The information below on the OFT's investigation into exit fees is based on the OFT's views and intentions at this point in the investigation – as the investigation develops, the OFT's view may change.
The OFT continues to receive a wide range of views from the firms that we are investigating and other interested parties. We are obliged to thoroughly consider these views which will continue to take some time as many complex legal and economic arguments have been raised.
To make the investigation more efficient, we have narrowed the investigation by deciding to continue to actively investigate only some of the original firms involved and put the investigation of some of the other firms on hold.
Any decision to continue to actively investigate a firm or to put a particular investigation on hold does not mean that the OFT considers that firm has, or has not, breached the UTCCRs - these decisions have been taken on the basis that it is the most effective and timely way of running the investigation given that the likelihood is that the findings from the active investigations should read across more generally to the investigations currently on hold.
Likely next steps and timescales
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.
Clarification of the OFT's position
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.
Your individual case
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.
You may wish to contact Age UK, and in particular their Advice, Information and Mediation Service (AIMS), as they should also be able to offer you some advice. They can be contacted at:
Age UK
Advice Services
Astral House
1268 London Road
London
SW16 4ER
Tel: 0800 169 6565
www.ageuk.org.uk/home-and-care/housing-advice-service
Previous updates
Team Leader
Jennifer West (020 7211 5823, jennifer.west@oft.gsi.gov.uk)
Project Director
Simone Higgins (020 7211 8173, simone.higgins@oft.gsi.gov.uk)
Senior Responsible Owner
Heather Clayton (020 7211 8826, heather.clayton@oft.gsi.gov.uk)
Media enquiries
Any media enquiries should be directed to a member of our Press Office.
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