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Care homes firm Sunrise to refund 'up-front fees' to residents | Care homes firm Sunrise to refund 'up-front fees' to residents |
(35 minutes later) | |
Care homes operator Sunrise Senior Living will pay more than £2m in compensation to residents after charging them thousands of pounds in compulsory "up-front fees". | Care homes operator Sunrise Senior Living will pay more than £2m in compensation to residents after charging them thousands of pounds in compulsory "up-front fees". |
The Competition and Markets Authority (CMA) secured the deal for most people who had paid since 1 October 2015. | The Competition and Markets Authority (CMA) secured the deal for most people who had paid since 1 October 2015. |
People who have left or leave within two years of moving into one of the company's homes are eligible. | People who have left or leave within two years of moving into one of the company's homes are eligible. |
If the resident dies in this timescale, their family will receive the money. | If the resident dies in this timescale, their family will receive the money. |
The average individual payout will be about £3,000 on average. | The average individual payout will be about £3,000 on average. |
The move comes as part of the CMA's continuing investigation into how some care homes charge for their services. | The move comes as part of the CMA's continuing investigation into how some care homes charge for their services. |
This led to concerns that the care home group's description of its "up-front fees" and how it would be used was unclear. | This led to concerns that the care home group's description of its "up-front fees" and how it would be used was unclear. |
Moreover, prospective residents were having to pay out before they had secured a place at the home. | Moreover, prospective residents were having to pay out before they had secured a place at the home. |
The CMA also raised concerns that the fee was non-refundable once someone had lived in the home for more than 30 days. | The CMA also raised concerns that the fee was non-refundable once someone had lived in the home for more than 30 days. |
'Particular vulnerability' | |
George Lusty, the CMA's senior director for consumer protection, told BBC Radio 4's Today programme: "We think this is a really good outcome. | |
"It's a time of particular vulnerability for anyone who's looking around for a place in a care home and we are particularly concerned that residents get clear information that allows them to make a good choice about the right place for them at a difficult time." | |
He added: "We hope that this news will act as a spur to others to make sure they are doing the right thing by residents." | |
Mr Lusty confirmed that the CMA was looking into other similar cases at the moment. |