SUMMER 2024 Project to ensure lettings agents are protecting clients money goes into its third year and moves to a new area A project to ensure that letting agents have taken steps to protect landlords and tenants money has completed its second year. Operation Jupiter is government-funded, and the first year involved authorities getting their internal systems ready to conduct enforcement work, so they could issue penalty notices for non-compliances. It is important that agents have CMP, as it ensures that, if the business fails for any reason, landlords still get the money collected from tenants The focus of the project is to ensure letting agents are registered with the government-approved Client Money Protection [CMP] scheme and one of the two approved redress schemes. They should also display their CMP certificate online and face a penalty charge if they do not. This year, Operation Jupiter was being carried out in the local authority areas of Coventry, Dudley, Shropshire, Staffordshire, Warwickshire and Wolverhampton. A total of 366 lettings agent websites were inspected, and 43% were found not to be displaying their CMP certificate or had failed to renew their membership. Some agents had never registered with the CMP, even though it has been a requirement since 2019. The value of the 51 final notices issued was just less than 500,000. This may change, however, as some notices have been appealed. It is important that lettings agents have CMP, as it ensures that, if the business fails for any reason, landlords still get the money collected from tenants. By tackling these non-compliant agencies, we have prevented a potential detriment of more than 8.5m, which is what could be lost if letting agents did not hand over the money they have handled to the relevant parties, including not registering deposits. One agent was served a penalty charge for not having redress membership, which has been a requirement since October 2014. Letting agent redress schemes can solve disputes between the agents and their customers instead of using the courts. The third and final year of the project has just started focusing on Birmingham, Sandwell, Telford & Wrekin, Walsall, and Worcestershire authority areas. Credit: Martin Harland, Trading Standards Officer Image: iStock.com / erhui1979 Anonymous Hotline For further information, please contact your local Trading Standards Service For up-to-date news stories and information, follow us on 0300 303 2636 Is your sector being undermined by unscrupulous traders operating outside the law? Report them via Trading Standards Anonymous Hotline or online and help level the playing field for honest businesses.