Council house tenant's right to buy
The Office of Fair Trading (OFT) has secured undertakings from 3 ex-directors involved in Right to Buy schemes.
Fasttrack Services Ltd had been undertaking doorstep visits to council tenants encouraging them to sign up to the Right to Buy scheme using their services along with the financial service provider FAI Finance Corporate Ltd.
The tenant's were misled into thinking that:
- the Government was going to end the Right to Buy scheme or reducing the available discount
- no fee would be payable if the house sale did not go through, and
- they would receive £500 just for signing up when in fact it was when the house sale was completed
Fasttrack also failed to leave a copy of the credit agreement with the tenant and did not tell the tenant of their rights regarding cancellation.
The OFT considered that Fasttrack and FAI had been misleading tenants and approached the former directors about the various beaches of consumer protection law. All 3 directors have given undertakings that they would not mislead consumer in the ways identified above.