Friday 14 August 2009

Glasgow factor writes off £10,000

Glasgow property factor Walker Sandford (WS) has written off £10,760 in charges consisting of monthly compound interest, weekly 'reminder' letters costing £15 plus VAT, and an assortment of legal fees, for a Glasgow client of Govan Law Centre (GLC).

The client's original bill had been £536 but it quickly mushroomed into a debt of several thousands of pound. WS commenced an action for payment of debt at Glasgow Sheriff Court however this was defended by GLC solicitor Lorraine Barrie. The action was dropped after WS agreed that £536 was the correct sum due.

However, after dismissal of the action, WS continued to add compound interest and charges to the earlier disputed bill. That bill saw interest charges in excess of £300 being added every month - for an original debt of £536!

GLC applied for civil legal aid to bring an action for declarator and interdict in the Court of Session, however before this could be completed WS wrote off the entire 'bill' of £10,760. The client now has a zero balance.

GLC believes Walker Sandford's aggressive practice of imposing compound interest and penalty charges might well be unlawful at Scots common law and in terms of the Unfair Terms in Consumer Contract Regulations 1999. However, only a court can determine this matter, and Walker Sandford continue to deny their practices are unlawful.

Until the matter is resolved conclusively by a senior court, customers and advisors can obtain further information from GLC's website on Property Management Problems.

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