Redress pioneer welcomes Government approval

As the pioneer organisation for providing redress for consumers in the residential property market, the Ombudsman for Estate Agents welcomes news of its approval to operate a redress scheme under the new Consumers, Estate Agents and Redress Act.

Membership currently stands at 12,699 branches (5,808 firms) representing around 85 per cent of residential estate agents and this percentage looks likely to grow now the CEAR approval has been received.

'The ombudsman scheme was founded almost 20 years ago and has seen membership steadily increasing in recent years as residential estate agents have come to realise the value of having a redress scheme in place,' said Bill McClintock, chairman of OEA Ltd, which operates the scheme.

'A significant majority of residential sales agencies in the UK, but especially in England and Wales, now belong to the OEA as a full member, with 7,612 branches involved in sales and 3,381 in sales and lettings. A further 953 branches cover lettings only and 753 branches (477 agencies) are registered just for their HIPs activities.

'However, agents still only registered for HIPs activities need to act before implementation expected on 1st October either to upgrade to full OEA membership or register with an Approved Scheme.

'The OEA will allow them to transfer across to full membership at no cost until their next renewal date.

'Buying agents will also be required to be part of an approved redress scheme once the law comes into effect, as will all estate agents in Northern Ireland and Scotland who do not belong to a scheme at the moment.

'Meanwhile, agents who have already become full members of the OEA need do nothing extra to comply with the new law. Consumers can be confident that where they see the familiar OEA logo they are already covered by independent redress.

'But I would just remind consumers that before they bring a dispute to the OEA they must ensure they have been through the member agent's own internal disputes procedure first. All member agents must have such a system in place.

'The Act will provide a basis for all residential estate agents to provide an approved Redress Scheme free buyers and sellers along with a number of other requirements designed to improve the service to consumers.'

End

Notes for Editors:

The Ombudsman for Estate Agents scheme offers a free, independent, and impartial service to members of the public who are dissatisfied with the service provided by an estate agent who is a member of the scheme during the buying, selling, or letting of a residential property. The Ombudsman, Christopher Hamer, can recommend member agents pay compensation of up to £25,000 in any one case.

Any decision made by the Ombudsman is binding on member agents but not on complainants, who are free to reject the Ombudsman's decision and pursue the matter in the courts if they wish.

Christopher Hamer has a strong background in ombudsman schemes, starting as private secretary to the Parliamentary Ombudsman in 1984.

Immediately prior to joining the OEA, he spent six years with HSBC as head of insurance product and distribution risk but previously he was general manager of the Personal Investment Authority Ombudsman Bureau and, before that, director of services at the Insurance Ombudsman Bureau.

The operation of the OEA scheme is supervised by an independent council with membership drawn from both consumer and industry representatives. It is chaired by Lord Borrie. As Director General of Fair Trading, he was in charge of the Office of Fair Trading from 1976 to 1992. Then known as Gordon Borrie, he became a household name and was created a Life Peer in 1995.

Lord Borrie has served on the Council of the Consumers' Association (now known as Which?) and has written on consumer law. He was also President of the Institute of Trading Standards from 1992 to 1996 and was Chairman of the Direct Marketing Authority from 1997 to 2000. He became the Advertising Standards Authority's Chairman in January, 2001.

For more information call Bill McClintock on 01794 341400 or 07836 525252

1000th firm enrolls in Ombudsman Scheme

The Ombudsman for Estate Agents scheme has reached a landmark with the enrolling of its 1,000^th estate agency firm.

The OEA was started 15 years ago, at that time to give backing to customers of the larger, corporate estate agencies. It has since been expanded to encompass a wider range of estate agency businesses, from the largest down to one office operations in small localities.

The OEA has now enrolled around 45 per cent of all the 10,600 estate agency outlets operating in England and Wales and has a smaller number in Scotland and Northern Ireland. The scheme offers estate agents’ customers compensation up to £25,000 if their complaint against a member agent is upheld. There is no cost to consumers for the service.

Under new estate agency legislation passed at the end of last year, all estate agents will eventually need to be covered by an independent redress scheme such as that offered by OEA.

“We were already beginning to see an increased level of membership enquiries before the new Act was passed,” said OEA Ltd chairman Bill McClintock, who oversees the day-to-day running of the OEA Company.

“It’s encouraging that smaller firms are now feeling more inclined to take part in the OEA. It means that consumers can employ these agents knowing full well that they have recourse to independent arbitration should there be a complaint about the service they receive.

“However, it’s also likely that these consumers will receive a higher standard of service in the first place purely because the agent they have chosen operates to the OEA Code of Practice, which ensures the best professional practices are employed by agents.

“I think that consumers increasingly realise the value of the OEA scheme and that it is a hallmark of high operating standards. Because of this, it benefits an agent if the OEA symbol can be displayed in the office.”

Colin Shairp, partner in Portsmouth-based Fry and Kent, the OEA’s 1000^th member firm, said his firm had joined the scheme because it increased the company’s professionalism. He joined the firm in 1985 and became a partner in 1990. His fellow partner is Gary Bird.

“I am already a Fellow of the National Association of Estate Agents (NAEA) and the firm belongs to the Guild of Professional Estate Agents. Joining the Ombudsman scheme seemed like a natural progression for Fry and Kent to make,” said Mr. Shairp.

“Customers look increasingly for their estate agent to be a true professional and I believe there is an increased awareness of the OEA scheme and what it stands for.

“These days business is more consumer-driven and people are very aware of their rights and the standards they can expect. Belonging to OEA and displaying its symbol in our offices tells people they will enjoy the highest standards when dealing with us.”