BW legal, letter of claim hold response

bellyflop101

I need some advice about my case. I parked in a car park and paid for an hour. My phone died during that time and I wasn't able to buy more parking time until I had managed to charge it, so there was a 40 minute window where the car was parked without being paid for. Before I left the car park I had purchased 4 hours of parking time and the car had only been in the car park for a total of 3 hrs and 20 minutes. I then received a charge based on "contravention of grace period" and appealed directly to the company. They lowered the charge to £20. I probably should have just paid it then but my sense of righteousness had already set in. I was offered to appeal again with popla but I had stupidly already stated that I was the one driving so gathred that I was unlikely to succeed so I just ignored the ensuing letters. I then started getting letters from Trace Debt Recovery which then became BW legal. I then Ignored all of those and recently recieved a letter of claim, wrote them the email to have it halted for a month etc.

I then recieved this response from them 

... "Debt rcovery costs are contractually agreed by the motorist when entering the carpark. 

They only apply when the opportunity to pay the parking charge has expiredand the parking company has been forced to commence debt recovery activities. Such contractual costs are rcognised by the courts as coverig debt rcovery activity between the expiry of the parking charge notice and the commencement of litigation, including pre-litigation correspondence. 

the fees we charge our clients for are subject to VAT. Howerer, these are seperate ad distinct from contractual debt recovery costs recoverable by our client from the motorist. 

our client has previously denied your appeal, as you were found to have remained parked in excess of the 10 minute grace period. " ... 

It then basically says 'we wait to hear when you're going to pay us'. I'm not sure how to respond to this letter. I've seen the whole response to the LoC and the defense for court bit but not sure about this bit inbetween. If I've missed something sorry but would be very grateful if someone could link me to the appropriate post(s) 

Gr1pr

File it away and wait for the inevitable court claim 

Coupon-mad

But report them to HMRC. Pleease! Now.

Look how DIFFERENTLY BW Legal described that fee just 2 months ago:

https://forums.moneysavingexpert.com/discussion/comment/80692733/#Comment_80692733

Then they called it "our costs" for debt recovery but now they are distancing themselves, saying the money goes to the client who then pays them (...IMHO that is the same thing, in essence, and definitely subject to VAT according to HMRC).  More importantly perhaps, YOU can't be charged the VAT element of debt recovery but it looks like this convoluted arrangement is doing that.

Insist HMRC investigate these concerns which are worth multi-millions in VAT if it's not been paid on the '£70 per PCN' that these greedy firms have rinsed from consumers over the years.

Coupon-mad

I suspect (hope) that something might be hitting home with HMRC.  I hope someone is being investigated properly re these VAT concerns.

It's been interesting to observe:

- BW Legal suddenly markedly changing (since their 'our costs' replies in Feb/March 2024) to now describing the nature/recipient of the £70 fee completely differently;

- @Whatever2023 was at pains this month to tell us exactly what BW Legal are now saying.

BW Legal appear shaken. Time will tell.