Late rent Fee

Alan1990_2

So I got a text message from the agency today (2 weeks after the due date) telling me that I had missed a payment on my rent and that I was now in arrears. I check my bank account and it turns out to be true and I was a little stumped as I have a standing order set up and I have a comfortable bank balance so no reason for it not to have paid out.

So I call the agency and they tell me that I am going to be charged £60 as well. Now the way I see it one of two things has happened, either the bank messed up big time or the document the agency gave me back in July ended a month earlier than it was supposed to. In both cases I find it very annoying and unreasonable for me to have to shoulder this charge. This should have been the last payment, there have been no other late payments and furthermore I am paid 3 months in advance.

My rent is just shy of £300 a month and so with this information is this charge fair and legal?

anselld

It seems high and could probably be disputed.
Try just paying off the arrears promptly and tell them you dispute the 60 fee.

DVardysShadow

You are right to question whether the standing order was correct. Also, was it a Standing Order or a Direct Debit? If it was a DD, then the Agency are probably at fault. Another question to resolve is whether your contract specifies a late fee.

£60 looks like a penalty rather than purely meeting the cots to the agent and landlord of being late. As such, you should dispute it.

*miaomiao*

Go to your bank and sit down to discuss this with a member of staff (not at the teller's desk). If an attempt to remove the money from your account was made, then it should show on their system (but not necessarily your copy of the records) whether or not it was successful. You can also confirm at this point what type of payment you have set up. From there write a letter (send with a free proof of posting from your post office) to your agency and dispute the late fee, but do agree to pay the rent. Send this with a cheque or a printed copy of a one-off payment direct to the agency. Photocopy the cheque on both sides if you are sending it and on the back of the cheque write exactly what it is for (ie. 'Rent on property xxx address of 300 GBP for April 2011'). Then you are no longer in arrears while you dispute the fee.

The amount of the late fee suggested is out of order, though. Smacks of the days when banks tried to charge such out of order fees and then the OFT (?) stepped in.

*miaomiao*

p.s. Tell your agency that you would prefer future communication by letter. Texts are not really suitable!