The Competition and Markets Authority (CMA) has told Care UK that it must refund over 1,600 residents who were charged as much as £3,000 in upfront fees or face legal action.
Pressures on the social care system have been reflected in a high number of upheld complaints, according to Local Government and Social Care Ombudsman, Michael King.
Three leading care home providers are continuing to exceed a recommended limit on the charging of after-death fees.
The Competition and Markets Authority (CMA) has issued guidance for care home providers on their consumer law responsibilities.
An elderly couple living at a Warwickshire care home are facing the prospect of being separated after spending 70 years together.
Nottingham City Council has agreed to waive the care home fees of an elderly resident after he was put at risk of choking when given the wrong medication.