We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Debt collector adding 27% to debt as 'fees'

i wasn't really sure where to post this, so apologies if it's in the wrong place.

Our previous commercial landlord has decided after 12 months that we owe them for 'unpaid rent' which I am disputing. However, they have contacted us through a debt collection company who have then added their costs on top. The original balance they say we owe is £960, and the debt collection company is claiming the balance is £1180 which they have admitted includes their fees.

Now, I've worked out the interest at 8.5% and that would come to about £60. I've also looked up what the landlord is allowed to charge for 'debt collection' and that's £40 for debts up to £999.99 but are then allowed to charge additional 'Reasonable Costs', however they are adding 27% to the balance which I would not have thought would be 'reasonable'.

Is there any guidance as to what might be considered 'reasonable'?

Any help would be appreciated.

Comments

This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.2K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.3K Spending & Discounts
  • 247.2K Work, Benefits & Business
  • 603.8K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.