Interest charged by the society

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This query is : Resolved

Quick Summary

A building society made a billing error, leading to a reduced maintenance charge which the resident paid. The society later corrected the error by adding the underpaid amount to the next bill. However, they also charged 21% interest on the wrongly credited amount. The advice given is that the resident should pay the difference but is not liable for interest, as the error was not their fault and they paid the amount initially demanded.

Alex Abraham

Alex Abraham (Querist)

19 September 2021 My building society had made some billing error in my monthly maintenance bill and based on this some amount was wrongly credit to my maintenance bill; as a result my monthly charges got reduced for that month based on this error. I paid the bill as per this new amount mentioned or demanded. In the next month the society noticed the billing error and they corrected this by adding the wrong credit amount given to the current months bill this was accepted. But along with differential amount they charged me interest at 21% for wrong credit given to me by society. Please advice if this is acceptable and can they charge this interest

Dhirajlal Rambhia online

Dhirajlal Rambhia

(Expert)

20 September 2021 NO. Its not your fault. You paid bill as per their demand. If any mistake was there from their end, you should be ready to pay the difference; but they cannot charge interest for that.

Message likes : 1 times

Alex Abraham

Alex Abraham (Querist)

05 October 2021 The above query has been resolved

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