Can Landlord insist I pay service charges by cheque only?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Can Landlord insist I pay service charges by cheque only?

    I have a flat with a Landlord who accepts only cheques for payment of service charges. I have told him repeatedly that this method of payment is completely outdated and that I want to pay by bank transfer which is particularly useful when I am away from home. I have read my Lease which does not mention anything about restrictions on how I should pay. Has the Landlord the right to demand payment by cheque and can he withhold the account details from me to prevent me from paying electronically?

    #2
    Originally posted by bluesky View Post
    Has the Landlord the right to demand payment by cheque and can he withhold the account details from me to prevent me from paying electronically?
    Yes he can.

    Paying by cash or cheque is NOT outdated.

    Not everyone has a computer, and some people want and need to
    know that on the 1st of the month or whenever, they have the
    cheque for the service charges.
    Yes it's a bind to have to go to the bank and deposit all the cheques.

    Are you paying in advance with reconciliation at the end of the
    accounting period, if so, that's only 2 cheques a year !

    It is advisable to have the companies bank accout details, but don't
    think it's a legal requirement, so long as you pay Mr. x or
    x.y.z. company, cash or cheque.

    R.a.M.

    Comment


      #3
      I would ask him why he refuses to give out the bank details. he will likely say that he doesn't want to give out his bank details and which point the trap shuts.

      A landlord must hold all monies in an account separate from his funds for that block only on trust under section 42 of the landlord and tenant act 1987. If he is not doing that and cannot prove it then you refuse to pay.

      See my sticky http://www.landlordzone.co.uk/forums...de-of-Practice
      & http://www.legislation.gov.uk/uksi/2...type=em#page=6 part 4.
      Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

      Comment


        #4
        RAM - The Landlord maybe the Landlord but he's not the police, a court of law or the LVT. As the Lease mentions nothing about method of payment, under what law can the Landlord insist that I pay by cheque?

        Comment


          #5
          Originally posted by bluesky View Post
          RAM - The Landlord maybe the Landlord but he's not
          the police, a court of law or the LVT. As the Lease mentions nothing
          about method of payment, under what law can the Landlord insist that
          I pay by cheque?
          There can be no laws to state how 2 people pay / receive payment
          for goods.
          My mother knows many people who are over 85, in flats who do not
          have, need or want computers. Most would not know what to dowith
          a computer.
          If they have no computers, they have no online banking.

          If they are FORCED, by law, to pay by bank transfer, they thenhave to
          get on a bus, in foul weather, to go to the bank, fill in payment slips
          for a bank transfer, maybe pay to do so, and is not the way to do things.
          O.K. you may say "What about telephone banking".
          Have you tried to get through, and they have more checks, passwords,
          memorable information you need to remember, or can remember.
          My mom tried it once, and gave up.

          If you were one of above, you could come on here saying
          "My landlord is insisting I pay my service charges by bank
          transfer. I don't have a computer. Under what law can
          the Landlord insist that I pay by bank transfer?

          You can pay by mutual agreement between 2 people.

          If Landlord and tenant agrees,

          Payment can be made by :-

          a) 6 bushels of wheat, 6 pigs, 2 goats, 3 hens, one cow
          every quarter, and if you can't pay, you may have to send
          your daughter to the castle for a month.
          b) Coins of the realm.
          c) you can transfer your coins to the recipient in a form
          acceptable to the landlord. By cash or cheque.
          d) Standing order.
          e) Bank transfer.
          f) Gold bullion, as that IS what cash is, a substitute for gold, on paper .
          Look under the Bank of England words on a pound note.
          "I promise to pay the bearer, on demand, the sum of"
          Which to me says, I have this piece of coloured paper,
          now I want the £5 in gold. ( yes )

          I agree with you that bank transfer is easy for everyone,
          but you cannot force a supplier of good or services to
          be paid by bank transfer.

          Bank transfers are "offered" by the banks, not the Government.

          We have a gardener, we do not pay him by bank transfer
          every month, we pay him as option "C" ( cash ).
          We cannot force him to receive payment for his goods or
          services / invoice by bank transfer.
          If we did, he would say get lost,

          However, I must depart, need to go pay gardener.

          Have a good talk tolandlord ast o why he is unable to
          do transfers, if it's only one or two a year.

          Good luck.

          R.a.M.
          Last edited by ram; 03-08-2012, 08:37 AM. Reason: Gold bullion added

          Comment


            #6
            But RAM the landlord wants the person to do it the "old fashioned" route of a cheque....For those without computers there are other options, telephone banking or app phone banking.

            My earlier post is that sending by cheque means that the landlord might put your money into any account, when it should be in a particular form of account.
            Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

            Comment


              #7
              there are other options, telephone banking or app phone banking.

              See above post about telephone banking.

              APP ? phone banking, are you joking ? My mom cant use a mobile
              phone app, we had to get one with LARGE numbers on, not web phone
              and she can't even open text messages.

              might put money into any account,

              Correct, and that is for bluesky to investigate.
              Does hewrite cheque to Mr. joe blogs or xyz Company Ltd.

              R.a.M.
              Last edited by ram; 03-08-2012, 08:44 AM. Reason: just edited

              Comment


                #8
                Then perhaps a person less able has a helpful family member with time on their hands to help make certain payments or has a power of attorney.... "Sunday lunch visit and what bills do you need to pay Mum".

                Banks are used to dealing with seasoned citizens and those less able if they chose to skip the automated function/ security.
                Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                Comment


                  #9
                  RAM - I think you might have missed my point. I asked if a Landlord can insist on payment by cheque only. I'm not saying that a leaseholder doesn't have the option of paying by cheque which is particularly useful for the elderly and anyone who is not computer literate. I believe that the leaseholder has the right right to pay service charges by what ever means possible as long as the money arrives in the service charge account at the correct time in accordance with the lease. Perhaps I should phrase the question another way. Do you believe that the Landlord has the right to refuse payment by bank transfer?

                  Comment


                    #10
                    Originally posted by bluesky View Post
                    RAM - I think you might have missed my point.
                    Do you believe that the Landlord has the right to refuse payment by
                    bank transfer? AND Has the Landlord the right to demand payment by
                    cheque
                    first, I agree that you should be able to transfer funds electronicaly.

                    So,
                    It is the Landlord that is receiving the money, and in my ( humble )
                    opinion, ( and ignoring how account is set up at the bank)
                    my ( humble ) opinion that the landlord / shopkeeper /plumber
                    should receive payment that best suits their needs, accounting
                    preferences, locality of bank or ability to use and understand
                    computers.

                    The landlord, if he receives cheques, then he will receive money, as
                    both have to deposited into a bank.
                    He has given you 2 options to pay, and by inference.

                    1) Pay by cash
                    2) pay by cheque.

                    2 options are enough.

                    But you don't want to have 2 options, you want 3 options, maybe 4
                    Maybe transfer moneyfrom mobilephone to mobile phone and he
                    does not have a mobile phone, or like me, my cost per month on
                    a mobile phone is about £1, as it's just for emergencies, but on all
                    the time, but only makes + receives phone calls, no wap, no wi-fi,
                    no mmx etc etc. ( Cost £ 8.50 refurbished )
                    ( Stupid and dangerous way of transfering money anyway.)


                    To answer your latest question
                    "Does Landlord have the right to refuse payment by bank transfer" ?

                    Answer = Probably, yes.
                    It is to the disadvantage of the landlord to refuse to give you the
                    bank account details so that you can have the ease of a bank
                    transfer, but if landlord refuses, there is no problem at the moment,
                    as cheques are valid.

                    The time you have spent on this question, you could have pre written
                    12 cheques and envelopes, if that is the amount you have to write
                    per year, but you have not told us how many cheques you have to
                    write in any one year.

                    I would spend your time investigating the account details and where
                    the money goes, is it into a company account etc etc etc,
                    What name do you put on the cheque ?, as if is to Mr. Blogs, then
                    you have one reason why he will only accept cheques.

                    Eventualy, he may allow you to have the bank details,

                    Thanks.

                    Comment


                      #11
                      Originally posted by bluesky View Post
                      RAM - I think you might have missed my point. I asked if a Landlord can insist on payment by cheque only. Do you believe that the Landlord has the right to refuse payment by bank transfer?
                      I think RAM now understands your point, however you might too if you are hoping for a simple yes or no, and justification.

                      There is no simple answer; on first principles a Landlord is able to run their businesses and payments options as they please, however your rights under section 42 LTA 1987(earlier) mean that a landlord must prove that the funds are held in a particular account.

                      Not only does that open you to obtaining the sort code and account details, but where he is not in compliance, may convince him to open the correct account for the buildings funds only, thereby disposing of what is likely his main concern that his funds(as well as yours) might be " hackable" or open to others.

                      Moreover a direct payment of rent or service charge to a landlords account might lead to them having accepted a payment which is called a waiver of the right to forfeit a lease that is in breach, by doing something, accepting money, that would suggest that the landlord intends not to forfeit.

                      That is why this is often avoided by many landlords or agents who lack the sophistication or time to guard against that.
                      Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                      Comment


                        #12
                        It is interesting to find out that some Landlords might resist revealing the account details to avoid losing option of forfeiture. But surely the LL could just return the money immediately to the sender to avoid that outcome?

                        Comment


                          #13
                          Originally posted by bluesky View Post
                          It is interesting to find out that some Landlords might resist revealing the account details to avoid losing option of forfeiture. But surely the LL could just return the money immediately to the sender to avoid that outcome?
                          If you re-read my post, landlords might not immediately return it.
                          Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                          Comment


                            #14
                            Um, in short, and if your lease is silent, you can pay electronically. Simple.

                            Comment


                              #15
                              Originally posted by dant View Post
                              Um, in short, and if your lease is silent, you can pay electronically. Simple.
                              I am sorry but I don't see that any person is able to dictate the terms and method of payment and in the case of the landlord, they are free to choose and restrict those that are legal relevant and sensible.

                              The landlord is quite entitled to restrict them to the form mentioned and not give access to his bank account. That said as that account should be one holding monies on trust it should only have funds for that block and his own or other funds should not be at risk.

                              Pressing that issue might lead to the details being provided. A simple inspection under section 22 would likely reveal them anyway!

                              It is not uncommon for larger firms to maintain a single payee account which are reconciled to individual "client/trust" accounts on a daily basis to avoid any attempt to access the account leading to losses.

                              I don't see, Dant, how they would defend recovery action by, in their defence, saying "but I wanted to pay by transfer and they wouldn't let me (stamps foot)", getting very far.
                              Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                              Comment

                              Latest Activity

                              Collapse

                              Working...
                              X