MP Andy Burnham has called for a probe into ground rent scams following a spate of complaints from worried home owners.
He is urging ministers to investigate the activities of companies collecting the rents from properties in the Leigh area.
Mr Burnham explained how companies have been buying the freeholds on local homes and are using a variety of techniques to increase the return from them.
These include:
the payment of extra funds to make up for alleged rent arrears
pressurising people to buy the freehold at inflated prices
requiring home owners to switch home insurance to that stipulated by the leaseholder
Mr Burnham has written to consumer affairs minister, Melanie Johnson, and housing minister, Lord Falconer, asking them to investigate and consider a crackdown.
He added: "Ground rents seem to be the latest way of making a quick buck. I have read some of the threatening letters people have received and am concerned about the distress they are causing.
"While some of these activities may technically be legal they are certainly not ethical. Elderly and vulnerable people in particular may find these letters very worrying and pay up without question.
"This cannot be right and must be stopped. I have alerted ministers to the problems in the Leigh area and urged them to consider taking action."
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