The decision made by a care homes group to reimburse residents who paid upfront fees has been welcomed by the Competition and Markets Authority (CMA).
Sunrise Senior Living Ltd. have decided to give money back to the majority of residents who paid the fees from 1 October 2015, after it emerged that the description of the cost and how it would be used was not clear. The compensation will apply to residents who have already left or leave within two years of moving into a home. In situations where the resident passes away within this time frame, the payment will be made to the family.
The decision is part of the regulator’s continuing investigation into the costs which care homes charge, which questioned the upfront nature of the fee for Sunrise’s residents as well as the fact that it became non-refundable once they had lived there for 30 days or more.
In addition to the average reimbursement of £3,000, legally binding commitments have been provided by the care home group to prevent them from charging the upfront fees in future. The group has also agreed to abide by new guidance which is soon to be finalise and issued after a consultation. Released by the CMA, this relates to the charging of fees once a resident has died.
Commenting on the decision was George Lusty, the CMA’s Senior Director for Consumer Protection. He said: “Care home residents shouldn’t be required to pay out thousands of pounds without being clear what they’re getting for their money. So, it’s only right that residents at Sunrise care homes will now receive compensation if they’ve paid these fees, and that future residents won’t have to make such payments at all.
“The CMA welcomes Sunrise’s constructive engagement and co-operation throughout our investigation. We’re now continuing our enforcement action against other care homes, and expect all homes to review their practices to make sure they aren’t breaking consumer law. We will act if we find evidence that they are.”
