Revealed: the great property factor scandal

[u/TimesandSundayTimes]

https://www.thetimes.com/uk/scotland/article/revealed-homeowners-face-big-bills-from-factors-they-cant-hold-to-account-cqj888hc5?utm_source=reddit&utm_campaign=scotland&utm_medium=story&utm_content=branded

One year after Kristian Stevenson bought his first flat, the 34-year-old received an unexpected demand for £4,000.

The property factor who looks after the roof, garden and maintenance of his tenement flat in Cessnock, Glasgow, claimed that he was liable for a debt owed by somebody else in the building.

The letter from 91BC, which manages almost 4,430 properties, said: “Our role as factor is to facilitate communal works and charges relating to your building. We have exhausted our debt collection process and as a last resort, we must reapportion this debt to you.”

The £16,000 bill for the building, which Stevenson said was run up before he purchased the two-bed property, had never been mentioned in conveyancing and he was liable to pay £4,200. Nothing existed in the title deeds to suggest he would be culpable for somebody else’s debt. The factor said the deeds were outdated and he must pay the bill according to their written statement of service, which he said he did not receive until two years after moving into the property he bought for £180,000.

The statement of service did state that homeowners were jointly liable for debt, even if they did not cause this themselves, as is the case for most property factor contracts.

Stevenson, a freelance TV and film production co-ordinator, pays about £130 a month to 91BC and said the “absurdly high bill” included £6,000 in late payment fees and legal fees the property factor paid when chasing the other owner’s debt.

“If I was to pay this off it would wipe out any savings I’ve rebuilt,” he said. “A substantial bill without notice, consultation or even a real explanation is both unethical and a poor business strategy.

“Dealing with a massive sum of money like that puts significantly a lot of pressure on me.”

There are hundreds of thousands of property owners like Stevenson across Scotland collectively paying tens of millions of pounds each year to factors who are almost impossible to hold to account.

A long multi-step complaints process, which requires homeowners to compile evidence and documents and often take legal advice, has been blamed for poor regulation and accountability of property factors.

[u/YOF626]

Factors are an absolute racket.

They make a fortune for doing very little.

[u/foolishbuilder → u/YOF626]

My wife receives the email bill from our factor. She was ill and spent two months out of action. we received a final demand for almost £800.

I called them up to ask what the bill was all about because i paid them and i have no idea how we have a final demand and why it's so much.

they stated missed bills and admin fees and charges.

I queried again that if there has been a missed bill it could only be one Bill over the period my wife was ill, and one bill is normally about £80 - 130 depending on what's been happening.

The apparently charged around £25 quid an email, whether i got them or not they produced a ton of reminder emails (they must have been sending about two a week) which we couldn't find in her account, they also added late payment fees and other nonsense.

So a £100 bill, had turned into £800 in less than 8 weeks,

These are the same cowboys who when i was in a flat, used to force me to take their home insurance policy which at the time was £58 a month when my own home insurance policy was £11 over and above their light bulb fee and their "kind thoughts and wishes fee"

I hate them.

[u/DINNERTIME_CUNT → u/foolishbuilder]

Given behaviour like this I’m amazed they haven’t upset elements of Scotland’s ‘security’ industry and ended up with their offices firebombed.

[u/mata_dan → u/DINNERTIME_CUNT]

The same kinds of blokes own the same kinds of companies.

[u/DINNERTIME_CUNT → u/mata_dan]

That was my next thought.