Debt Collection Fees of £250 for missed property service charge

ricster999

Hi, I had outstanding service charges on a flat - I usually paid by standing order a fixed amount but inadvertently went into arrears when charges for cladding were added (long story...) but essence was I owed around £1500 on top of usual service charge. 
The managing agent wrote to me saying "pay this or we'll pass it on to collection agency" but I genuinely missed/never received the letter so it was handed over to what seems a reputable debt collection agency.

When, out of the blue, I received their letter I immediately discussed with managing agent and they accepted it stemmed from a misunderstanding/mis-communication and I settled the debt within a day or two.

I then emailed the debt collection agency stating the above - its resolved, a misunderstanding - and I that I wasn't prepared to pay their excessive £250 fee but would pay £25 to cover reasonable admin charge of sending the letter (frankly I'll pay £25 to stop the nonsense). The £250 stems from a £240 'Instruction Fee' and £10 'Admin Fee' - sounds a bit made up, as if they've just added two numbers together to get £250.

Anyway my question(s) is - is the fee valid, can I ignore, what if I don't pay, can they (will they!?) issue a CCJ for this?

Thanks in advance

sourcrates

Debt collectors cannot charge a fee unless the original agreement the debt pertains too allows them to do so.

Most DCA "fee`s" won`t stand up in court, as they far exceed what would be deemed "reasonable".

They mostly get away with it as people think they have  to pay it, when in reality it should be treated as an invoice, so you can choose either to pay it, or not.

fatbelly

Stick to your guns - see if you can find it in writing that there is a charge of £250.

In that case I would suggest you quote UTCC regulations 1999.

Let us know how you get on

They don't 'issue a ccj'. They would have to start a court claim, you would defend it, and a judge would decide what you should pay by way of a 'judgement'. That would only get recorded against you if you did not pay it within a month

ricster999

Thank you both, I shall let it rest over Christmas and respond accordingly if they try it on again in the new year... 

diggingdude

Surely letting things rest has contributed to you getting to this stage. I would have been looking and responding today