FAQ – Debt Prevention and Arrears Management Policy

1. Why am I being charged for factoring services?

Highland Residential (HRIL) provides property management services under your title deeds. These services vary across developments and may include grounds maintenance, common stairwell maintenance and cleaning, block repairs, and block insurance. Charges are based on the services you receive and are outlined in your Written Statement of Services, in line with the Property Factors (Scotland) Act 2011.

2. What happens if I cannot pay my factoring charges?

HRIL takes a supportive approach. If you miss a payment, we will contact you promptly to discuss your situation and offer help, including setting up a repayment plan or signposting to free debt advice services like Citizens Advice.

3. Will I be charged extra for late payments?

Yes. If no repayment arrangement is in place and payment is missed, reminder letters will incur a charge of £10 each (reviewed annually). These charges relating to late payment letters are capped at £50 in total and are added to your account. Should the matter be referred to a solicitor for potential legal proceedings to recover a debt, these additional costs will also be added to your account.

4. Can HRIL take legal action if I do not pay?

Legal action is a last resort. If all other recovery efforts fail, HRIL will pursue legal options such as:
– CCJ – County Court Judgment which will affect your credit score
– Small claims
– Wage or bank arrestment
– Notice of Potential Liability (NOPL) on your property
All legal costs will be added to your account.

5. What if I dispute a charge or service quality?

If you raise a formal complaint about service quality, debt recovery will be paused while we investigate. If the complaint is upheld, charges may be reduced or removed. If not, full recovery will resume. Disputes can also be referred to the First-tier Tribunal for Scotland, which will suspend recovery until a decision is made.

6. Can HRIL recover unpaid debts from other homeowners?

In some cases, yes. If your title deeds allow it, HRIL may recover unpaid charges from other homeowners in your scheme. This will only happen after all other recovery options have failed and you have been given at least 28 days’ notice.

7. How are charges calculated and when are they billed?

Charges are set according to your title deeds, shared equally amongst all property owners on the named development, and are billed quarterly. HRIL ensures charges are accurate and clearly itemised. Preferred payment is by Direct Debit, but other options like Standing Order or one-off payments are available.

8. What protections do I have under Scottish law?

Under the Property Factors (Scotland) Act 2011, HRIL must:
– Be registered as a property factor
– Provide a Written Statement of Services
– Follow the Code of Conduct, including fair debt recovery practices
– Pause recovery during Tribunal disputes

Failure to comply can result in enforcement orders or landlord removal from the register.