Property Debt Collection Ltd. for HML Service Charges

[SparkleStorm]

We have been in dispute with our management agent HML Group over their service charges and have failed to respond to any queries we have raised. We have now received a demand letter from PDC adding on additional costs of collecting monies owed from £686 to £1471.99. Has anyone settled the original service charge directly with the management company and ignored PDC’s demand. Legally I don’t know if they can take this action further and what rights we have. We have a freehold property on a new build development. I’ve looked them up and they appear to operate very unprofessional tactics but by law I’m not sure what action to take, any advice would be greatly appreciated.

[Sam101]

If you own a freehold property on a new development, the solicitor you dealt with when buying the property would have seen the agreement and given you details. Have you asked them about this?

If you have written to the service agents, hopefully by recorded delivery as proof, and had no reply,they cannot just add costs to your account without proving a claim and showing how the costs have been incurred.

It may be that you have not given enough information in your question. Have you paid the normal charges to date or what is the position and how long have you owned the property?

[SparkleStorm]

We bought the property in 2017, paid the management service charge invoice for 2017 and 2018. The builder Redrow served the previous management company notice and brought in HML group in 2019. Since then they have sent us invoices (2 per year) which were differing in balances. We have queried charges added to our account and all communication has been ignored. It’s not that we didn’t want to pay the invoices more that what are we actually paying for and how can they change the figures on our account without a reason why. We have now received a demand letter from PDC but again the account statement doesn’t tally with the last account statement we received direct from HML. So what do we do, settle the PDC demand letter which has added nearly £800 of additional charges since December 2021 or pay HML their December 2021 account statement balance (although we’re still not satisfied that this is correct) how much legal standing does PDC have?

[Sam101]

1. Importantly, were your letters recorded delivery and do you have copies.

2. Write a letter headed FINAL NOTICE stating that you have sought advice and are advised to say that you are only delaying payment because the account is not correct and asking why your earlier letters have been ignored. Again asking for them to clarify the discrepancies in their account. Make sure that you send this letter by recorded delivery and obtain a receipt, proof of delivery.

3. Make it clear to them that without detailed explanation the payment cannot be made and you do not accept any additional charges they are trying to make.

4. Also make it clear that without details requested, you will be prepared to defend the matter in Court where they can clearly see that you have tried to pay once you have received replies requested and the money is held prior to clarification. Do this all this coming week.

Let the Forum know what the results are so that additional help may be suggested