TOUGHER action needs to be taken against leasehold companies targeting Bolton residents, says Bolton North East’s Labour candidate.

Sir David Crausby says he has been contacted by a number of constituents complaining about the practices of Compton Group, a national company which owns a large number of leaseholds on properties in Bolton and across the North West.

Firms like the Compton Group have been insisting that those who live in a leasehold property must take out buildings insurance with their approved insurance provider — a practice Sir David helped outlaw through legislation in 2002.

He said: “At the time the legislation was a big step forward for the rights of individual homeowners but many years later these leasehold companies have found ways around the rules and are trying to make money, in my view disreputably.

“They are saying that residents are not following the letter of the legislation but nowhere in the legislation does it state that they have the right to force people to use their provider or to charge a ‘consent fee’.”

Residents say that the Compton Group has demanded payment of £60 to continue using a different insurance provider.

They have also reportedly demanded a written undertaking that residents will take out insurance with the preferred provider, Liverpool Victoria (LV), at the time of next renewal.

Sir David added: “Residents in Bolton are entitled to take out an insurance policy of their choice and get the best deal they can, as long as it is covers all interested parties.

“The Compton Group seem to think they can bully people into taking out overpriced insurance with them.

“I have written to The Compton Group to ask them desist from these threatening letters. I have also written to LV to make them aware of the practices of the company and ask them what they intend to do about it. I urge anyone who has been affected to seek advice or contact me.”

The Compton Group declined to comment.