Three firms expelled by TPO after failing to pay penalty awards

The Property Ombudsman (TPO) has expelled an auctioneer and two agents for failing to pay penalty awards.

BP Auctions, David Key Property Limited and Leonard D Morgan & Co were all referred to the TPO’s compliance committee, which ruled they should be excluded from the scheme.

Marketing failures

Auction house BP Auctions, based in Birmingham, was involved in a dispute over two flats that were not advertised in line with consumer protection regulations.

TPO ruled £8,000 was due because of BP Auctions’ marketing failures. The firm has two other unpaid awards from upheld complaints.

Sub-tenants

David Key Property, of Haringey, North London, took over a property portfolio which included a Guaranteed Rent Agreement, but failed to remove sub-tenants.

The agent also ceased its involvement with the property, including making rent payments to the landlord, and an award of £4,000 was made.

Rent dispute

In a dispute involving Leonard D Morgan & Co based in Newport, Wales, a landlord claimed the agent failed to regularly transfer rent received from their tenant.

Despite saying that all rent due had been paid to the landlord, the agent failed to provide evidence. The firm is dissolved according to Companies House records, but its website is still live.

TPO supported the complaint, and made an award of £1,000 to the landlord, which was never paid.

Expulsion is a last resort as we want to work with businesses.”

Rebecca Marsh, The Property Ombudsman (main picture), says: “Expulsion is a last resort as we want to work with businesses to ensure consumers get the awards they are rightly entitled to and to help agents improve practice.

“We try every avenue to ensure that awards are settled and thankfully in 99% of upheld complaints, the dispute is resolved with a compensatory payment for the consumer where appropriate.”

In 2024 to date, only three businesses have been expelled by the TPO compared to 13 last year.