Purplebricks is refusing to say how many landlords were affected by its failure to comply with the law requiring tenants’ deposits to be placed in a government-backed tenancy deposit scheme.
It is also refusing to say how long tenancy deposits were held by the agency before they were eventually placed in an approved scheme.
The refusal to answer these questions follows the revelation that an unknown number of deposits taken from tenants by Purplebricks were not registered with any one of the three government-backed schemes operated by MyDeposits, Deposit Protection Service and the Tenancy Deposit Scheme.
It is reported that some landlords could face penalties due to Purplebricks’ error if it emerges that the deposits secured were not protected with a government recognised scheme within 30 days - Purplebricks is refusing to tell Landlord Today whether that was the case.
A statement from the agency to Landlord Today says: “Due to the introduction of a new lettings IT system, a small number of tenant deposits were not paid into an authorised deposit scheme. As soon as we identified this issue, we took action and have now registered these deposits. We are currently communicating to the affected landlords and tenants.”
A spokeswoman adds: “We won’t be answering any other questions.”
Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.