A Dudley-based estate agent who lost a tribunal appeal has been hit with a hefty fine, following a case brought by Dudley Council’s trading standards team.
Andrew Cole, trading as Andrew Cole Estates, was fined £14,000 for breaching client money protection regulations between January and August 2023, with a further £1,500 for failing to publish required fee information on his website in January 2023.
The First-tier Tribunal heard that Cole had operated without a valid client money protection scheme membership for almost five years at the time of the penalties, with his RICS registration having lapsed in May 2018.
Cole stepped away from the business for 20 months between September 2019 and January 2023 to care for a relative, and he argued breaches had resulted from mismanagement during that period. He claimed he believed client money protection was in place through Propertymark membership, but he only held an individual membership that did not offer client money protection cover.
Although Cole claimed he had sold the lettings side of the business and was winding up operations, he claimed the business could not afford the fines due to £34,000 in bounce-back loans, rent arrears of £4,000 and other debts. However, when Dudley Council’s trading standards officer visited the premises in November 2023, staff confirmed Cole remained the owner with no evidence of any sale.
Cllr Phil Atkins, cabinet member for trading standards and environmental health, said: “This investigation, which was undertaken by our trading standards team, demonstrates the importance of ensuring compliance with appropriate regulations designed to protect tenants.
“The regulations give tenants and landlords confidence that their money is secure and that they have access to dispute the issue if needed. Agents who fail to comply and put tenants at risk, will face the consequences.”
