Client Money Protection (Declined) as a letting agent – help?

Client Money Protection (Declined) as a letting agent – help?

10:01 AM, 2nd August 2021, About 2 months ago 7

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Hi all, I recently started a letting agency. I registered my company in 2018, but didn’t really do anything until late 2019. I have only been doing let only for the time being until I branched out into management.

My let only was slightly different as I only stopped after introducing the tenant and doing the agreement – I wasn’t involved in management etc. Client Money Protection (CMP) wasn’t needed at this point. I’m in the process of offering full management and doing full let only.

I then went to apply for CMP with CMP themselves, and they have not offered us membership due to working capital being negative.

I need CMP desperately – what can I do, as I believe other providers won’t accept you if you’ve been refused elsewhere?

Looking for solutions, please.

Luellal



Comments

by Mark Alexander

10:57 AM, 2nd August 2021, About 2 months ago

You need to correct your negative working capital position. In other words, invest into your business or stop doing business as an agent illegally.

by BernieWales

11:46 AM, 2nd August 2021, About 2 months ago

Perhaps you could team up with someone already protected?

by Graham Bowcock

11:52 AM, 2nd August 2021, About 2 months ago

You may also struggle to get a clients' account from a bank. After years in the business I had a new start letting agent last year and the banks are not at all keen on offering clients' accounts - despite an excellent personal track record (and RICS membership). We had to define our AML policies to the bank; our main bank were not very helpful. We did eventually get an account, but had to be persistent.

by Mark Alexander

12:18 PM, 2nd August 2021, About 2 months ago

Reply to the comment left by BernieWales at 02/08/2021 - 11:46
Teaming up with someone who is already covered is a great idea.

I suggest a call to Chris Sheldon who is the Managing Director at LettingSupermarket.com - Free phone: 0800 098 8844

by BernieWales

12:20 PM, 2nd August 2021, About 2 months ago

Reply to the comment left by Graham Bowcock at 02/08/2021 - 11:52
Metro Bank > Southampton Row, London > Iain Cameron

by Graham Bowcock

12:35 PM, 2nd August 2021, About 2 months ago

Metro Bank were recommended to me and I tried them. Unfortunately the theory was better than the practice. It was taking a long time to make progress and I'm not sure the manager really understood the concept of a clients' account.

by BernieWales

14:01 PM, 2nd August 2021, About 2 months ago

Reply to the comment left by Graham Bowcock at 02/08/2021 - 12:35
That's why I mentioned a specific name, Graham.


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