Client Money Protection Scheme
What is a Client Money Protection scheme?
It is a legal requirement for letting agents to join a Client Money Protection Scheme for the benefit of their clients, typically tenants and landlords, in order to safeguard money they hold on their clients’ behalf. In the event that the owners of the business steal or misappropriate any of this money there is a route of redress against the letting agent by contacting the Scheme and claiming against the Scheme. If a genuine claim is accepted by the Scheme, the Scheme will recompense the landlord or tenant and seek recovery from the letting agent or its owners.
A Client Money Protection scheme does not act on behalf of the letting agent. It is an independent membership body that provides the protection of client money whilst held by its members and the Scheme insures its liability for the payment of any claims.
By selecting Crown Sales & Property Management Services Limited as your letting and management agents, landlords do not have to worry about any issues relating to the CMP. We are members of The UK Association of Letting Agents (UKALA). The UKALA is a professional membership body which supports its agents to comply with the ever-changing regulatory environment. With our experience and knowledge in this area, our consultants will carry out every step of the process with the landlord and tenant, fully complying to the legal requirements ensuring the deposit is fully protected and safe-guarded.
The UK Association of Letting Agents – Client Money Protection (CMP) Guarantee
Who is Covered:
Clients (landlords and tenants) of any current UKALA Member at the time of loss.
What is Covered:
Client Money held by a UKALA Member on behalf of a Client.
What is the limit of cover:
The total of the Client Money which was being held by the UKALA member on behalf of the claimant.
The claimant must notify UKALA in writing of the loss within 3 months of becoming aware of the loss.
What is not covered:
Money which can be recovered from the UKALA member or another scheme or insurance.
Burden of Proof:
In order to establish proof of the loss:
i) All and any information requested must be provided promptly and in any case within 28 days.
ii) UKALA may require the claimant to be involved in legal proceedings against the UKALA member.