do i have to pay the legal fees?

pebblespop

i have recieved a solicitors letter today for an outstanding debt and it has £95 added on for the solicitors fee.

do i need to pay it? what will happen if i just send a cheque for the original debt amount?

DarkConvict

You haven't really provided any information on this for us to give you an answer. Solicitors fees can be added to some debts when they go into legal battles, i.e. a battle over costs due to work on say housing extensions.

Although for the most part, CCJs you just pay a court fee, and as to Debt collectors (which some go under the name of Solicitor xyz) they can only charge what is in the agreed terms and conditions on the original agreement. Admin fees and the like are not something you agree to so not something you have to pay. The odds are if this is say a credit card debt that's gone for collection due to failure to pay, then fee would not be allowed.

The OFT confirms it with the following.

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

2.10 Examples of unfair practices are as follows:
a. claiming collection costs from a debtor in the absence of express
contractual or other legal provision

pebblespop

sorry for not providing enough info!

i owe money for service charge at my house - didn't pay up when i should have done and now they have got a solicitor to send me a letter asking for the debt plus £95 for solicitors fees.

can i just pay the original company the amount owing without the solicitors fee. what would happen?

DarkConvict

For a service charge on a house its more of a grey area, consumer credit debt is much more clear cut.

I would advise you ring national debtline and see where you stand. http://www.nationaldebtline.co.uk/ , and also give CCCS or CAB a call too, to confirm the information.

Taking a stab at it, I would say no you do not have to pay the costs, as they choose to get a solicitor involved. You generally have to absorb your own costs, it was their decision to move to a solicitor.
When i had issues with vodafone I was offered a letter that would cost me ~£80 , but was told it may not help me in getting my problem sorted and i would be at least £80 out of pocket as i can't claim it back.
So you should not be responsible for the other sides legal costs.

If you pay directly, or at least make the written offer and they refuse. I think they would struggle to get you to pay their fees.

Obviously, there is an exception if in the paperwork for your house they are allowed to charge the fees for late payment of the service charges. But i would go with the approach of paying the original debt or at least making the offer to do so, and it in writing if your just making the offer.

pebblespop

thanks for that. will send a cheque to the original company for the amount i actually owe and see what happens.

DarkConvict

Its best to state in the letter you send to them that this is for payment of the service charge only.

They may try and be a sod and take part of the payment to cover the solicitor costs without asking.