Sheriff reduces property factors bill by 55%

In the case of Walker Sandford Property Management Ltd v. Mushtaq, Sheriff Ross ruled today that a property factor was not entitled to charge a Glasgow consumer monthly interest at 2.5% (equating to 30% APR) as the consumer had never agreed to the factor's contractual terms and conditions.  

Terms and conditions needed to be expressly or impliedly agreed at the outset of the arrangement or adopted by the parties' clear, specific, unequivocal actions. Simply adding the terms and conditions to an invoice was never a way of having conditions adopted. Accordingly, the factor was only entitled to payment in terms of the title deeds, and no interest was chargeable at all in terms of the title deeds.  Such charges therefore fell to be deleted.

Sheriff Ross also reduced the sum charged for second and subsequent monthly reminder/demand letters by one-third from £12 to £8.  Overall the sum sued of £2,678.55, was reduced to £1,213.13, resulting in a 55% reduction in the customer's bill. The action was dismissed with no expenses due to or by either party. The defender was represented by GLC's Iain Nisbet, solicitor and partner, and the pursuer's by Messrs Peacock Johnson Solicitors.

In cases highlighted by BBC Scotland last year, Sheriff Rae expressed concern at the amount of penalties levied by Walker Sandford Property Management Ltd, and in the end the company agreed to drop all penalty charges and interest.  In the past, Walker Sandford had previously issued remider/demand letters on a weekly basis, but now do so on a monthly basis for customers in arrears.

Sheriff reduces property factors bill by 55%

Update: Walker Sandford Public Meeting postponed

The proposed public meeting on property factor problems with Walker Sandford Property Management Ltd next Monday has had to be postponed due to technical event reasons. Our sincere apologies for any inconvenience. GLC hopes to announce the new date and venue for this event shortly. If you want to be automatically updated in that regard, you can subscribe to this blog - details of how to do so are to be found at the bottom of the left hand column of this page.

Update: Walker Sandford Public Meeting postponed

Morning Extra on BBC Radio Scotland

Listen to the programme again on the BBC iPlayer; Watch the BBC's video on this topic again.

Property factors and the practices of Glasgow-based Walker Sandford Property Management Ltd - which were exposed on tonight's BBC Reporting Scotland - will be the subject of discussion on BBC Radio Scotland's Morning Extra tomorrow morning, Friday 11 September 2009 from 9am. If you've had a bad experience with Walker Sandford Property Management Ltd or any other property factor you can call the show live tomorrow morning. Mike Dailly, GLC's Principal Solicitor, will be there to explain what homeowners can do to protect their legal position.

Morning Extra on BBC Radio Scotland

Public meeting concerning Walker Sandford Property Management Ltd

Govan Law Centre and Patricia Ferguson MSP, sponsor of the proposed Property Factors (Scotland) Bill, are hosting a major public meeting to address the concerns of customers of Walker Sandford Property Management Ltd.

We hope to have in attendance local MSPs and local elected members from all of the main political parties, representatives of relevant agencies and authorities, and representatives of other Glasgow law firms who have been involved in Walker Sandford litigation on behalf of consumers.

The public meeting will take place at 6.45pm on Monday 16 November 2009 in McLeod Hall, The Pearce Institute, 840-860 Govan Road, Glasgow, G51 3UU. McLeod Hall has capacity for 250 people, so please come along.

The aims of the meeting are:

1. To provide free consumer rights knowledge and a 'DIY-kit' on how to challenge the legality of default charges imposed as 'reminder letters' and compound monthly interest applied('charges on the charges'),empower customers to defend court actions where unfair charges have been applied, and seek repayment of unfair charges;
2. To identify cases for a test case strategy;
3. Provide a list of Glasgow law firms (including private legal firms)willing to defend cases raised by Walker Sandford, so the public has a pool of suitable solicitors where required and,
4. Ingather further evidence on the practices of Walker Sandford Property Management Ltd; and
5. Provide a campaign platform for a consensus for change.

Directions to the Public Meeting; Multimap of the Public Meeting location.

Public meeting concerning Walker Sandford Property Management Ltd

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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Glasgow factor writes off £10,000