This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-44050678
The article has changed 9 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| 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. |
| Last November, the watchdog found that as well as charging the "up-front fees", some care homes were also billing families for weeks after their relatives had died. | |
| It also highlighted how those paying for themselves were paying much higher charges than council-funded residents. | |
| The average weekly charge for self-funders was £846 - 40% more than local authority rates. | |
| 'Good outcome' | |
| In the Sunrise case, the CMA was concerned 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. |
| 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. | 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." | "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." | 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. | Mr Lusty confirmed that the CMA was looking into other similar cases at the moment. |