And their deal means they are getting money for nothing
If you knew there was a clause in the contract that said a company could charge you a thousand quid to NOT sell your business for you, would you sign? After all, there is no incentive for them to try to act like proper property agents is there? That is how RTA operates, and I’ve been reporting on their tactics for the past 13 years.
Gurdev Singh had a bad three-car crash and it became physically very hard for him to continue to run Linskill Stores in Newcastle-upon-Tyne, so he put the place up for sale with RTA four years ago.
He gave them £1,200 in marketing fees. Result? Not a single sniff.
Then last month he got a letter from them saying, in part, “it is now no longer financially viable for us to continue acting on your behalf and you should therefore accept this letter as being the necessary notice we must serve upon you in accordance with clause 2 of the agency agreement”. It further explained that this meant a withdrawal fee would be applied: £950 withdrawal fee + Vat = £1,140. Gurdev was, of course, gobsmacked.
I sent him to Trading Standards, armed with some of the stuff I had reported previously, and they wrote back that they unfortunately couldn’t help, although they had had a look online and said it would appear that RTA’s method was to do very little and then demand big amounts threatening court action. They said get legal help.
He wanted to know why isn’t there a law against this? Well, individually, you can beat them in court, as I have reported a few times. But RTA is good at what it does in terms of fleecing people and then threatening them. If you go online you can see dozens of stories of people being taken to the cleaners. What is needed is an action group (see Ezeecopy story) run by someone angry enough to mount a crusade.
As this is being written Gurdev is ringing Lawyers for Your Business for their free half-hour advice.