Consultation on draft consumer law advice for care homes on the charging of fees after death
19 January 2018: The CMA has opened a consultation on draft consumer law advice for UK care home providers for the elderly. This draft advice covers the charging of fees after a resident’s death and the treatment of their possessions.
30 November 2017: Following the launch of the investigation in June, in order to stop a number of care home providers using certain business practices and contract terms, the CMA has now written to these providers setting out its concerns. The CMA’s focus remains, currently, on the charging of upfront fees and requiring fees to be paid for an extended period following the resident’s death.
As announced in the care homes market study report the CMA will also be consulting on new guidance in early 2018, regarding fees charged after death.
On 13 June 2017, the CMA opened an investigation into a number of care home providers, due to concerns that some of the contract terms and/or practices they use may breach consumer law.
At the moment the focus of this case is on self-funding residents and the issues of large upfront fees and the fees charged after a resident’s death.
The CMA is also separately undertaking a market study which is considering whether the UK market for the provision of care home and nursing home services to the over 65s is working well for residents and for businesses competing fairly. The market study has identified a number of other consumer protection concerns and consideration is being given as to how these can best be addressed. Further details can be found in the market study update paper.