RMG Service charges excessive debt collection fees **RESOLVED FEES REMOVED**

[Stellaella007]

Hi, 

I'd like to seek some advice please. 

Today I received a debt collection letter in post from pdc, instructed by RMG property management. 

The service fees and reserve fund are to be paid in advance, fees were due for period 1st of July - 31st December 2022. 

I receive the invoices by email, unfortunately I completely missed them, having a new baby etc. has not helped. It's my fault i admit however the fees added seem very disproportionate. 

The payment due was £760, the management company added £34 late fee which is fine. On top of it, they added nearly £600+ of other fees (£160 client admin fees, £432 debt collection instructions fee, £24 additional costs).

It seems very unreasonable. 

To add some dates, they sent first invoice via email on 23/05/2022 and reminder email on 03/08/2022. The debt collection letter arrived today 27/08.
Interestingly, the called me on my phone about neighbour looking to contact me on 15/07 and failed to remind me of payments due. I would have paid it should I have known. I never missed a payment for 9 years. 

The agent i spoke to forwarded me the invoice reminder. I immediately paid the service fees plus late fee of £34. But worried what I should do about the remaining charges which seem very disproportionate. 

Is there anything you can advise please? 

Many thanks in advance  

[dx100uk]

depends on your type of deeds/contract/lease.

 

if you type in PDC or Property Debt Collection

in our enhanced google search box

 

you ll see there are numerous threads here on RMG

[Stellaella007]

Thanks. I did read quite a few posts but each case is a little bit different. 

 

I looked at the lease it says that payment paid in advance was due by 1st of July. 

 

It seems quite early in the process as well to issue a debt collection letter on 27.08 (less than 60days from payment due date) with only 1 email invoice and 1 email reminder sent as confirmed by RMG themselves. 

 

The lease states 5% interest per annum above the base rate of Barclays bank shall be added from due date to payment date in daily basis. It doesn't really mention other charges but says: 'And such interest shall be recovered as debt.' 

 

Also their reminder email issued in August mentions below:

 

Should your account still be overdue after 7 days from this letter and we have not heard from you to agree a payment arrangement, we will reluctantly refer your account to a debt collection representative to protect the interests of the development. You will then become responsible for additional charged which may be in excess of £240. This covers land registry, searches, admin charges and the fees of the debt collection representative who may pursue arrears via your mortgage lender where appropriate. Costs will continue to escalate should legal proceedings commence.

 

Nearly £650 fees added way exceed £240 quoted on the letter. 

 

I'm planning to drop them a complaint email asking for reduction in fees. So far they don't want to discuss the account with myself and refer me to the debt collection agency. Is that a good idea? 

 

Many thanks in advance 

 

[dx100uk]

A DCA is not a BAILIFF

And have

ZERO legal powers on ANY debt - no matter WHAT its type.

The dca themselves cant add anything to a debt.

 

However RMG might well have the right to add whatever fees they like, if so stated in your lease etc. 

 

Most of the threads are the eventual same. Things get added ..what is in what you have actually signed up too is the key document(s)

 

Dx

[dx100uk]

you need to search for posts by @andydd

not been around for a while 

but here is an example

 

 

[Stellaella007]

Thank you very much, I'm having a look. 

[Stellaella007]

It's not easy to interpret those things but your forum has tons of useful info. I really don't mind paying extra but £650 seems extortionate for couple of letters... I can't believe they have been getting away with it... 

[Stellaella007]

Hi, just wanted to post an update. Thank you so much for all your help 

On  different forum, I got an advice to set up an appointment with (removed - dx). After a conversation with their lawyer /advisor. They advised me of the costs of going to tribunal £100, plus £200 for hearing plus possibly legal advice fees and risk of losing and bearing all of the costs plus potentially management company costs; it all seemed quite risky and time consuming. You can save some costs by doing application yourself etc. But If I'm honest I would struggled and researching would take a lot of time....

 
The advice I was given is to start with writing a complaint letter to the management company and request for a cancellation of debt collection fees or considerable reduction. 

While I accepted it may not work and I may have to have an expensive lesson in paying the bills on time, to my big surprise I just received an email through that they had instructed DCA to close my case and cancel the debt collection fees. That's circa £650 that I don't have to pay. 

I'm incredibly grateful to you all  

Hope this helps someone in similar situation. 

Thank you All! It's so kind of you to give up your free time to help others. Your advice has been much appreciated! 
 

[dx100uk]

thats ok.

as you see some dcas fees are BOGUS.

 

never ever trust or believe anything a DCA says !!

 

as i said earlier...

they are NOT BAILIFFS

and have 

ZERO legal rights on ANY DEBT - no matter what it's type.

 

dx

 

well done!!

[Stellaella007]

Very true!!