Service Charge Dispute leading to Bad Credit

Service Charge Dispute leading to Bad Credit

20:55 PM, 23rd February 2015, About 9 years ago 3

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I’m a leaseholder in a block of flats managed by a Service Management Company to whom myself and other home owners in the block pay annual service charge. I have argued with them to no avail that the payment should be broken down into monthly or quarterly payments. Service Charge Dispute leading to Bad Credit

At the beginning of the financial year when they write letters demanding up front one off payments payment of about (£1,400.00) yearly service charge they use threatening words to enforce the collection of the fees and charges. Sometimes they even threaten to pass on details of late paying landlords to credit reference agencies.

I think its illegal for them to do this as they are not a financial institution. We all know how important one’s credit rating is and the implications when it gets tarnished.

What can a Leaseholder do to check that they are not taking the law into their own lands by sending a landlords name to credit reference agencies as a debtor?



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Mark Alexander - Founder of Property118

20:56 PM, 23rd February 2015, About 9 years ago

Hi Michael

I recommend you to discuss this matter with the Leasehold Advisory Service - see

Fed Up Landlord

22:43 PM, 24th February 2015, About 9 years ago

Briefly Michael you have a number of rights under leasehold law which are too expansive to go into in this forum Mark is right to suggest you contact the Leasehold Advisory Service. However, the demand for service charges must be in accordance with your lease. If it says one payment a year then that is how it must be demanded. It is unusual for that to occur. Normally it is twice a year. It must be demanded accompanied by a Summary of Rights and Obligations in a Prescribed Form of Words and in a font of at least 10 or more. If the demand is not in accordance with the lease, and is not accompanied by tbe Summary of Rights and Obligations then you can apply
to a First Tier Tribunal for a determination as to if you have to pay the service charge. In addition if 50% of the leaseholders in the Block wish to take over the management of the Block then you can apply for the Right To Manage. It is not for the faint hearted and you will need legal advice. But do not be bullied by greedy arrogant management companies. They can be brought
to heel and by banding together with other leaseholders you can get them to back off. The Lease website is the place to start.


22:05 PM, 2nd March 2015, About 9 years ago

Most leases require annual or bi-annual payment, you need to check yours. I have both in different properties.

I don't know anything about credit scores, I expect it is a bluff.

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