Excessive Debt Collection charges after service charge arrears

  • Filter
  • Time
  • Show
Clear All
new posts

    Have a look at the RICS code of guidance which managing companies are supposed to follow. You may find it helpful in your arguments. https://www.rics.org/uk/upholding-pr...nagement-code/


      Originally posted by ellenchen95 View Post

      So in summary, you would suggest, pay all the £1000, do nothing. Let it go?

      I thought I do have some a bit right to argue a bit?
      No I didn't say that. I said pay it in full (under protest) then bring an FTT case.

      - you might well lose
      - If you have paid it you are unlikely to end up having to pay extra costs
      - The FTT in some parts of the country has pretty much ceased to exist even for urgent health and safety matters. People are suffering huge detriment as a result and it has provided free scope for fraudsters, prevented dealing with unsafe buildings, and I'd imagine a few people have died as a result. They don't even answer extremely urgent H&S correspondence marked as urgent in the way they suggest it is marked.

      And make sure you never do it again. Owning a leasehold property is like riding a shark - you don't treat it as a casual joke


        Right, what I have done so far. I paid the £1000 today.
        And I have also got the 1st letter from the Debt collection company, which I didn't receive. Within the letter, they simply specific the amount I should pay, with no breakdown, no summary of rights.

        As this is an electronic letter, so no proof of when they have send out.

        Do I have any ground for a fee dispute for their later action charge- ie those they add-on charge, including contact my mortgage bank.


          They do appear disproportionate until you start thinking about the effects leaseholders not paying the service charge has on the building generally, on other leaseholders, and on the leaseholder its self who may eventually be subject to forfeiture. So it's pretty serious to 'forget'.

          You could have a look at the debt collection guidelines/code of conduct. Make a complaint to the managing agent, and after the end of their process to the appropriate ombudsman or ADR to which they have to be signed up.

          I think for what it's worth you should make a complaint because its disproportionate. Not least because they failed to include the statutory information.

          A similar thing happened to me when they were sending letters to the wrong address, but luckily they had the sense to ring me after 3 months and we worked it out.

          Now I make calender notes of when charges are due.


            Originally posted by ellenchen95 View Post

            So in summary, you would suggest, pay all the £1000, do nothing. Let it go?

            I thought I do have some a bit right to argue a bit?
            Realistically that's best advice, personally I would just pay the bill and ignore the late payment charges and wait for them to take you to FTT. Trouble is they will bombard you with ever more threatening letters and further charges and next year they will knock any payment off earlier "debt" first so you need stomach for a long fight
            And if you ever need to sell it will cause you problems.
            Unfair but that's the system sorry.


            Latest Activity


            • New freeholder requested backdated ground rent
              by Wrangler

              I have been living in a leasehold property for the last 8 year. I have always paid ground rent to the freeholder every year via bank transfer. Recently a new freeholder has taken over and is under the impression that I have not been paying and has sent a formal demand for backdated...
              18-01-2021, 20:01 PM
            • Reply to New freeholder requested backdated ground rent
              by eagle2
              I would definitely not pay by bank transfer, otherwise the freeholder is likely to apply the payment against the oldest ground rent which he is claiming. It doesn't matter if he bins the cheque (he won't) as long as you keep a copy and you hold proof of posting....
              20-01-2021, 06:21 AM
            • Reply to plethora of directors breaches in RMC
              by eagle2
              There is a huge amount of landlord and tenant legislation and Companies Act requirements to comply with and I am not aware of a single source of information. The RICS code of practice deals with many of the former and Companies House produces useful booklets.
              20-01-2021, 06:17 AM
            • plethora of directors breaches in RMC
              by JackBluebird
              Struggling with how to proceed,

              Company is building of 6 flats converted from a house about 25 years ago. Each leaseholder is a member, and currently each member is a director.

              The management of the building has been going downhill and we suspect that 4/6 directors have essentially...
              15-01-2021, 07:00 AM
            • Reply to £390 Overdue Charges on £50 Ground Rent Balance
              by eagle2
              If you just send a cheque for ground rent with no other comment, the probability is that the payment will be accepted and applied against other charges and additional charges will be added to your account. I respect Lawcruncher's advice but I think that it is important to state that the cheque may not...
              20-01-2021, 06:05 AM
            • £390 Overdue Charges on £50 Ground Rent Balance
              by J-T
              I've read around on here and read the FAQ, but I'm hoping for a little more direction on the following:

              I purchased a long (999yr from 1976) leasehold BTL in 2018. I have just refinanced the property and the mortgage company asked about the ground rent account, which spurred me into thinking...
              18-01-2021, 20:31 PM
            • Reply to £390 Overdue Charges on £50 Ground Rent Balance
              by Lawcruncher
              Send a letter to the agent/landlord enclosing a cheque for the rent. Say: "I enclose a cheque for the rent relating to [insert address of property]". Say absolutely nothing else.

              Have a look at the lease and let us know if if it has a clause dealing with the payment of the landlord's...
              19-01-2021, 17:00 PM
            • Reply to plethora of directors breaches in RMC
              by JackBluebird
              Thanks for the replies guys. Is there anywhere i can find some sort of draft or template letter for directors to inform them of their obligations and the surrounding legislation?...
              19-01-2021, 15:17 PM
            • Reply to New freeholder requested backdated ground rent
              by Section20z
              Tell them to do one , but I would pay this year's otherwise you might be in trouble. Try and get bank details (say you want to pay the lot??)so you can pay direct , otherwise they can bin cheque.
              19-01-2021, 13:25 PM
            • Communal garden only appears on 1 lease
              by Slj1108

              I am currently in the process of purchasing my first property, a ground floor flat in a converted house. The flat above is owned by another leaseholder & they rent their property out (currently up for sale).

              We are a couple weeks away from completing but my Solictor...
              14-01-2021, 22:28 PM