Service Charge - Excessive Admin Fees

propertyrental

Edddy's advice is spot on - but OP should also be

a) asking Manco for breakdown of the charges and

b) approaching the Directors to see if  the 'Freeholders'  would/could either i) instruct the Manco they employ to act differently regarding minor arrrears and/or ii) sack/replace the Manco

hasani007

ThisIsWeird said:

Hasani reckon that this is the first communication from the management company regarding these arrears, or at least about these seemingly inflated admin charges?
If so, and based on Edddy's estimate of what a 'reasonable' sum should be for such an admin letter, would it make sense for Hasani to put the ManCo on the back foot by sending a payment for all the arrears plus £50?
After all, he's going to have to pay this in any case.
Covering letter; "Service charge arrears in full with apologies, plus £50 to cover admin for reminder", or similar?

I suspect the situation is more complex than this - Hasani tried to make contact, but these might not have followed the correct or required procedure, I don't know.

Hasani, are you in a financial position to pay off these arrears? If so, I'd suggest pay it, and asap. Then tackle the other matter.

Yes i am more than happy to pay the arrears. What frustrates me is i had zero communication from the ManCo at all regarding the charges. I only noticed when i emailed them about an older payment that had not appeared in my account and requested my full statement since moving in. The full statement highlighted those charges. 

eddddy

hasani007 said:

Yes i am more than happy to pay the arrears. What frustrates me is i had zero communication from the ManCo at all regarding the charges. I only noticed when i emailed them about an older payment that had not appeared in my account and requested my full statement since moving in. The full statement highlighted those charges. 

So you need to establish the facts - to decide if what they have done is reasonable, and whether the resulting charges are reasonable.

What steps have you taken so far, to establish what the managing agent says they have done, and why the managing agent says you owe them £600 in fees?

hasani007

eddddy said:

hasani007 said:

Yes i am more than happy to pay the arrears. What frustrates me is i had zero communication from the ManCo at all regarding the charges. I only noticed when i emailed them about an older payment that had not appeared in my account and requested my full statement since moving in. The full statement highlighted those charges. 

So you need to establish the facts - to decide if what they have done is reasonable, and whether the resulting charges are reasonable.

What steps have you taken so far, to establish what the managing agent says they have done, and why the managing agent says you owe them £600 in fees?

Paid off the arrears and will chase up the ManCo tomorrow for a resolution. As per their words "The admin charges are charged by our credit control department. These charges are late payment penalties". Which i replied i got no correspondence about these charges. No reply thus far. 

eddddy

hasani007 said:

Paid off the arrears and will chase up the ManCo tomorrow for a resolution. As per their words "The admin charges are charged by our credit control department. These charges are late payment penalties". Which i replied i got no correspondence about these charges. No reply thus far. 

They've seriously shot themselves in the foot, if they've called them "penalties". Did they say that in writing?

In the UK, companies aren't allowed to issue "penalties" or "fines" - only official bodies can do that.


However, the Commonhold and Leasehold Reform Act 2002 allows freeholders (and their managing agents) to charge you "Administration Charges" if you fail to make a payment by a due date.

As I've said, that "Administration Charge" is payment for the extra work they've had to do (and extra expenses they've incurred) as a result of you failing to make the payment. And they shouldn't be making any profit out of it.


That's why you should write to them to ask for a written breakdown of the "Administration Charges" they are asking for - so you can see if they are reasonable.


But you say that you haven't paid the "Administration Charges" they've asked for. As I explained., that can be very risky. 

If you don't pay the "administration Charges" they have asked for, they are likely to add even more charges.