Service charges and interest

apophthegma

My block of flats has a biannual service charge. This January, the accountants hired by the building management company failed to issue invoices on time (and have been duly sacked as a result!). Due to the failure, the management company allowed an extension on the 21-day deadline for residents to pay their service charges. On 1 February, I still had not received my invoice for the service charge and emailed the management company to inform them. They sent a request to the accountants to issue the invoice. A week later I still had no reply, so I contacted the company again. Once again, they promised to issue the invoice. Two months later, I have still not received my invoice. I contacted the management company again, and they promised to send the invoice and waive the administration fee for late payment. They said they would have to collect interest on the charge, as I've 'had use of the money for all this time'. I told them that this was not acceptable, as I've done all I can to try to pay this charge, but the company has failed repeatedly in sending the invoice. They replied that they would halve the amount of interest payable, but could not get rid of it completely because 'it wouldn't be fair to the other lessees'.
I don't feel that they have any right to collect interest, as I contacted them before the payment was due and have attempted to make this payment. All the failings have been on their side. Do I have any grounds on which I can legally refuse to pay it?

Thanks for your help!

Mikeyorks

apophthegma wrote: »

Do I have any grounds on which I can legally refuse to pay it?

More to the point ..... 'do they have any grounds on which to legally levy it?' And the answer to that is 'no' ..... if they've established a practice whereby invoices are issued to solicit payment and you then have 'xx' days to pay following the invoice.

If, on the other hand, it's a sum previously known to you and with a specific payment date you were aware of ..... you're on more difficult ground.

apophthegma

Mikeyorks wrote: »

If, on the other hand, it's a sum previously known to you and with a specific payment date you were aware of ..... you're on more difficult ground.

Thanks for the advice.

The sum is never communicated in advance. My lease states that I have to pay a set percentage of the total service charge for the entire building, but that total service charge varies year on year. The lease also states that service charges are due on 1 January, but the management company has a deadline of 21 January. This year, due to the problems with the accountants, they extended the deadline to 14 February. I've been chasing them since 1 February and still haven't received an invoice.

Mikeyorks

apophthegma wrote: »

The sum is never communicated in advance.

In which case you're at liberty to decline to pay an interest charge. Where the system relies on an invoice to establish the start of the 21 days in which to make payment .... and they are aware they have failed to do that (repeatedly) ..... then they can't charge interest for late payment? As the payment date is set by the invoice.

Just make sure it isn't backdated ... and you pay it fairly promptly on eventual receipt!

apophthegma

Mikeyorks wrote: »

Just make sure it isn't backdated ... and you pay it fairly promptly on eventual receipt!

Great -- I definitely will!

Thanks again for all of your advice.