Care UK have been issued court proceedings by Care UK after it refused to refund residents who had to pay a compulsory upfront fee.
In December 2018, the CMA told Care UK that it must refund more than 1,600 residents who were charged an ‘administration’ fee or face legal action. This fee was as much as £3,000. CMA believed the provider was breaking consumer protection law by requiring a substantial non-refundable administration fee from residents for which they received no services or products in return. The description of the charge and what it was for, was believed to be misleading by CMA and also that the residents were told about the fee too late in the admission process.
As a result of CMA not agreeing to refund the residents (they have stopped charging the fee) the CMA has issued court proceedings and is now seeking a court order to secure funds for those affected.
It will be left to the court to decide if the provider has breached consumer protection law.
CMA issued advice in November 2018 to help care homes understand their responsibilities under consumer protection law.