PurpleBricks could have to pay £30m in compensation after putting landlords at risk of being fined.
The company’s share price has plummeted over 20 percent following the news. In a statement this morning Purplebricks announced it was delaying publishing its half-year results to provide an update on the claims. Purplebricks said: "During an internal review the company recently became aware of a process issue in how it has been communicating with tenants on behalf of its landlords in relation to deposit registrations”
It has been reported Purplebricks had failed to provide tenants with information on their deposits explaining they had been placed into a national protection scheme. This law is enforced to stop landlords from using the deposit as income and to ensure that the deposit is protected when it comes to the end of the tenancy.
The law states that if the landlord fails to register the deposit with one of the three tenancy deposit schemes within 30 days of the date on which the deposit was provided by the tenant, or if your landlord failed to inform you where your deposit was registered within 30 days, then the landlord will be liable for a financial penalty of between 1 – 3 times the deposit paid.
At Smooth Commercial Law we are not a claims management company. We are a firm of experienced solicitors and have extensive experience of claims such as these. We are able to represent you throughout the duration of your tenancy deposit claim, ensuring that your claim is dealt with professionally and expeditiously.
Smooth Commercial Law makes claiming for compensation easy:
- No Win, No Fee*
- No Upfront Payments
- An Expert Team
- Regulated and Authorised by The Solicitors Regulation Authority
Find out today if you are eligible to claim with our Smooth Commercial Law Tenancy Deposit Solicitors.
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