Credit search costs and then non allocation of tenancy

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Broady

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Can someone please help.
Myself and wife applied for the tenancy of a property.On the application form for the letting agent it asked if you have any bad credit,arrears,defaults,ccj's etc to which I acknowledged I did.
Had a call from letting agent who said we had been awarded the tenancy.We were told that we had to pay £200 for them to get the references,this was incorrect it transpired that the £200 was for them to carry out a credit check.I had already declared past credit problems as per their form,I also had a call from the letting agent and explained what this was.She said it would be ok if we could get a guarantor.This was done and all paperwork completed.Today I have had a call saying no you can not have the property,presumably due to my poor credit and the £200 is non refundable.
I have spoken to another agent who says that they do the credit check first and then ask for the payment if you are successful.Can anyone advise if this company is legally entitled to do this as it's a good money making scheme.I've checked their website and there is nothin on there detailing this as a process.
Thank you (Mr No house and £200 out of pocket)
 
I don't know that we have anyone on this board who is familiar with Landlord/tenant laws in the UK. I'm sorry if you don't get an answer.
 
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