Client Money Protection:
With the introduction of mandatory client money protection from April 2019, Hamilton Fraser is announcing a joined up approach to its group companies; the Property Redress Scheme (PRS) and CMProtect (CMP).
With the mounting commercial pressures on letting agents, the partnership will deliver a more effective and convenient solution for client reassurance. In particular the 10,000 (and rising) members of the PRS will have access to preferential rates as well as a simplified membership process.
CMP, launched in 2014, is a membership scheme that focuses purely on protecting client money – an insurance service that until then was only available to agents that were members of an industry trade body.
In the event that a letting agent becomes insolvent or cannot return the client money, the landlord or tenant contacts CMP and they deal directly with them, reimbursing their losses where appropriate. By being a member of CMP letting agents’ clients obtain this very important protection from an acknowledged expert in the private rental market.
CEO of Hamilton Fraser, Eddie Hooker said:
“The Property Redress Scheme and CMProtect go hand in hand by giving consumers the reassurance that their relationship with their agent, whether financial or service wise is protected. Irrespective of what happens, the client’s money will be safe.
“A large proportion of the PRS membership do not have this important protection and subject to obtaining a government licence to operate a scheme we will ensure that all of our letting agent members across our group of companies fully comply with the forthcoming law. By using this group approach we can deliver the benefit at an even more affordable price. ”
As part of the partnership CMP are offering PRS members a special rate on CMP starting at £199 plus VAT (per annum) until 1st October 2018 compared to the normal rate of £299 for agents holding less than £100k of client’s money.
Based in Borehamwood, Hamilton Fraser, (parent company to Property Redress Scheme, CMP, Total Landlord Insurance, mydeposits, and Landlord Action) has been providing specialist insurance and ancillary services for the private rented sector since 1996.
The Property Redress Scheme
The Property Redress Scheme (PRS) is a straightforward and easy to use consumer redress (ombudsman) scheme for Property Agents and Professionals. The main purposes of the Property Redress Scheme are to allow Agents to comply with their legal requirement to be a member of a government authorised consumer redress scheme and to settle or resolve complaints made by consumers against our Members. Our Members and consumers will both benefit from our simple three stage process to resolve the complaint:
- The Member will first be given an opportunity to resolve the complaint directly
- The PRS offers a mediation service
- The PRS Ombudsman will make a binding decision on the complaint
Client Money Protect
Client Money Protect (CMP) is a client money protection Membership designed to protect client money held by Property Agents and Professionals. The Member’s clients are protected in the event that the Member misappropriates the client money held in the course of running their business. Our Members and consumers will both benefit from our simple Membership and claim processes.
All Property Agents and Professionals can apply to become Members. The application process requires the completion or an application form and a client money questionnaire. Provided the applicant passes both and pays the Membership fee they can then become a Member. There is an annual renewal.
There is a three stage process for the Member’s clients to make a claim to CMP:
- They must be owed money by the Member.
- They must have reported the theft of the client money to the police.
- They must complete the CMP claim form.
If CMP are satisfied there has been a theft of the client money then CMP will reimburse the client. The limits are £500,000 per Member and £25,000 per individual.