Unfair late payment fees — profiting from their own system failure
IWG/Regus charged an 8% late payment fee on my invoice after their own automated payment system failed to charge my card on file. They admitted the failure was on their end, yet still refused to remove the fee. When I raised the issue across multiple emails, they refused to engage with the substance of the dispute or even identify the contractual clause they relied upon. The late payment fee terms are buried in House Rules that aren't publicly accessible online. I've had to escalate to the CMA, Small Business Commissioner, and am preparing County Court proceedings. Avoid if you're a small business — the terms are non-negotiable and the dispute resolution is nonexistent.
Reply from IWG plc - 100 Bishopsgate
Hello Antonio,
We are sorry to receive your frustrations.
Our invoices are payable no later than on the 15th day of the month.
If payment is not received by the due date, we incur administration costs and, though we would like to avoid charging you for this, we must pass on a late fee to you. You can review invoice and payment dates on your statement of account, available in your online account (myregus.com).
As displayed in your online statement, your invoice was paid on date, and as a result your account with us has incurred a late payment fee.
We do understand that it can take time to set-up payments. You can save this time by arranging automated payments to avoid incurring late fees. Setting up a direct debit or credit card payment is extremely easy. You should log onto your online account and visit the My Account > Billing and payments section to adjust your settings. You’ll still receive your invoices well before the payment date, giving you time to review them and if needed, seek clarification.
We have provided a positive outcome on this occasion but if you have more questions, please do not hesitate to check your account online, contact us via the ‘Help’ section or ask any questions to our AI chatbot Aurora.
Thank you for your business,
Lorraine Brule
Global Customer Service at IWG
