RMG - PDC, Debt Collection Agency

darchas

Hi everyone

I used the forum a couple of years back for some guidance on a parking charge notice and got some fantastic suggestions for which I was very thankful, unfortunately I have a separate issue now and I’m hoping to take advantage of some of that generous advice again!

We live on an estate managed by RMG to which we pay a yearly ‘service charge’ - this is for maintaining parks, cutting grass etc. We usually do this through receiving an invoice around April time and pay by cheque or over the phone. This year we didn’t receive an invoice - it wasn’t something that was much on my mind, my mother passed away suddenly in March and the last few months have been spent dealing with all the work from that. There were also signs around the estate to say that due to the impact of COVID some services would be disrupted and delayed. So basically I barely noticed that we hadn’t received an invoice, and when it did pop in my mind I expected that the invoice would arrive eventually. We’ve always paid as soon as we receive it, and haven’t had a single problem with payment in the 6 years that we’ve lived here.

Then a few week’s back out of the blue we received a letter from PDC Ltd., a debt collection agency. On top of the service charge they’d also added £300 of their own fees! This was a shock as there’d been no communication at all from RMG, by post or by email, no original invoice, no reminders, nothing at all. I immediately emailed RMG to understand what had happened, expressing my disappointment in the seemingly immediate escalation to a debt collection agency, and offering to pay the original charge in whatever way was best for them. Their response was to wash their hands of the issue completely, saying that all correspondence would have to be through PDC. 

I then wrote to PDC explaining the situation, setting out my position quoting from my email to RMG, and included a cheque for the original service charge. They then wrote back to me, returning the cheque and saying they would only take the full amount. According to them my letter was not a valid dispute as it’s my responsibility to notify RMG if I haven’t received an invoice.

I feel like this is unfair. Given the situation it didn’t seem unreasonable that invoices might have been delayed in being sent out, I would’ve also expected follow up letters or emails before handing over the charge to a debt collection agency.

I’m unwilling to pay the charges but I’m not sure what legal recourse is available to PDC - I don’t want the charges to escalate further nor end up with a county court judgement or some other sanction. 

Is there any advice anyone might have in this situation? I have searched the forum and have found a couple of other similar cases (it seems as though RMG are somewhat renowned for this sort of behaviour), however I haven’t seen any updates on how the cases were eventually concluded.

What with everything else I currently have on this is a headache I can do without, but I do feel that we’ve been treated pretty unfairly and I’m unwilling to back down and pay the additional charges if I can help it.

Thanks for reading!

D

BrownTrout

Ignore any debt collection agency like this. They don't own the debt so can do nothing at all. Like any debt that has not been brought they can do absolutely nothing and are not a party to this debt.

bucksbloke

Unfortunately, you do not have the legal right to say you won't pay the charges. Your contract for sale and the covenants in your transfer require you to pay on demand. I know that RMG will say that there is a portal (www.rmgliving.co.uk) that all residents can sign up to and it will send them the invoices via email. 

RMG is part of the housing association Places for People. I would re-write the letter to the CEO (David Cowans) of the Places for People and send it to him at Places for People, 80 Cheapside, London, England, EC2V 6EE and see if it is willing to do anything. https://www.placesforpeople.co.uk/about-us/about-the-group/meet-the-board/

Comms69

Another reason to not buy new buolds...

lr1277

This is not helpful after the fact, but I would check the RMG online portal with your login details. I suspect the invoices maybe there. My parents also own an RMG managed property. They too didn't get an invoice this year. When we checked the online portal, I think because of excesses built up, no invoice was issued. IIRC so no guarantees.

darchas

BrownTrout said:

Ignore any debt collection agency like this. They don't own the debt so can do nothing at all. Like any debt that has not been brought they can do absolutely nothing and are not a party to this debt.

Thank you. I do want to pay the actual owed amount though and there doesn't seem to a way to do this as they return the cheque that I send. 

darchas

bucksbloke said:

Unfortunately, you do not have the legal right to say you won't pay the charges. Your contract for sale and the covenants in your transfer require you to pay on demand. I know that RMG will say that there is a portal (www.rmgliving.co.uk) that all residents can sign up to and it will send them the invoices via email. 

RMG is part of the housing association Places for People. I would re-write the letter to the CEO (David Cowans) of the Places for People and send it to him at Places for People, 80 Cheapside, London, England, EC2V 6EE and see if it is willing to do anything. https://www.placesforpeople.co.uk/about-us/about-the-group/meet-the-board/

Thank you. Does this mean that you think we will need to pay the additional £300 in penalties? I can write to the CEO and see if there is anything he can do, I'm not holding my breath though as I've since done some more research and it seems this escalation to PDC is a very common tactic of there's. In regards the portal this wasn't something we've ever been made aware of as far I know, we've always relied on the delivered invoice. I accept we could have been more proactive in chasing up the invoice but it just wasn't something on my mind and didn't seem overly odd given COVID that they might be running a bit behind getting it out. 

NameUnavailable

Debt collection has to follow a process. They haven't (from what you tell us) done that in this case. I would pay (to the management co, not the debt co) the original charge and dispute that any collection charges are due by you. Let them take you to court for those, from what you have said they won't stand a chance of winning.

princeofpounds

The service charge is not due until you receive a valid invoice - amongst other things that ahs to include the name and address of the freeholder and a summary of rights and obligations . So unless you have accepted invoicing in the T&Cs of an online portal or something like that then you probably have a valid defence for late payment.

Pay the service charge as normal (not through PDC).

Wenpat

Hi 
just wanted to add to this post. I’m in exactly the same situation with the poster. Can I ask how it was finalised.   I sent a cheque direct to RMG that has been cashed but still being chased by the debt company for £400 which I’m trying to dispute.   

Thankyou

[Deleted User]

The OP hasn't updated their thread in 2 years so unlikely they'll respond again now 😐