Service charge payments by cheque

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  • Macromia
    replied
    For it to be possible to charge leaseholders differently because of the method they use to pay their service charges, I would expect that the lease would have to allow individual costs to be apportioned differently.
    You are really talking about charging different amounts for 'management charges' based on how the payment is made.
    My lease, and I suspect many others, wouldn't allow this as all costs have to be split according to the proportions given in the leases.

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  • leaseholder64
    replied
    A discount isn't really a discount, it is a payment out from the service charge. I'd be very surprised to find any lease that allowed payments to be made to individual leaseholders from the service charge fund.

    If the lease requires electronic payment, you could probably make an administration charge for other methods, but don't forget the administration charge summary of rights.

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  • ram
    replied
    Your management costs will include for envelopes, and stamps for A.G.M minutes / meetings/ paper / printer ink etc, so you add 61p second class stamps to banks in your accounts with all the other stamps and envelops used. Simples.
    Are people wanting a report on every stamp you used, what for, and to whom ? -- I think not.

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  • gam
    replied
    Originally posted by ram View Post

    And why should she have to incur phone call costs to pay her service charges ?
    Are you going to pay someone's phone costs because you don't want cheques ?
    This is a fair point, but can also be taken further.... should I have to incur costs to post on her cheque to a bank, or incur costs of driving to a bank to enable this antiquated method of payment.

    If banks were not closing branches left right and centre then this wouldn't even be an issue, I was happy to pop into my local branch which was a 10 minute walk away from my home.

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  • andydd
    replied
    Originally posted by Flashback1966 View Post
    Tell her to pop into her bank and let them do the transfer.


    A FH cant dictate LHs to do this just to make his life easier

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  • gam
    replied
    Originally posted by sgclacy View Post
    You could increase your management charge and then offer a discount to bring it back to the old charge if paid by internet transfer
    Thanks - this seems to be the most straightforward and I will give it a try.

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  • gam
    replied
    Originally posted by jrsteeve View Post
    Do you have a post office near by? We use that method for most, they have paying in envelopes for most banks and you just include a paying in slip. Never had them go missing.
    This would have been perfect, but is not offered by HSBC for the type of account I have to hold the service charge sums in.

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  • jrsteeve
    replied
    Do you have a post office near by? We use that method for most, they have paying in envelopes for most banks and you just include a paying in slip. Never had them go missing.

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  • Flashback1966
    replied
    Tell her to pop into her bank and let them do the transfer.



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  • sgclacy
    replied
    You could increase your management charge and then offer a discount to bring it back to the old charge if paid by internet transfer

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  • ram
    replied
    My mother writes a cheque for her service charges. she can't use a computer any more, but even if she could, internet banking is beyond her.,
    And why should she have to incur phone call costs to pay her service charges ?
    Are you going to pay someone's phone costs because you don't want cheques ?

    She has paid by cheque for the last 20 years. It worked 20 years ago, and so should work now.

    Of course cheques are not legal tender, because they are NOT bank notes.
    Neither is a sandwich with the words, £ 10 pound note written on it.
    Cheques are an instruction to a bank, and not classed as money.

    Your yearly accounts will show bank charges, which all the leaseholders pay for, so no problem.





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  • andydd
    replied
    Originally posted by Lawcruncher View Post
    I do not think that the power to make regulations can extend to imposing conditions on how the rent or service charge is paid.
    I agree.....Im not sure there is much that can be done in this scenario....Im in the opposite scenario with my FH

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  • Lawcruncher
    replied
    I do not think that the power to make regulations can extend to imposing conditions on how the rent or service charge is paid.

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  • theartfullodger
    replied
    I've been paying in my cheques by post to First Direct for years now, never a problem. I scan cheque & paying in slip if I can be +rs+d.

    Some people, often older, only feel comfortable that way. How would you like a supplier to deal with an elderly relative? With compassion & tolerance perhaps?

    Can you offer a discount for electronic?

    Artful: 72.

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  • gam
    replied
    She says it is more convenient and that she does not like to use telephone or internet banking. I have been posting her cheques to my nearest branch, but the 1 January cheque was lost in the post and it took 4 weeks for her to write a replacement....!

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