Correspondence with Warwick Estates For Overpayment of service charge Refund

IBPurfleet

1. My initial request (16 July 2026)

I contacted Warwick Estates requesting a refund of the outstanding credit of £514.05, asking for it to be returned to the account from which my direct debit is collected.

2. Warwick’s first response (31 July 2026)

A representative from Warwick Estates informed me that, according to their interpretation of “clause K, point 7,” any credit must be carried forward to the next financial year. They stated they were unable to refund any credit on the account.

3. My reply (31 July 2026)

I expressed concern that withholding funds belonging to a consumer without clear justification may be considered an unfair trading practice under UK consumer‑protection principles. I explained that:

• Warwick Estates was holding money that belonged to me.
• They had refused to return it.

I stated that I would escalate the matter to the appropriate regulatory authorities and, if unresolved by 4 August 2026, I would consider raising awareness publicly.

4. Warwick’s revised position (4 August 2026)

Warwick Estates later confirmed that, upon further review, they were in fact able to refund the credit because the overpayment occurred before balancing adjustments were applied.

However, they stated that the credit was now £117.55, not £514.05, due to new service‑charge period demands.

They requested my bank details to process the refund.

5. My clarification (4 August 2026)

I reiterated that the refund amount should be £514.05, not £117.55, and provided the bank details for the refund. I also asked Warwick to confirm the annual service‑charge amount for the upcoming period.

6. Warwick’s further response (6 August 2026)

Warwick stated that the matter had been referred to a manager who was on annual leave. They added that refunding £514.05 would mean I would owe the full year’s service charge for July 2026–June 2027.

7. My final position (6 August 2026)

I confirmed that I was fully prepared to pay the service charge for the July 2026–June 2027 period once the refund was processed. I requested confirmation of:

• the refund of £514.05, and
• the annual service‑charge amount for 2026–27.

I also noted that reputable organisations typically resolve overpayment matters promptly.

8. Warwick’s acknowledgement (6 August 2026)

Warwick confirmed that my comments were noted and that they would respond once the manager returned.

1 week nearly past without hearing from Warwick Estate Management Ltd.

Just received an email from Warwick Estate Management saying the matter has been referred to their customer service complaint department and that it will take two weeks for me to receive response.

Why I’m sharing this

This situation has dragged on far longer than it would with any reputable organisation, would have. At every stage, I had to push for clarity, challenge incorrect interpretations, and insist on basic fairness.

A company holding onto a customer’s money and initially refusing to return it is not acceptable.

The fact that their position changed only after escalation raises concerns about how many other customers might simply accept the first refusal.

I’m sharing these so others who deal with Warwick Estates Management Ltd, are aware of how these situations may be handled, and so people know they can challenge decisions that don’t seem fair or reasonable.

eddddy

Out of interest, how did the overpayment / credit come about?

For example,

1. Did you overpay by mistake?
2. Did the management company send you and incorrect bill?
3. Did the management company provide an estimate at the start of the year, and at the end of the year the actual costs turned out to be lower than the original estimate?

Or something else.

If it's option 3, what the management company are doing seems normal. You pay the estimated amount, and if it turns out there is a surplus, the surplus gets carried over to the next year.

Also, I don't really understand your logic - why not just deduct the overpayment from this year's service charge, as they suggest?

(It sounds like you're saying the equivalent of "I'm not going to pay you £90. You have to refund me £10 first, then I'll pay you £100". What benefit does that achieve for you?)

It also sounds like you're refusing to pay this year's service charge as a protest. That's usually a very bad idea. If you don't pay, the law usually allows Management Companies to add their legal costs to your bill.

So if the Management Company instructs solicitors to take legal action against you for non-payment, that could add thousands to your bill.

IBPurfleet

Thank you for your response.

Edddy, thank you for your contribution.

I did not over pay mistakenly. I have always had a standing order over the past 10 years. Secondly, I have not received any bill for the coming year, other than a bill to pay extran £85 which prompted me to raise questions.

The management company eventually wrote to clarify their stand (Response from Warwick Estate Management: Good Afternoon, Thank you for your email and I apologise for the delay. The attached communication is in relation to the year end service charge accounts for years 2022, 2023, 2024 and 2025, as per the letter included. There was a balancing charge for years 2023, 2024 & 2025 and a balancing credit for 2022, however due to ongoing payments you have been making, your account is in credit. Therefore, you have nothing to pay and I believe you have been issued with a statement of your account showing this. I hope this clarifies, however if you have any further queries please do not hesitate to contact us.)

I have not received any estimated bill for July 2026 - June 2027 for the Warwick Estate Management Ltd to state a balance of £117.55 due to new service charge period demand.

If such is the practice of any management company, I reiterate it is wrong and no one should accept such practices. I have escalated the matter to the necessary authorities.

eddddy

I'm not sure whether we are talking about the same thing or not.

Service Charges generally work like this:

• At the start of each year, the management company estimate what your Service Charge will be for the coming year - and that's what you pay. (It sounds like your management company allow you to pay in monthly instalments.)

• At the end of each year, the management company do their accounts and work out what your actual service charge was. (The management company might take 3 months or 6 months or more after the year has ended to do the accounts.)

• The original estimate might have been too low, or it might have been too high.

• If the original estimate was too high, you will have credit on your account - which will be used against your future Service Charge bills

Is this what has happened to you? Or something else?

Just to re-emphasise the risks, if you are thinking about not paying your Service Charge as a protest…

• It sounds like you pay your annual Service Charge in monthly instalments. Payment by monthly instalments is often a discretionary benefit. If you miss monthly payments, you might be required to immediately pay the full year's Service Charge in one go.

• Also, failing to pay your Service Charge is a breach of your lease. The Managing Agent might take legal action against you for breach of lease, and you would probably be liable for their legal costs. (Which could be thousands of pounds)