You are here: Home - News -

Lettings boss banned after spending tenants’ deposits

by:
  • 15/01/2020
  • 0
Lettings boss banned after spending tenants’ deposits
The boss of a collapsed lettings business has been disqualified from being a director for six years after her failure to protect the deposits of tenants was revealed.

 

Kelly Louise Forrester of Exeter was appointed director of Clear Lettings when the firm was incorporated in 2007. 

Between June 2016 and April 2019, Forrester failed to safeguard more than £68,000 worth of tenants deposits, connected to at least 54 properties. Rather than pay them into a deposit protection scheme, as required by the law, she instead used the money on the general running of the company.

This was discovered after Clear Lettings went into liquidation in April last year and the Insolvency Service began its investigations into the business and the conduct of its staff.

Forrester did not dispute that she had caused the firm’s failure to ensure that deposits were safeguarded, and so has now been banned from acting as a director or being involved, without the permission of the court, in the promotion, formation or management of a company.

Dave Elliott, chief investigator for the Insolvency Service, said that Forrester’s actions had resulted in financial losses for both landlords and tenants.

He added: “Her conduct fell short of what is required of a director of a limited liability company and her disqualification will act as a deterrent to others from similar conduct in the future.”

 

There are 0 Comment(s)

You may also be interested in

Privacy Preference Center

Read previous post:
IMLA forecasts larger broker market share and lending to hit £268bn

Gross mortgage lending is forecast to grow by 1.4 per cent to £268bn this year, according to a report by...

Close