Management Agent Charging Admin fee for Standing Order

Hello
I hope I am posting in the right forum - I have a question that I cannot seem to find an answer for and need some help please.

I live in block of privately owned flats (50) and we have a managment agent who charges us a fee each year. I have just received the latest Service Charge demand which includes the option of paying by standing order on a monthly basis - BUT I am being asked to pay £2 per month for this. £24 extra per year. I am guessing that most of the other people living in the block also pay by standing order which means they are getting another £1200 on top of what they already charge!
Are they allowed to do this? I have been living in the block for nearly 5 years and this is the first year that they have done this.
Thank you.

Check your lease agreement and see what it says about the payment of fees. Most say that 100% is due within 14 days of the service charge demand so the company are facilitating you by allowing you to pay by SO. Tracking SOs is a very time consuming job, especially in larger developments so it's possible that the agent is passing on the cost. The other disadvantage is that some companies (like some insurance companies) charge extra if you don't pay the full premium up front. If everyone pays by SO, the insurance cost will go up.

However, most directors I know are going out of their way to make it easier for people to pay right now so if you have a word with them, they might be able to do something about it.

Thank you very much for your reply. I did check my lease before posting and the section dealing with service charge makes no mention of it needing to be paid within a certain period of time (ie 14 or 28 days) - just that is must be paid. I have since spoken to another resident and they also came to the same opinion(in case I had missed something).

Our directors are another sore point. One no longer lives in the development and we only see him at residents meetings (which are only held once a year if we are lucky). The other two were recently elected but not at an agm that residents were invited to so I have no idea who nominated them or seconded them. At the last meeting they sat in a little group and said nothing. All questions were answered by the Managment agent - even when a question was directed at them.

I am not sure that they can just elect directors behind closed doors can they?

Thank you again for any help.

If a director resigns between AGMs, the directors can usually co-opt someone as a temporary replacement director. That person must resign but can be nominated for election at the next AGM.

If you're not happy with the board, one third of them must resign at each AGM and when they're nominated for re-election, that's when you can vote against them or get yourself nominated.

Thanks. I questioned the appointment of the new directors - I think you are right that a director did resign mid term but was told that they had the right to elect new people and they did not need to hold an AGM. These two did not resign at the last residents meeting and there was no mention of this. Without being too cheeky - do you know anything about a director still holding his place whilst not actually living on the development? I dont know if he still owns a property and has rented it out or sold it. The directors we do have are completely faceless and quite frankly usless. The M.A. seems to be running the whole thing and the residents are just told what to pay and when.

Also (Sorry!) is there anything I can quote to the M.A re the directors that they have appointed because it sounds like from what you have advised that they are not properly elected directors?

Thank you so much.
PS - If the lease makes no mention of timescale for paying am I right in assuming that they cannot / should not charge us?

Thanks

Once someone owns a unit they are a member of the management company and therefore entitled to be a director. It doesn't matter where they live.

The directors can co-opt other directors at any time, once the new director is a member of the management company.

If the MA offers a dd payment option there are costs they have to pay as the bank charges per transaction. €2 per month sounds fair to me, as someone who deals with direct debits I know the charges and also the amount of time spent chasing up bounced dds.

Finally this thread should be in the Management Company forum, not sure how you missed it OP.

Am sorry. Will post there in future. Thank you for help.