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Ground rent arrears / Debt collection

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straas
straas Posts: 88 Forumite
in House buying, renting & selling
Hi, hoping for a bit of help:

We purchased our home approx 4 years ago, and didn't receive a demand for ground rent until December 2017.

The letter demanded the ground rent arrears and an administration charge of £60.

I was in the process of querying the charge with the ground rent company and am currently awaiting a reply as I asked for a breakdown of the administration charge as I felt it was unduly high.

The total of the administration charge and the ground rent arrears was circa £76

Today I have received a letter from a debt collection agency demanding nearly £400.

Where do I stand on this?

Thanks
«13

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  • Comms69
    Comms69 Posts: 14,229 Forumite
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    straas wrote: »
    Hi, hoping for a bit of help:

    We purchased our home approx 4 years ago, and didn't receive a demand for ground rent until December 2017.

    The letter demanded the ground rent arrears and an administration charge of £60.

    I was in the process of querying the charge with the ground rent company and am currently awaiting a reply as I asked for a breakdown of the administration charge as I felt it was unduly high.

    The total of the administration charge and the ground rent arrears was circa £76

    Today I have received a letter from a debt collection agency demanding nearly £400.

    Where do I stand on this?

    Thanks



    No-one can tell you. You don't say WHY it's jumped an additional £324.
  • straas
    straas Posts: 88 Forumite
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    The letter doesn't state.

    The ground rent is £4 annually, the administration charge from the ground rent company was £60.

    The debt collection letter asks for £392 and states that £192 of this is their fee (inc. VAT)
  • Comms69
    Comms69 Posts: 14,229 Forumite
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    straas wrote: »
    The letter doesn't state.

    The ground rent is £4 annually, the administration charge from the ground rent company was £60.

    The debt collection letter asks for £392 and states that £192 of this is their fee (inc. VAT)



    Perhaps it's been to court?


    Debt collectors can only add limited charges. Bailiffs on the other hand have quite substantial charges to be added.


    It might be that you have a CCJ
  • straas
    straas Posts: 88 Forumite
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    Comms69 wrote: »
    Perhaps it's been to court?


    Debt collectors can only add limited charges. Bailiffs on the other hand have quite substantial charges to be added.


    It might be that you have a CCJ

    Would I not have had some correspondence stating this?
  • Comms69
    Comms69 Posts: 14,229 Forumite
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    straas wrote: »
    Would I not have had some correspondence stating this?
    Well in theory yes, but it wouldn't be the first time.


    Without seeing the letter its impossible to say. I'd phone the management company and ask them
  • G_M
    G_M Posts: 51,977 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
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    * so you owe 4 x £4 - £16 yes?
    * are you living at the property or is it perhaps rented out?
    * are you sure you never received a demand for payment before? Might it have gone elsewhere or been ignored or lost?
    * an admin charge of £60 is not unusual where chasing non-payment is involved - the question is whether this is the 1st demand for payment or not
    * what date in December was the letter sent? A reasonable gap would be required before passing it to debt collectors.
    * the debt collectors fee seems high, but why did you not take immediate acton when 1st letter received in December?
  • straas
    straas Posts: 88 Forumite
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    Comms69 wrote: »
    Well in theory yes, but it wouldn't be the first time.


    Without seeing the letter its impossible to say. I'd phone the management company and ask them

    They have no phone number, it's email only. They have asked for all correspondence to now be with the debt collection agency.
  • straas
    straas Posts: 88 Forumite
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    G_M wrote: »
    * so you owe 4 x £4 - £16 yes?
    * are you living at the property or is it perhaps rented out?
    * are you sure you never received a demand for payment before? Might it have gone elsewhere or been ignored or lost?
    * an admin chare of £60 is not unusual were chasing non-payment is involved - the question is whether this is the 1st demand for payment or not
    * what datee in December was the letter sent? A reasonable gap would be required before passing it to debt collectors.
    * the debt collectors fee seems high, but wh did you not take immediate acton when 1st leter received in December?

    The demand letter was received 5th December.

    I was in the process of querying the administration charge, they have been slow to reply which I put down to the christmas period.

    And yes I owe £16, so £392 is quite the jump!
  • Comms69
    Comms69 Posts: 14,229 Forumite
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    straas wrote: »
    They have no phone number, it's email only. They have asked for all correspondence to now be with the debt collection agency.
    That may well be unfortunate. You don't owe the debt collectors any money.


    *** assuming they are JUST debt collectors
  • straas
    straas Posts: 88 Forumite
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    This is the letter I received today. I was told the next step would be taken 7 days from the date on the letter (9th)

    https://ibb.co/kjuP7R
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