Solicitor Demanding Money - Help!!

PUREHOMES

I recently purchased a house. Two weeks after completion, my solicitor contacted me to tell me that they had made a mistake with their calculations and I owe them £3500. I told them that I didn't have that sort of money immediately and would pay them in a few months time. However, I have now received a letter telling me, that they are taking legal action against me to recover the outstanding balance on my account, which may include bankruptcy proceedings. This is obviously a mistake by them as all costs should be settled before completion. I even queried the amount before completion but was told it was right. My query is what is my best course of action? As they are at fault, however I feel like the victim and am becoming stressed with their intimidation tactics regarding legal proceedings.

Tiger_greeneyes

I'm not that well up on legal issues (I'm sure someone else will be able to help you further on that score) but can you take all the paperwork they've sent you to another solicitor? It sounds like an awful situation to be in and I hope it irons itself out soon.

benood

£3500 sounds like they messed up on more than just their billing - did they miscalculate stamp duty? You say you queried the amount prior to completion - do you have the numbers in writing from them ie a completion statement? I would have thought that this is a good starting point if available. You really need to understand what it is they are saying you have underpaid - I would be tempted to call the law society and ask their advice - I'd hope they wouldn't just close ranks to protect their own.

When you know more post again I'm sure someone will have good advice.

Wings

I would suggest that if you are in agreement with their revised calculation, and that you therefore owe the monies to the solicitors, that you write back to them explaining that they have made the initial mistake, and that their revised calculation has been received by you when you are in a poor financial situation, and that you offer to pay the outstanding arrears by monthly installments/payments of £XXX (what you can afford).

Tiger_greeneyes

Thinking about it, did the solicitors send you a quote on their fees and the costs involved prior to you instructing them? It's usual practice for them to do so. You would have been able to budget for their fees.

If so, can you compare it against the completion statement?

The more I think about it, the more I think it's a huge sum of money for them to miscalculate - unless they were handling a sale as well as a purchase and simply forgot to charge you.

PUREHOMES

I have emailed the relevant regulatory bodies and will call tomorrow.

Basically, there was an additional charge on my previous house £3500. However, when the solicitors put it through, they calculated it at £35! Therefore they paid the £3500 debt off but only charged me £35! I have all the paperwork to prove it. They were handling my sale and purchase, but I, as well as them, both know where the miscalculation took place.

Techno

In fairness it doesn't sound like you are saying you won't pay - just you can't at the moment. I suppose it depends on the size of the solicitors whether the £3500 is a lot of money or a drop in the ocean. As it was their mistake I would hope they will be flexible although it doesn't sound like it. They are probably worried that you won't pay at all!!!! I agree with Wings - if you are liable then offer to pay monthly at a rate you can afford.

mystic_trev

The additional charge was on your house and therefore your responsibility.Just because your Solicitor made a miscalculation dosen't mean you don't have to pay up.One could say you should have noticed the mistake when you checked the statement.I can't see how you can thiink you're the "victim" as you must have known what your financial position was when you decided to move?

---lee---

mystic_trev wrote: »

The additional charge was on your house and therefore your responsibility.Just because your Solicitor made a miscalculation dosen't mean you don't have to pay up.One could say you should have noticed the mistake when you checked the statement.I can't see how you can thiink you're the "victim" as you must have known what your financial position was when you decided to move?

Where did OP say he/she would not pay? All of this should have been settled before the solicitor released any money. It's not reasonable to demand 3.5K immediately and make threats of legal action - who has that kind of money spare.

If I was OP, I would seek professional advice from another solicitor - hopefully one that knows what they are doing this time. I would hope that this sort of error would be covered by the solicitor’s indemnity insurance, but no doubt they will have a get out clause somewhere in the fine print.

dunstonh

The OP is liable to pay the money. There has been no financial loss due to their actions so there is nothing to claim against.

However, their attitude leaves little to be desired. The threat of court action normally only occurs if you dont respond to them. I'm not even sure they could bankrupt you on that amount as it would be handled through the small claims court and a judge would typically arrange a payment plan. (although the legal eagles here are much better placed to know what would happen as a worst case).

You must communicate with them and keep copies of your communications and their responses. If it does end up in court, the judge will want to see what efforts you have made to arrange payment and how flexible the solicitor has or hasnt been. Especially considering that it was a clerical error.

Bossyboots

benood wrote: »

I would be tempted to call the law society and ask their advice - I'd hope they wouldn't just close ranks to protect their own.

This would have been my advice too until the OP said what the error was.

There is now a separate regulatory body for investigating solicitors so the conflict of interest the Law Society had in investigating and also protecting its own no longer exists.