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Kevin Hollinrake MP raised the issue in Parliament

Colliers said it was concerned about reports of a significant escalation in cases by cowboy rating reviewers targeting companies in trouble looking to cut their bills during the pandemic.

Colliers said a recent parliamentary debate called for industry regulation to protect vulnerable companies suffering from financial hardship from falling victim to such rogue reviewers.

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The Colliers rating team has asked the RICS (Royal Institute of Chartered Surveyors) to enter and regulate the ratings industry.

In a statement, Colliers said: “An increasing number of companies, including Colliers customers, are being contacted by rogue rating experts who promise to achieve significant reductions in their business rate bills.

“Some companies, unaware that they are eligible for relief, are targeted by the rogue agents to obtain small business or ‘Covid’ relief even though the companies are in sectors that they would have received for free by just write to the local authorities.

“The small business concerned will then be charged an annual fee of up to 52% of the ‘savings’ for the term of the contract. In some cases, companies have been tied for 10 or 12 years.”

Colliers added, “It’s not just the smaller businesses that have suffered from unscrupulous credit rating agencies. The number of such incidents rose, particularly during the lockdowns when many office-based businesses were not getting the vacation rates for business rates seen in other sectors to pay their interest bills and became more prone to such a cowboy element.

Colliers added, “A particular spike was seen earlier in the year when businesses were led to believe the Government’s Assessment Bureau (VOA) was looking to cut or substantially change business rates for those setting up a customer center 25% had agreed, Maternity, Appeal and Rogue Surveyors have promised they could help get that relief. There is no such relief. “

John Webber, Head of Business Rates at Colliers, said, “Businesses are getting desperate. Some who are eligible for relief were unaware of it and have been targeted by rogue reviewers. Others who don’t get help but with No government announcement that anything is about to happen, has clung to straws.

“Rogue agents can take advantage of this plight. We believe things won’t get worse until the end of June, when 100 percent vacation rates for retail, hospitality, leisure and government support businesses run out. Corporations need to beware of false promises . “

Mr Webber continued: “We have long been committed to proper regulation of the rating industry and we support MP Kevin Hollinrake who is raising this issue in Parliament. We believe that there should be a registry of appointment professionals that should be regulated by the RICS, just as the FCA regulates financial advisors. “

He added, “The absence of such a register gives a cowboy element an opportunity to gain credibility and convince vulnerable companies that it can save them serious money. In the current crisis, this situation is spiraling out of control. We urge the RICS to take decisive action to effectively show these cowboys what they are and take a leadership role in a longstanding problem. “

A RICS spokesman said, “The point is for people to take advantage of companies that may be in financial distress, as well as companies that may not be fully aware of the pros and cons of the complicated system of business rates.

“RICS is empathetic to the position many companies continue to hold in relation to the impact of COVID-19, and recognizes the need for greater support for companies in our response to the Treasury Department’s Fundamental Review of Business Councils as well highlighted in our direct engagement with the government.

“While you don’t have to be a RICS professional to be a credit rating advisor, we recommend using RICS members and regulated companies that use Business Rate Services before arranging work.”

“RICS Rating Reviewers are fully regulated against RICS standards, including the Rating Consultancy Code of Practice and our Code of Ethics. This ensures that work is of a high standard, and the Rating Consultancy Code includes requirements for contract terms to protect the Customers of these services and the public interest.

“If a customer has concerns about a RICS expert, they can follow the established regulatory process with RICS.”

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