to protect vulnerable consumers at risk from unscrupulous companies seeking to exploit households in the current climate.”
In the meantime there is no news yet on the 16 leaseback companies that the OFT issued with orders to explain and substantiate the claims in their adverts, despite the fact that their fourteen day period is drawing to a close.
It will be interesting to see how they respond and what, if any, punishment the OFT levels at them. News should start to come through about that in the next few days.
