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Home loss fears as rent collection agency closes doors
Tenants and landlords fear they could lose tens of thousands of pounds after an estate agency suddenly closed its doors.
Concern is today growing over the future of Town and Country Estates, in Sunderland, after the company wrote to clients informing them it has ceased trading with immediate effect.
The firm, which is understood to have more than 100 customers, managed properties for landlords by collecting rent and retaining bonds.
It is thought some tenants paid up to six-months rent in advance.
The closure follows a decision by the Financial Services Authority (FSA) earlier this year to withdraw permission for the company to continue carrying out "regulated activities".
The letters from Town and Country went out a week ago, but some customers claim to have been told the Chester Road premises have been shut for some time.
The property stands empty and telephones unanswered.
All week, worried landlords and tenants have contacted the Echo.
One landlord, who wished to remain anonymous, said he fears he will lose the 2,500 which he paid the company to manage a buy-to-let-property.
The 55-year-old small businessman from Sunderland told the Echo: "I've no idea what I'm going to do. I don't have a lot of money and I bought the property for my retirement. We've contacted a solicitor, but the cost of bringing a civil case would probably be more than we're owed.
I've tried to contact them by post and email, but I've had no response."
One landlady said she only had one property with the firm, but a friend of hers who had more properties managed by Town and Country feared she could lose thousands.
"My tenant paid them a 500 deposit and whether I get that back is another matter," she said. "Fortunately I had only been in to pick up the last month's rent a couple of weeks ago."
She said she had no idea where the bond paid for by the tenant was being held and she would have to pay that back regardless of whether she saw the money herself or not.
One new mum who lived in a property managed by Town and Country is not only worried she will lose out on the rent and deposit she had paid, but also about losing her home.
"I don't know if the contract stands as it's with Town and Country, it isn't with the landlady direct," she said.
"This isn't what I needed at the moment when I've got a two-week old baby to look after."
In February, the FSA issued the company's registered owner a final notice about a decision to cancel the permission granted to him to carry on regulated activities.
Today, the independent non-governmental body, which regulates the financial services industry, confirmed its authorisation had been formally withdrawn.
It stated the company had failed to submit last year's Retail Mediation Activities Returns (RMAR), which are used to help the FSA monitor firms' capital adequacy and financial soundness.
The notice stated: "You have not been open and co-operative in all your dealings with the FSA, in that you have failed to respond to the FSA's repeated requests for you to submit the RMAR, and have thereby failed to comply with the FSA's principles for businesses and to satisfy the FSA that you are ready, willing and organised to comply with the requirements and standards under the regulatory system.
"These failures, which are significant in the context of your suitability, lead the FSA to conclude that you are not conducting your business soundly and prudently and in compliance with proper standards, that you are not a fit and proper person, and that you are therefore failing to satisfy the threshold conditions in relation to the regulated activities for which you have permission."
Bosses at the company have been unavailable for comment.
Northumbria Police are aware of the situation but are treating it as a civil matter while Trading Standards has yet to receive any complaints about the company.
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Friday 10 February 2012
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