Non paying garage customer
Discussion
Hi all, seeking a little advice please.
I have been running a small garage business for the past 5 years or so, and we now have our first non-paying customer.
The guy is a trader (or purports to be) and appears to have bought a right lemon of a car at the auctions.
We have carried out a considerable amount of work on the engine, the necessity of which has not been disputed, and are charging roughly £1300, which has also not been contested.
That was over 8 weeks ago, since when we've been waiting for payment and have been stuck with his car which has been a real nuisance as we really don't have space for storing cars.
We've had every excuse and he's promised (yet again) to come in today - but I doubt he will.
I don't think we're going to get paid, he clearly doesn't have a business and I don't think he has the money.
So what can we do? I'd like to take the car and sell on at auctions. The other slight problem is that this car also has another major problem, not apparent until we sorted the engine and drove it, and I haven't informed the customer of this through fear of the car being dumped on us.
I'd like to take the car and sell at auction - if I do so as is we'll get half our money back, or if we carry out the major repair we might just about break even, ignoring the fact that we've been stuck with the car for over 2 months.
I'll have to take (and pay for) proper legal advice in the new year, but meantime I'd be grateful for advice from PH, give me something to mull over during the break. I'd add that I'd also like to resolve this as easily as possible.
Apart from maybe - how does one go about getting bailiffs involved as per those tv programmes?
I have been running a small garage business for the past 5 years or so, and we now have our first non-paying customer.
The guy is a trader (or purports to be) and appears to have bought a right lemon of a car at the auctions.
We have carried out a considerable amount of work on the engine, the necessity of which has not been disputed, and are charging roughly £1300, which has also not been contested.
That was over 8 weeks ago, since when we've been waiting for payment and have been stuck with his car which has been a real nuisance as we really don't have space for storing cars.
We've had every excuse and he's promised (yet again) to come in today - but I doubt he will.
I don't think we're going to get paid, he clearly doesn't have a business and I don't think he has the money.
So what can we do? I'd like to take the car and sell on at auctions. The other slight problem is that this car also has another major problem, not apparent until we sorted the engine and drove it, and I haven't informed the customer of this through fear of the car being dumped on us.
I'd like to take the car and sell at auction - if I do so as is we'll get half our money back, or if we carry out the major repair we might just about break even, ignoring the fact that we've been stuck with the car for over 2 months.
I'll have to take (and pay for) proper legal advice in the new year, but meantime I'd be grateful for advice from PH, give me something to mull over during the break. I'd add that I'd also like to resolve this as easily as possible.
Apart from maybe - how does one go about getting bailiffs involved as per those tv programmes?
PurpleMoonlight said:
You will need to obtain a CCJ against him before you can engage the likes of bailiffs.
Yep - you'll find the procedure online. You'll need to start writing him some letters with deadlines. You can't sell the car, it's not yours to sell.Note that the bailiffs you see on TV are High Court bailiffs, the commandos of the justice world, but you are many steps away from that, and hopefully it will be resolved long before that.
E36GUY said:
I'd write to him giving him 2 further weeks stating a specific end date to settle his bill or you will scrap the vehicle.
If he doesn't pay, scrap it or apply for a replacement V5 from DVLA and sell it on.
I suspect that may entitle him to sue the OP for the value of of the car. If he doesn't pay, scrap it or apply for a replacement V5 from DVLA and sell it on.
If this is likely to end up in court, play it clean.
What spikey Said ^^
Likely is he's skint, has an over indulgent family, and a wife who has just gone bezerk on the Barclaycard.
Don't let the car out of your sight, and don't sell it.
Write him a letter, giving two weeks for payment, best make it mid-Jan to allow for Christmas post/non-working days. Make it clear in the letter that that this is your final request for payment and that after the stated date you will commence recovery of funds through the court system without further notice.
As the date approaches, phone him. Be amicable - know one wants to go to court, try and resolve it. If he doesn't play ball, file a claim with MCOL, will cost you a few quid.
Then you have the waiting game, and paperwork exchanging, and eventually, if he still doesn't play ball, you get your day in court. It doesn't end there though...
Recovering money is a long and drawn out process, so it's always better to try and sort it without having to go to court, even if it means taking a small hit (If the bill is £1300, settle at £1000 for instance), you'll lose more money than that spending time on the court process.
Likely is he's skint, has an over indulgent family, and a wife who has just gone bezerk on the Barclaycard.
Don't let the car out of your sight, and don't sell it.
Write him a letter, giving two weeks for payment, best make it mid-Jan to allow for Christmas post/non-working days. Make it clear in the letter that that this is your final request for payment and that after the stated date you will commence recovery of funds through the court system without further notice.
As the date approaches, phone him. Be amicable - know one wants to go to court, try and resolve it. If he doesn't play ball, file a claim with MCOL, will cost you a few quid.
Then you have the waiting game, and paperwork exchanging, and eventually, if he still doesn't play ball, you get your day in court. It doesn't end there though...
Recovering money is a long and drawn out process, so it's always better to try and sort it without having to go to court, even if it means taking a small hit (If the bill is £1300, settle at £1000 for instance), you'll lose more money than that spending time on the court process.
Call him and offer a compromise which doesn't involve him paying cash he doesn't have. Get him to sign the car over to you in exchange for writing off the debt, otherwise you will go all legal on his ass. He will likely comply and that will be the end of it, with no potential comebacks.
RobinOakapple said:
Call him and offer a compromise which doesn't involve him paying cash he doesn't have. Get him to sign the car over to you in exchange for writing off the debt, otherwise you will go all legal on his ass. He will likely comply and that will be the end of it, with no potential comebacks.
Quite agree. You can't sell the car as you don't own it, but you don't really want to go to court when it will get you bogged down in paper work and hassle.IANAL, but from my days in the trade, I have a figure of 6 months in my mind as the point where you can dispose of the car. You can also charge for storage.
Also, have you proof he authorised the work and the £1300?
If not he COULD pay what he has authorised, take the car and leave you to fight over the difference. If he does this you can't legally stop him taking it, you can only do that if he pays nothing at all.
You need to get your ducks in a row here, a proper paper trail, records of phone calls, what was said and by whom etc etc etc. Without it you're on to a loser, which by the sound of it, you probably are anyway.
Also, have you proof he authorised the work and the £1300?
If not he COULD pay what he has authorised, take the car and leave you to fight over the difference. If he does this you can't legally stop him taking it, you can only do that if he pays nothing at all.
You need to get your ducks in a row here, a proper paper trail, records of phone calls, what was said and by whom etc etc etc. Without it you're on to a loser, which by the sound of it, you probably are anyway.
Sunnyone said:
Get the court papers and fill out all the details in pen except his name, put that in pencil and send/give them to him. Tell him that the next time he sees this it will include his name. This has worked for us as it shows you are serious.
What a complete waste of time, either fill the forms in for real or don't bother.berlintaxi said:
Sunnyone said:
Get the court papers and fill out all the details in pen except his name, put that in pencil and send/give them to him. Tell him that the next time he sees this it will include his name. This has worked for us as it shows you are serious.
What a complete waste of time, either fill the forms in for real or don't bother.Send him a statutory demand for payment. If he's not a ltd company, the form clearly states that failure to respond within 21 days can result in bankruptcy proceedings. If a ltd company it's winding up proceedings. It shows you're serious & costs nothing to issue beyond the cost of special delivery.
I've used this method successfully twice this year. Payment in full within days.
I've used this method successfully twice this year. Payment in full within days.
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