The CMA has this week launched court action against Care UK over compulsory upfront administration fees.
The High Court trial, which began on Tuesday (11 May) is due to complete on May 18. Legal proceedings, which had been scheduled for July 2020, were adjourned to this month following a request from Care UK.
Care UK agreed to refund more than £1m to NHS funded residents following action by the CMA in October 2020.
The CMA’s action over upfront fees has been fiercely contested by the care home provider.
A Care UK spokesperson said: “We strongly refute all the assertions made by the CMA and always acted in compliance with the CMA’s guidance and any other guidance available. The practice of charging an administration fee was widespread across the care home sector and there was no guidance in place regarding these fees at the time of the CMA market study up to 2018.
“Care UK has always led the way in providing a clear outline of fees on its website and throughout the admission process to potential residents and their families. As a result, the allegations made by the CMA are not a fair and true reflection of our approach to residents and their care.
“We remain fully compliant with the guidelines, are engaging fully with the court proceedings and look forward to concluding the legal action.”