Interest charge on money owed.

[Tilly2]

I am in contention with my Dad's care home over the rise in fees and the top-up I have to pay. To cut a very long story short, I currently owe them around two hundred pounds which should have been paid on July 1st. (in advance)

As we are still 'discussing' the fees, I have not paid this amount. Yesterday, I got a letter from them saying, among other things, that if I have not paid by Monday 9th July, they will start charging interest on the unpaid amount. Can they do this?

[boxtops]

It depends what it says on the terms and conditions of your Dad's occupancy - if it says that interest can be charged on late fees, then yes, they can.

[Tilly2]

There's nothing in the contract about interest being paid on late fees, boxtops.

[boxtops]

Challenge it, then. Especially as you're not just ignoring the debt, they know it's still under discussion.

[factor-fiction]

Have they mentioned a rate of interest, Tilly?
It may just be a standard letter they issue whenever a payment is late. I would just write and say you expect that the interest will not be charged as this stage as the level of payments hasn't been agreed.
My answer assumes you have paid some of your fees and that you have just withheld the disputed additional amount.

[Brinjal]

Yes if it is not stipulated in the contract they can't charge also usually you must be in default thirty days before they can charge. Tell them they are contravening the usury act.

[Tilly2]

I have challenged it. I rang them yesterday, mentioned the contract, and asked what they meant by 'charging interest' and how much interest they were going to charge.
They said they needed to find out how much they were allowed to charge. I asked who was going to 'allow' them but they said they needed to discuss it amongst themselves. And so it went, on and on. Running a business, recouping money, can't provide services etc. etc.

How can I stop them making up the rules as they go along? What sort of solicitor do I need? Contract, family, probate? I have no idea.

[factor-fiction]

They are just using the threat as part of their negotiating position as they try to get you to pay the fees they believe are payable under the contract. Unfortunately now I can't remember the original point of contention- I'll need to look back at your previous thread, although I recall it was hijacked a little by the usual interloper under one or more IDs on these care home fee threads.

[dzug2]

<<Tell them they are contravening the usury act. >>

They may or may not be - but as the Usury Act was repealed in 1854 it's really not helpful

[Tilly2]

Thanks factor. I would appreciate that.

[factor-fiction]

Tilly- I'm going out so it'll be later this morning before I get chance to look at your previous thread

[Tilly2]

Have a nice time, factor. Thank you.

[EDDIE51]

Having looked back on your posts I see your Dads case is complicated. I would ask 'AgeUK' for help , they have specialist knowledge of the legal side of care home funding and fees and offer a free advice service.

[Tilly2]

Thanks eddies. I did go to Age UK right at the start. Perhaps I need to go back. Also went to CAB. They were not very helpful.

[cathfromsaron]

is this your dad's *own* money you are paying from or yours?

if it is yours, i would doubt very much they can screw you for a bill in this manner ... and if it is his, you should get him a solicitor pronto!

[Tilly2]

It's my money,cath.
Dad's not allowed to pay his own top up. His money is safe, apart from the fact that he now has to pay £30 per week more. I have to pay £100.18 per week which works out to be £437.19 per month.

£100.89 X 52 = £5246.28
£5246.28 divided by 12 = £100.89

[tonyav]

Tilly, could you not put a FAO barmaid post up, I'm pretty sure she would be able to tell you what type of solicitor you would need to consult.

[EDDIE51]

Yes get back to AgeUK and tell them the new details. In view of what you have said about your Dads condition I am very surprised he does not qualify for 100% NHS funding. AgeUK can help to challenge the funding decision.

[factor-fiction]

I will re-read your previous thread but I am confused by the statement "Dad's not allowed to pay his own top up. His money is safe...". Are you saying he has savings?

[bednobs]

why can't your dad pay his own top up tilly?
if it gives him a better quality of life/nicer room, why not spend it?
Anyway, as Factor has said, have you paid the usual amount of top up, and are just witholding the disputed amount?

[EDDIE51]

There is a level of savings which are 'safe' and can not be touched for care home fees , I think this is what Tilly is refering to.
Tilly please get AgeUK to look at the funding for your Dad's care there are very many cases where relatives are paying for care that should be 100% funded by the council or NHS , with what you have previously said about your Dads history he may very well be one of them.