Debt Collection Charges allocated to Service Charge account

  • Filter
  • Time
  • Show
Clear All
new posts

    If there is no debt, there is no need to appoint a DCA and a leaseholder would be able to recover any charges from the RMC. The contract with the DCA is probably in the name of the RMC, which may be entitled to recover monies from the MA or the directors. There is a danger of going round in circles because the MA is likely to say that it acted on behalf of the RMC and the directors will probably say that they followed advice from the MA. You probably need to change the MA and educate the directors.


      The RMC is the entity you would have to sue. I imagine the court would treat this as a reasonableness of service charges case and follow their standing rules which are to redirect to the FTT.

      The RMC could then sue the MA. Under exceptional circumstances, it could also sue its directors, but that would normally require first replacing the board, as well as that they had acted beyond the powers of the company.

      It is much more common for charges to be split into smaller instalments, than consolidated, but if consolidated!

      Although one talks about debt collection, this is really collection for failing to make contractual payments. Whilst those often are real debts, in the case of service charges, the service charge normally actually owes the leaseholder, even though there is no way of the leaseholder actually getting back that money, as such. Typical demands are pro-forma invoices, and typical payments are payments on account.

      The contract is broken when the amount becomes payable, and, if they consolidate two demands, one probably becomes payable in about 21 days and one six months after that.

      Incidentally, I find consolidation strange. The normal pressure is in the other direction.


        The RCA presumably charged the individual leaseholders administration charges and it is because those leaseholders refused to pay those charges that you are now being charged the total amount as service charges.

        It should be a simple matter to go to the FTT to disallow the amount as a service charge.

        I am not sure that the RMC can sue the MA or the directors, it would depend on the management agreement and service agreements and the Articles. It also depends on the circumstances, who made the decision and whether they were acting as agent or principal and according to advice or instructions received.


        Latest Activity


        • Communal Vs exclusive access
          I live on the ground floor of a 4 story owner-occupied block. 9 flats on the ground floor have a patio outside their property surrounded by communal landscaping. The lease shows the patio area as deck access and states it is for the exclusive access of that property and it is not 'to be used to store...
          01-10-2017, 13:40 PM
        • Reply to Communal Vs exclusive access
          "The exclusive right to use the terrace edged blue on the Plan 2 for the reasonable purpose intended"

          That reads a bit oddly. If that is all there is, it has mean you can use the terrace to do the sort of thing you expect pople to do on a terrace.

          "store any...
          20-05-2019, 18:28 PM
        • Covenants relating to landscaped area
          We live in a small development of 8 houses. When the building work was finished our local council place covenents on the site such as: no house to used for a business but more particularly that the landscaped area with trees and fencing had to be maintained in good order. The counci refused to adopt...
          20-05-2019, 11:48 AM
        • Reply to Covenants relating to landscaped area
          Generally you don't want a situation where part of an estate has reverted to the Crown, and you do want a situation where someone can be made to pay for maintaining the surrounding land.

          Also, if there were someone to enforce against, the council might well enforce using anti-social behaviour...
          20-05-2019, 13:23 PM
        • Reply to Communal Vs exclusive access
          The exclusive right to use the terrace edged blue on the Plan 2 for the reasonable purpose intended


          In using the terrace at the property not to:
          a) hang out any washing
          b) fix or install anything which is likely...
          20-05-2019, 13:13 PM
        • Reply to Communal Vs exclusive access
          What we need is the exact wording in the lease as to what rights you have over the patio.
          20-05-2019, 11:22 AM
          hello - its a little long, so sorry but please bare with !

          Hubby and I bought a ground floor maisonette in a block of 4 (there’s 3 blocks in total) the land - all 3 blocks is freehold as well as, a private shared driveway/road leading to the garages at the rear (owned by the 12 owners...
          19-05-2019, 06:21 AM
          This is all highly confusing.

          There is a lease -- why is it void???

          I cannot imagine that a lease (the contract) simply becomes void if the freeholder becomes bankrupt (or ceases to exist in some form) and if the thing they owned becomes owned by anyone or anything. If that...
          20-05-2019, 10:53 AM
        • Reply to Communal Vs exclusive access
          It is not entirely clear cut as the management company is still the responsible person for safety issues.
          20-05-2019, 09:03 AM
        • Reply to Communal Vs exclusive access
          Good morning, back again after a long absence. So to confirm how the patio can be used, I contacted the landlord directly a year ago and they confirmed they had no issue with me having plants or furniture on the patio, they confirmed to the managing agent also and that as far as they were concerned...
          20-05-2019, 08:37 AM