The position set out below is based on facts as known to the OFT at this point in the investigation – as the investigation develops, new information could cause the OFT's views and intentions to change.
The OFT continues to actively investigate the use of contract terms requiring owners of retirement homes to pay fees on the sale or other disposal of their properties. The investigation now focuses on terms used by a reduced number of the firms originally approached by the OFT. The investigation into the other firms is on hold.
The OFT continues to receive information and views from the firms it is actively investigating. It wants to make sure that it thoroughly considers the many complex legal and economic arguments raised.
The outcome of the overall investigation is not yet known. If the OFT concludes that some firms have used terms that are unfair for the purposes of the UTCCRs, the investigation may nonetheless conclude without formal enforcement proceedings. This would be on the basis that the OFT is able to obtain suitable commitments addressing its concerns from the firms that it has continued to investigate. However, there can be no guarantee that a resolution will be achievable on this basis.
If the OFT decides to take court action, its action will take longer to reach a conclusion.
As a result, the OFT cannot give a definitive deadline by which the investigation will be concluded. It continues to endeavour to progress the investigation as efficiently and fairly as possible.
The decision to continue to actively investigate a firm or to put a particular investigation on hold does not mean that the OFT considers that any particular firm either has, or has not, breached the UTCCRs. These decisions have been taken with the aim of ensuring that the OFT's investigation is run in the most effective and timely way, on the basis that the findings from the active investigations will read across more generally to the investigations currently on hold.
The outcome of the overall investigation is not yet known. It may be the case that:
If the OFT concludes that some or all firms have breached the UTCCRs, the investigation may conclude more speedily if the OFT is able to obtain suitable undertakings from the firms that it continues to investigate. By undertakings we mean a commitment given from a firm to the OFT which addresses the OFT's concerns. However, given the range and complexity of views provided to the OFT to date there can be no guarantee that a resolution will be achievable on this basis.
If the OFT decides to take court action, such action will take time to reach a conclusion.
As a result, we cannot give a definitive deadline by which the investigation will be concluded. We continue to endeavour to progress the investigation as efficiently and fairly as possible.
The OFT does not, for the moment, propose in this investigation to assess the fairness of the exit fee terms by comparing the amount of fee that is payable against the service(s) a firm may offer in return.
The OFT is considering a wider set of circumstances including the information provided to the consumer during the sales process, whether the firms made the charges known to the consumers and whether consumers clearly understood the liability and took that into account in purchasing the lease.
The OFT cannot provide advice on individual cases and cannot say with certainty that the findings it makes at the end of this investigation will apply to your particular lease.
If you would like help resolving your dispute through mediation, you may wish to contact SCRC Mediation Services: Solutions to Conflict in Retirement Communities. They can be contacted at 020 3327 0366 or via their website at www.scrc-mediation.co.uk.
For consumers who require general advice on leasehold matters in Retirement Housing, you may wish to call the Age UK advice line (0800 169 6565) or alternatively the FirstStop advice line (0800 377 7070).
Team Leader
Mike Lambourne (020 7211 8568, mike.lambourne@oft.gsi.gov.uk)
Project Director
Jason Freeman (020 7211 8262, jason.freeman@oft.gsi.gov.uk)
Senior Responsible Owner
Robert Laslett (020 7211 5951, robert.laslett@oft.gsi.gov.uk)
Media enquiries
Any media enquiries should be directed to a member of our Press Office.
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