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Service Charge passed on to a debt collection agency

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  • Service Charge passed on to a debt collection agency

    I've reviewed various posts here but couldn't find a similar situation, so I'm seeking advice.

    I own a leasehold flat managed by a management company. Due to being away for work for several months, I forgot to pay my service charge on time. Upon returning, I discovered several letters and found that the debt had been passed to a collection agency, inflating my service charge from about £1,400 to over £3,200 with additional fees of over £1,800.

    I have since paid the £1,400 directly to the management company (not the debt agency), but I've now received a letter from the county court initiated by the debt collection agency.

    I have sent a complaint letter to the management company addressing these points:
    1. Incorrect Service Charge Demand: The original service charge demand was incorrect as it did not comply with statutory requirements. It failed to include the landlord's name and address, listing only an agent's name and address.
    2. Lack of Summary of Rights and Obligations: The service charge demand letters did not include a summary of leaseholders' rights and obligations, nor did they inform leaseholders of their right to apply to a tribunal.
    3. Property Leasehold Terms: According to the property lease, the service charge payment deadline is the 30th of June each year. There is no provision stating that the payment is due at the beginning of the year.
    4. Unreasonable Use of Debt Collection Agency: It was unreasonable for the management company to instruct a debt collection agency, and there is no clause in the lease authorizing this action.

    I am deeply concerned and would appreciate advice on the next steps to resolve this situation.

    The management company has had the payment for over a week without any response. Should I appeal to the county court using the points above?

    https://imgur.com/a/I3RJkiZ

    https://imgur.com/a/dusfGyc
    Last edited by baksonlee; 2nd July 2024, 20:01:PM.
    Tags: None

  • #2
    Is this letter that you have received from the County Court by any chance a Claim Form?

    If so, the points you make would appear to be your Defence. That, and the fact that you have paid whatever you have paid.
    Lawyer (solicitor) - retired from practice, now supervising solicitor in a university law clinic. I do not advise by private message.

    Litigants in Person should download and read the Judiciary's handbook for litigants in person: https://www.judiciary.uk/wp-content/..._in_Person.pdf

    Comment


    • #3
      I believe it does inclide a claim form. I have just submitted the acknowledgement of service to extend the deadline to respond by an extra 14 days.

      Could you please confirm if the points, particularly those regarding the lease, are valid? I have attached an extract of the lease and a copy of the letter demanding the service charge. Legal language can be confusing for me.

      Comment

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