Estate Agent late payment fees £1000!

WSA

Hi, was hoping I could gain some insight here.

I have recently left my flat where I had an excellent relationship with the landlords, I know them personally now and they did not charge a penny for any damages off the deposit. Sad to be parting ways and I will always remember them fondly.

The estate agents have decided to charge me around £1000 for late payment fees over a total of 21 occasions. They give 5 days from the the due date, our standing order was set up for the 6th day. The payments should show consistency to that effect. I can only assume this was an admin error as to when the agreed payment date was set for, our contract being somewhat strange in that it was due on the 17th and usually wages come in later in the month.

The landlord is extremely unhappy with the estate agents for this charge, they have given us full backing and are happy to support our dispute. They have absolutely no problem with when the rent was being received and will put that in writing. We are in a situation where both parties are against the middle man (probably the biggest estate agents in London).

My question is how enforceable are these penalty charges, and can they take issue when the clients they represent do not see an issue?

Guest101

It's hard to say for sure.

If you only signed one contract, that is the one between you and the LL (the tenancy agreement), then the agent cannot charge this, as they are not a party to the contract, they only act on behalf of a party.

If you signed something seperate with the agents, then you need to tell us what it says.

pmlindyloo

Guest101 wrote: »

It's hard to say for sure.

If you only signed one contract, that is the one between you and the LL (the tenancy agreement), then the agent cannot charge this, as they are not a party to the contract, they only act on behalf of a party.

If you signed something seperate with the agents, then you need to tell us what it says.

Depending on what the contract says it may well be deemed an unfair clause.

See the OFT guidance (note is only guidance)

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/284440/oft356.pdf

page 80

WSA

Thank you for the responses! We only signed a tenancy agreement which is between the tenant and landlord. I think the penalty charges are based off the agents terms and conditions which I guess we entered into when signing up with them, along with a hefty admin fee!

In the contract it doesn't explicitly state exact fees for late rent but I have no doubt there will be something vague in there that can relate to it. They state it on emails/letters where they send a reminder for the rent:

"In accordance with our terms and conditions a charge of £40 + VAT will be made for this and any further correspondence we send you regarding late payment of rent."

My concern is we are dealing with a massive company here who most likely can make things difficult.

Guest101

WSA wrote: »

Thank you for the responses! We only signed a tenancy agreement which is between the tenant and landlord. I think the penalty charges are based off the agents terms and conditions which I guess we entered into when signing up with them, along with a hefty admin fee!

In the contract it doesn't explicitly state exact fees for late rent but I have no doubt there will be something vague in there that can relate to it. They state it on emails/letters where they send a reminder for the rent:

"In accordance with our terms and conditions a charge of £40 + VAT will be made for this and any further correspondence we send you regarding late payment of rent."

My concern is we are dealing with a massive company here who most likely can make things difficult.

Not that it matters if yes, but did they actually send the letters?

Either way you amended the contract with your landlord to pay on day 6. It was therefore not late.

G_M

I should ignore this. I seriously doubt they would go to court.

If they did, and given you can bring the LL as a witness or get a witness statement from him, I seriously doubt the agents woul win.

I hope the LL is sacking the agnts.....

pmlindyloo

This link might be useful for you

http://england.shelter.org.uk/get_advice/private_renting/problems_with_renting/letting_agent_redress_schemes

agrinnall

I don't understand why the charge is for 21 occasions. Either they sent you a letter after the first and subsequent late payments that you ignored, in which case it's probably fair that you should pay the charge, or they never sent you any letters and therefore I'm sure their claim would be thrown out.

Guest101

Just FYI all fees should be advertised inclusive of VAT.

wwl

pmlindyloo wrote: »

Depending on what the contract says it may well be deemed an unfair clause.

And/or an unlawful penalty. Unless they can show the amount represents an actual loss due to the late payment.