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Brethertons charging £180 per letter!


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I usually give advice on this site but now need some myself :oops:

 

The company that owns the Freehold of an old property of mine sent a bill for ground rent to that property which was not passed on by the tenant.

 

They have since instructed a Law Firm as Debt Collectors who has charged me 2 lots of £180 for a letters sent to the rental property and then later to my registered office.

 

I paid the initial sums owed as soon as I got the 2nd letter to my registered office but not the Debt Collectors £360 fees.

 

My question is where do I stand on the amount of the fees charged? £180 per letter seems ridiculous. I've offered £90 to cover any expenses incurred which has been refused.

 

Any help would be greatly appreciated.

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Well of course £180 per letter is absurd. It could probably be treated as an unenforceable penalty in which case the entire penalty is vitiated and you are certainly relieved from paying even their reasonable administrative losses. I think that your offer of £90 was excessive. However, presumably you made this offer by letter or else you made it on the telephone and you recording the call – yes‽‽‽‽

 

There really isn't much you can do until they decide to begin some kind of legal action against you – or else they take some other measure against you which could be considered to be a breach of contract.

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Wow, thanks for the very prompt response Bankfodder. For info, the offer was made in an email chain conversation so I have a record of it and can produce it in any court proceedings if required. Just to state the sums due were £240 so adding £360 for two letters is also hugely disproportionate too.

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:thumb: Thread moved to Residential and Commercial lettings/Freehold issues Forum.

We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHER

 

Have we helped you ...?         Please Donate button to the Consumer Action Group - The National Consumer Service

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So..extra admin charges for late payment are payable if...

 

1. Youve been sent a valid S166 ground rent demand..(there maybe an issue here of to whom/where they sent it)

2. You didnt pay it and the lease allows extra admin/legal costs..some do, some dont..have a good read.

3. The admin charge was demanded with correct summary of rights > https://www.lease-advice.org/advice-guide/summaries-rights-obligations-administration-charges-england/

4. You can ask a FTT (previously LVT) if the amounts are reasonable..I think we'd all agree they are not.

 

Your offer of £90 seems reasonable..theyd have a hard time persuading a court/FTT if they still perused legal action that the actual legitimate costs were more.

 

*Id actually argue that employing a debt collector was not reasonable..after all they have no more powers than you or I..therefore it cant be a reasonable costs as it achieves nothing.

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