Estate Agent's Refund Chequed Bounced - What Are My Rights?

[DK32UK]

Apologies for the length, but any advice would be appreciated

I was owed a part-refund payment on the contents insurance policy I had taken out via the estate agent (their ‘rules’ for taking on a tenancy through their agency I was told at the time). 1 month and a bit before departing the property (late June 2006) I contacted the insurance company requesting the part-refund. They told me the estate agent had to do this on my behalf. After being passed back and forwards between the two the estate agent eventually took responsibility and requested the part-refund on my behalf. By the time I had moved out of the property (late July 2006) I had not received the part-refund so began chasing the estate agent. It took 2 months of requesting the part-refund and chasing the payment. 1 month after leaving the property (August 2006) I gave up chasing.

In March 2007 I chased the insurance company for the part-refund in writing. They replied and said the estate agent had it and that as the agent didn’t have a forwarding address for me (which is true, although they have my mobile and then work number) it couldn’t be posted. The insurance company passed on my address to the estate agent without my permission and within a week I received a cheque from the estate agent. I paid the check in and it appeared to have cleared within 8 days. I immediately cashed it and 6 days after the cheque turned up unpaid in my account. As I had no other funds in the account I received a paid referral fee. I haven’t yet contacted the insurance company or the estate agent, but I have a letter prepared with copies of bank statements and call lists explaining the situation and requesting the cheque be sent again. I have noticed the part-refund started 1 month after the time I had requested it as that was when the cheque was dated, hence why it bounced as it had obviously expired!!!

Am I within my rights to ask for the part-refund to be paid from the exact date I moved from the property (I gave them over a months notice and requested the part-refund at the same time). Also, am I within my rights to ask the agent to offer some compensation or to pay the referral fee I have incurred?

I’ve left this a bit late and have 10 days before the 8 week deadline is up. After this the insurance company will close the case. When I first contacted the insurance company they advised that I could contact the Financial Ombudsmen.

I’m not sure if to request the cheque/compensation again from the agent or just go straight to the FO?

Thanks!

[Aequitas]

It's simple. All the history and time limits are now irrelevant. The agents sent a cheque and it bounced. You can sue on the cheque. Do it through the small claims procedure.

[DK32UK]

Thank you for the advice Aequitas, much appreciated!

[CAGisforME]

If the cheque was dated more than six months before you paid it in then technically it didn't bounce!

It was simply not valid anymore.

Isn't it possible that the agents, having been given an address for you, after several months, sent you the cheque and didn't check the date?

I would give them a call and ask them to re-issue it before getting involved in a court claim that could be avoided by a simple telephone call.

[DK32UK]

Hi there

I haven't taken the small claims procedure route as the cheque wasn't for a huge amount and I would be paying out more than its worth, but am now aware this route is available! I've writen off to the insurance company who were aware of the situation hoping that they will liaise with the agent. The agents are'nt very nice to deal with. They used all of my deposit money for re-advertising fees. I signed up for a tenancy for 1 year, got sick and had to move after 6 months, hence re-advertising. My landlord pleaded with them to return the deposit, but they would'nt budge. Also, they only sent one person round to view and I did the showing so not quite sure what they used the £650 for bar advertising on the net. All that's in the past now and I understand they wouldn't be able to do this with the new rent deposit scheme in force!! The insurance company did advise to contact the financial ombudsmen, but was hoping that could be avoided. Obviously the cheque wasn't checked for expiry by the agent and I didn't question it as I was desperate for some cash. Living on a shoestring has it's advantages on occassion, but none were apparent at that time!!

Thanks for posting! I wait in anticipation

[CAGisforME]

I can't comment on anything you have said about the letting agent etc etc. I can only comment from my field of expertise.

IF the cheque was dated more than 6 months ago it is now invalid. It didn't bounce, it's out of date. It would be the same if you wrote a cheque and someone tried to draw on it after 6 months had passed.

I honestly think that either a letter or a telephone call to let them know that, due to them not having an address for you, the cheque is now invalid and needs to be re-issued, should be enough.

I was trying to help you avoid costly litigation that would be incorrect, as the cheque didn't bounce, and would cause you unnecessary worry etc. Try calling them.

Hope that clears it up.