Query over money owed to Storage Company

[Herts47]

Hi

I'm hoping I'm in the right forum and wondered if someone could help me with a query I have on money owed to a Storage Company. In September 2017 I rented a storage container which I am still using. I signed a direct debit form and paid a deposit. I thought nothing more about it and as I was not going there on a regular basis and had another direct debit similar to this one, it didn't ocur to me that the money wasn't coming out. In January 2018 I realised this was the case and contacted the company via phone a few times and left voicemails, but had no response. I emailed a few times but they kept bouncing back. I then forgot about it again to be honest, until I was contacted by new management in around September this year.

The company have apologised that my past correspondence wasn't followed up. They were contacting me by letter to see if I still had the storage as their records had been lost. I responded immediately to the letter and said I had still got the storage and offered to come down and meet with them. They asked me to set up another direct debit which I've done. They are now asking for the arrears and how I'm going to pay these back. Today I have had a voicemail from them asking for this quite urgently before Christmas as they want to finalise their year end.

I haven't contacted them yet as I wanted to check on this site if I have any rights on this. Yes, I forgot about the direct debit not coming out as it was similar in value to another one. Yes, I followed up then forgot about it again as I don't go to the storage, and yes I do owe the arrears. However, I have tried to contact them on a number of occassions and got no response, and as soon as they sent me the letter, I responded and am now on a direct debit with them.

I don't have the means to pay off the arrears at the moment, and certainly won't be able to do anything before Christmas now. I feel their neglect on my previous correspendence should be taken into consideration and a reasonable adjustment of the arrears should be made. I don't want to go down the loan route as I'm trying to apply for a mortgage at the moment.

Any help or advice would be most appreciated.

[des8]

So have you already spent the money? and what do you want to do about the matter?

If you have spent the money (and it sounds as if you have!) bear in mind a legal principle called "estoppel" which briefly means that if you unwittingly spent the money thinking it was available as a result of THEIR mistake and you cannot recover that money (as it's been spent) then they cannot have it back.
That will take some research and a little work crafting a letter which sounds knowledgeable and convincing

If you don't want to go down that route because of possible hassle or because you think you ought to pay the fees, then why not suggest your own payment schedule of a reduced amount.
You mention the principle of estoppel, and explain that due to THEIR mistake you will be put into hardship.
Accordingly you propose a partial payment of £xx by xnumber of monthly payments

[Herts47]

Hi and thank you for replying and your great advice

i have received a further email from the company telling me What I owe in arrears. Apparently in May 2019 they put the price of the storage up but didn't tell me. They now want me to pay 2 years of arrears including the new price, but to contact them with a payment plan. I think May is when they changed management and it's strange that although they lost my records they have managed to contact me and work out how long I've had the storage for.

Can they demand these arrears in full - albeit with a payment plan and can they add the new price to the arrears despite never informing me of this?

as you have advised, I don't mind offering to pay some of the arrears- I was thinking of 50% but I'm a bit peeved they are expecting me to pay all of it back despite their neglect in taking the money.

Any further advice would be appreciated.

[des8]

As you were never advised of the increased rate they cannot now demand that, unless your contract allowed them to unilaterally change the charge without advising you, (and that could be construed as an unfair term within the contract)

They can demand repayment and they can even initiate court proceedings to do so.
However they would be foolish to go down that route viewing what has already been discussed.

Just remind them THEY FAILED to take their rent, and due to their failure the money is no longer available.(estoppel)
You cannot be held liable for an increase in rent of which you were not aware, again due to their inefficiency.

Your problem is in not following up in Jan 2018 when you noticed rent not being taken But there is no need to dwell on that!

All you can do is negotiate.
In some ways you are in a position of strength
1. you are an existing client who wishes to stay and presumably they don't want to find a new tenant for the container
2.You owe money and are prepared to pay some of it
3. Do they really want to risk going to court (always a risk and presumably less than £10000 so no chance of regaining solicitors costs)
4. and if they win you plead poverty and repay the deby at £5pm!!

If you are prepared to pay 50% over a year I would suggest an opening bid of 25% and go from there

​good luck