Menu
08/09/2009
OFT Investigates Retirement Home Exit Fees
The Office of Fair Trading (OFT) is issuing formal written notices to 26 retirement home firms setting out concerns over fees charged when residents sell or rent their properties.
The OFT is concerned in particular about the fairness and clarity of contract terms providing for these so-called 'exit fees', charged to occupants of purpose built retirement homes which may breach the Unfair Terms in Consumer Contracts Regulations.
The firms are being given 14 days to respond. The OFT is also seeking information and views about the terms from residents, consumer groups and other interested parties. Once all parties have provided their input the OFT will decide how to proceed.
The investigation follows voluntary undertakings secured from a major builder of UK retirement apartments, McCarthy and Stone, to remove an exit fee charging consumers one per cent of the sale price when a property is sold.
Heather Clayton, OFT Senior Director of Consumer Protection, said: "This investigation is motivated by the need to ensure that terms and conditions are clear and fair, particularly in this sector where customers are potentially vulnerable. We know there are concerns and will consider all responses and evidence from interested parties on these issues."
(CD/GK)
The OFT is concerned in particular about the fairness and clarity of contract terms providing for these so-called 'exit fees', charged to occupants of purpose built retirement homes which may breach the Unfair Terms in Consumer Contracts Regulations.
The firms are being given 14 days to respond. The OFT is also seeking information and views about the terms from residents, consumer groups and other interested parties. Once all parties have provided their input the OFT will decide how to proceed.
The investigation follows voluntary undertakings secured from a major builder of UK retirement apartments, McCarthy and Stone, to remove an exit fee charging consumers one per cent of the sale price when a property is sold.
Heather Clayton, OFT Senior Director of Consumer Protection, said: "This investigation is motivated by the need to ensure that terms and conditions are clear and fair, particularly in this sector where customers are potentially vulnerable. We know there are concerns and will consider all responses and evidence from interested parties on these issues."
(CD/GK)
Related UK National News Stories
Click here for the latest headlines.
13 January 2011
'End Of The Line' On Retirement Age
The Government has today confirmed that it will remove the Default Retirement Age (DRA) so that people have more choice when to stop working. As well as benefiting individuals, the freedom to work for longer will provide a boost to the UK economy.
'End Of The Line' On Retirement Age
The Government has today confirmed that it will remove the Default Retirement Age (DRA) so that people have more choice when to stop working. As well as benefiting individuals, the freedom to work for longer will provide a boost to the UK economy.
17 August 2005
Government recommends care home changes
A Government's action plan to improve the quality of care home services has been welcomed as a "positive response" by the OFT. However, consumer group 'Which?' prompted the original OFT inquiry, has criticised the proposed reforms as "vague" and called for more detail to be included.
Government recommends care home changes
A Government's action plan to improve the quality of care home services has been welcomed as a "positive response" by the OFT. However, consumer group 'Which?' prompted the original OFT inquiry, has criticised the proposed reforms as "vague" and called for more detail to be included.
28 June 2011
OFT To Take Action Over Passenger Surcharges
The OFT has put passenger travel companies on notice to change misleading debit and credit card surcharging practices or face enforcement action under consumer protection laws.
OFT To Take Action Over Passenger Surcharges
The OFT has put passenger travel companies on notice to change misleading debit and credit card surcharging practices or face enforcement action under consumer protection laws.
16 April 2010
£225m Tobacco Price Fixing Fine
Two tobacco manufacturers and ten retailers have been fined a total of £225m by the Office of Fair Trading (OFT) for engaging in unlawful practices in relation to retail prices.
£225m Tobacco Price Fixing Fine
Two tobacco manufacturers and ten retailers have been fined a total of £225m by the Office of Fair Trading (OFT) for engaging in unlawful practices in relation to retail prices.
18 May 2005
Improvement needed in care homes information, study claims
Older people should have access to a ‘one-stop-shop’ providing information on care home provision, the Office of Fair Trading (OFT) has recommended. The OFT also said that care home residents should have better access to complaints procedures and be provided with greater price transparency and fairer contract terms.
Improvement needed in care homes information, study claims
Older people should have access to a ‘one-stop-shop’ providing information on care home provision, the Office of Fair Trading (OFT) has recommended. The OFT also said that care home residents should have better access to complaints procedures and be provided with greater price transparency and fairer contract terms.
-
Northern Ireland WeatherThis Evening and Tonight:A mainly dry evening and night with isolated showers dying out and some longer clear spells. Then it will cloud over towards morning with some heavy showers. Minimum temperature 7 °C.
