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  • FIRST POST
    • brucethefish
    • By brucethefish 15th Sep 17, 10:53 AM
    • 95Posts
    • 8Thanks
    brucethefish
    Compton Group - Insurance
    • #1
    • 15th Sep 17, 10:53 AM
    Compton Group - Insurance 15th Sep 17 at 10:53 AM
    Hi

    I forgot to send in my insurance documents to Compton Group back in May.

    I have since sent them after a reminder, but they are now asking for £60 as an admin fee - for an email and a letter(!)

    Is there any way out of this? I have offered £20 for them to go away basically
Page 1
    • Guest101
    • By Guest101 15th Sep 17, 10:56 AM
    • 15,118 Posts
    • 14,764 Thanks
    Guest101
    • #2
    • 15th Sep 17, 10:56 AM
    • #2
    • 15th Sep 17, 10:56 AM
    Hi

    I forgot to send in my insurance documents to Compton Group back in May.

    I have since sent them after a reminder, but they are now asking for £60 as an admin fee - for an email and a letter(!)

    Is there any way out of this? I have offered £20 for them to go away basically
    Originally posted by brucethefish
    How on earth do you expect people to read the terms and conditions from their locations?


    Perhaps you could quote what the clause is?


    I mean ultimately if you don't pay it, then they wont pay out on any claim and will cancel the policy. Which then means you have a cancelled insurance marker and you will not get insured again or at a much higher rate.
    • brucethefish
    • By brucethefish 15th Sep 17, 10:58 AM
    • 95 Posts
    • 8 Thanks
    brucethefish
    • #3
    • 15th Sep 17, 10:58 AM
    • #3
    • 15th Sep 17, 10:58 AM
    Sorry, this is Section 164 of the Commonhold and Leasehold Reform Act 2002 - they basically want me to go through their approved insurance company.

    That original post wasnt clear at all to be fair!
    • Guest101
    • By Guest101 15th Sep 17, 11:09 AM
    • 15,118 Posts
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    Guest101
    • #4
    • 15th Sep 17, 11:09 AM
    • #4
    • 15th Sep 17, 11:09 AM
    Sorry, this is Section 164 of the Commonhold and Leasehold Reform Act 2002 - they basically want me to go through their approved insurance company.

    That original post wasnt clear at all to be fair!
    Originally posted by brucethefish
    Again, it's not. That is the legislation, but they are charging you according to a clause in your contract.
    • brucethefish
    • By brucethefish 15th Sep 17, 11:11 AM
    • 95 Posts
    • 8 Thanks
    brucethefish
    • #5
    • 15th Sep 17, 11:11 AM
    • #5
    • 15th Sep 17, 11:11 AM
    They have already stated in an email that the contract does not include an amount payable for not insuring through them, but then went on to say £60 is non negotiable
    • Guest101
    • By Guest101 15th Sep 17, 11:15 AM
    • 15,118 Posts
    • 14,764 Thanks
    Guest101
    • #6
    • 15th Sep 17, 11:15 AM
    • #6
    • 15th Sep 17, 11:15 AM
    They have already stated in an email that the contract does not include an amount payable for not insuring through them, but then went on to say £60 is non negotiable
    Originally posted by brucethefish
    This is starting to be like pulling teeth.


    Does your lease say anything about admin fees for late documents / reminders?
    • x-caitlin-x
    • By x-caitlin-x 15th Sep 17, 12:47 PM
    • 237 Posts
    • 205 Thanks
    x-caitlin-x
    • #7
    • 15th Sep 17, 12:47 PM
    • #7
    • 15th Sep 17, 12:47 PM
    They have already stated in an email that the contract does not include an amount payable for not insuring through them, but then went on to say £60 is non negotiable
    Originally posted by brucethefish
    I just got my mortgage offer yesterday and spent a painful evening reading through all the paperwork. We have to pay a £10 fee if we choose to arrange insurance ourselves rather than through the building society's agency, but if we choose to do so then we're required to send evidence of our insurance through to the building society. There was a very clear admin charge applicable if we fail to send them the documents (can't remember exactly what now, but £60 sounds about right). I'd imagine that your T&Cs had something similar, so you've already agreed to it.
    • eddddy
    • By eddddy 15th Sep 17, 1:19 PM
    • 5,439 Posts
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    eddddy
    • #8
    • 15th Sep 17, 1:19 PM
    • #8
    • 15th Sep 17, 1:19 PM
    I'll have a go at guessing what you're asking...
    You're the leaseholder of a property and Compton Group is the freeholder.

    There is a covenant in your lease which requires you to insure your property. Compton Group asked you to provide evidence that you have insurance.

    You didn't provide the evidence, so your freeholder sent you a reminder letter and email - and they are charging you an admin fee of £60 for these reminders.

    (Section 164 of the Commonhold and Leasehold Reform Act 2002 makes it clear that you must provide insurance details to your freeholder.)

    Assuming the above is correct...
    The law says that admin charges made by freeholders must be 'reasonable' - i.e. They must reflect the amount of work the freeholder had to do.

    As an indicator, the Upper Tribunal Lands Chamber ruled in 2012 that £40 was a reasonable fee for a freeholder to charge for issuing a 'consent to let'.
    ( See: http://landschamber.decisions.tribunals.gov.uk//Aspx/view.aspx?id=823 and download the the document).

    I guess sending you a reminder letter and email is a similar amount of work to issuing a 'consent to let' letter. So maybe £40 is reasonable.

    If your freeholder doesn't accept your reduced offer, the standard advice is to pay the full amount - making it clear that it is under protest - then go to the tribunal to challenge it.
    It's up to you whether you think it's worth it for this kind of amount.
    • brucethefish
    • By brucethefish 15th Sep 17, 1:28 PM
    • 95 Posts
    • 8 Thanks
    brucethefish
    • #9
    • 15th Sep 17, 1:28 PM
    • #9
    • 15th Sep 17, 1:28 PM
    Hi

    That is indeed correct, many thanks for taking the time to decipher and rewrite!

    I will email them a link to that summary. Im more annoyed with myself to be honest, but at the same feel like they are making up the charges as they go long
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