Milton Keynes estate agent kicked out of property ombudsman scheme over dispute

DMF Inventories Ltd (trading as DMF Sales & Lettings) has been thrown out of the scheme - owing a landlord £1,677.

In a statement from The Property Ombudsman (TPO), it said DMF failed to register the landlord’s deposit with the Deposit Protection Service, as set out in the tenancy agreement. When the management agreement came to an end, DMF also failed to release the tenant’s deposit of £1,377 to enable the landlord to register it.

Following the formal complaint by the landlord to TPO, DMF did not provide its file upon request and no response was received.

The Ombudsman made a total award of £1,677, comprising £1,377 for the tenant’s deposit and £300 compensation. DMF advised it could not make the full payment and suggested a

payment plan, but its accountant it confirmed they could not afford any payment at all.

As a result, DMF was referred to TPO’s independent compliance committee, which ruled the firm should be expelled from The Property Ombudsman scheme.

DMF is not currently registered with a redress scheme, which is a requirement of every sales and letting agent in order to trade legally. They had registered with the other redress scheme, Property Redress Scheme (PRS).

However, an agreement between the two Government-approved redress schemes means DMF is not allowed to register for any form of redress until the award is paid, therefore they have been removed and Trading Standards have also been informed of the expulsion.

Gerry Fitzjohn, non-executive director and chairman of TPO’s finance committee: “As a member of TPO, agents are obliged to comply with awards made by the ombudsman, which DMF has failed to do. Although there is little evidence to suggest the agent is still trading, we want to make consumers aware in case DMF Sales and Lettings appears to start trading again. We have advised the landlord of the agent’s status and advised that payment can be pursued in the courts.”