Fast Track wound up over right to buy

A company that targeted householders in Rochdale in an attempt to get them to sign up for the right to buy their council houses has been wound up by the Official Receiver after they attempted to buy council houses without residents' consent.

Door to door canvassers working for Fast Track visited tenants in the Rochdale area late last year with promises of free DIY vouchers if they signed up to the Right to Buy scheme. However, tenants reported that the vouchers never arrived and said that they only signed a form agreeing to ‘look into’ the scheme.

Tenants that had signed were shocked to learn that Fast Track had begun the process of buying their homes on their behalf without their consent. Many complained that the company had also paid out large premiums to insurance companies without their knowledge or consent. The premiums were intended to afford protection to Fast Track in the event that a tenant’s right to buy did not proceed.

Having complained to the company, a number of tenants were faced with documents issued by FAI Finance, who claimed that Fast Track customers had signed credit agreements which would allow them to collect payment if the tenant did not proceed with the process.

Rochdale Boroughwide Housing (RBH) found out about this and sought help for the affected tenants from the council’s Trading Standards Team, who, along with RBH, gathered evidence which was sent off to the Office of Fair Trading.

In March this year the Secretary of State for the Department of Business, Enterprise and Regulatory Reform petitioned for the appointment of the Official Receiver as Provisional Liquidator on the grounds that it was in the public interest to do so following an investigation carried out by Companies Investigation Branch. Fast Track Services Ltd, company number 05109352 was wound up in April.

Rochdale Council’s Deputy Leader, Councillor Irene Davidson said: “I am delighted with the outcome of this case. Our officers worked exceptionally hard in partnership with RBH to get this result. I would urge any tenant who took out the right to buy after talking to Fast Track Services to get in touch with us. Many could be paying insurance that was taken out to cover Fast Track if the right to buy fell through. We’ve been told that some may no longer have to pay insurance premiums if tenants took out the right to buy after the company went into liquidation. But it’s not straightforward, so tenants need to get advice from the council’s trading standards team before stopping any payments.”

Tenants who went ahead with the right to buy using mortgage brokers arranged by Fast Track do not need to worry about their mortgages and none of the brokers involved is implicated.

FAI Finance Corporation Ltd the financial loans company behind Fast Track Services was wound up in February 2008 with losses of £36m up to December 2007 and negative net assets of £32m.

Anyone who would like more advice and information should contact the Council’s Trading Standards Team on 08454 040506.