Non Response To Letter Before Action
Discussion
Few weeks back mate said he's been owed a high 4 figure sum since early March and has a letter dated late Feb promising to pay the sum. Mentioned that on (the admittedly only 2) times I've been owed money a letter before action using a template I found online has worked. So he said can you do same for me?
Hadn't heard of the debtor but researched them online and saw they're a very large (as in 9 figure) organisation so it's obviously a case of won't pay rather than can't pay. Found the CFO's name and sent him a letter before action by email and recorded delivery offering 14 days to respond. Confidently said they're bound to respond to this. But no reply.
Seems very strange that such a large organisation would ignore a letter before action. The only option was to file a claim via money claim and pay the fee of £455 which he did last Friday. Clearly the fee's a gamble, asked for interest + costs.
Given the very clear letter he has promising payment, the fact the organisation can obviously afford it and ignoring the letter before action I can't see any way to lose.
Something about this doesn't smell right so maybe missing something obvious?
Hadn't heard of the debtor but researched them online and saw they're a very large (as in 9 figure) organisation so it's obviously a case of won't pay rather than can't pay. Found the CFO's name and sent him a letter before action by email and recorded delivery offering 14 days to respond. Confidently said they're bound to respond to this. But no reply.
Seems very strange that such a large organisation would ignore a letter before action. The only option was to file a claim via money claim and pay the fee of £455 which he did last Friday. Clearly the fee's a gamble, asked for interest + costs.
Given the very clear letter he has promising payment, the fact the organisation can obviously afford it and ignoring the letter before action I can't see any way to lose.
Something about this doesn't smell right so maybe missing something obvious?
To be sure I just called and asked for the name of the CFO. The girl that answered the phone was very cagey asking why I want to know. Told her because I've just taken legal action and wanted to make sure that [name I have] is the CFO.
She put me on hold then came back and said yes [he] is the CFO. Asked to speak to him to possibly avoid legal action and the girl said we're not allowed to put anyone through to him. OK does he have a secretary/assistant? Yes of course he does. Can I speak to her? I'm not allowed to put you through.
My perception is they're on the wrong end of various owing money issues but they're well insulated. But they can't avoid/ignore court action.
She put me on hold then came back and said yes [he] is the CFO. Asked to speak to him to possibly avoid legal action and the girl said we're not allowed to put anyone through to him. OK does he have a secretary/assistant? Yes of course he does. Can I speak to her? I'm not allowed to put you through.
My perception is they're on the wrong end of various owing money issues but they're well insulated. But they can't avoid/ignore court action.
jonsp]To be sure I just called and asked for the name of the CFO. The girl that answered the phone was very cagey asking why I want to know. Told her because I've just taken legal action and wanted to make sure that [name I have said:
is the CFO.
She put me on hold then came back and said yes [he] is the CFO. Asked to speak to him to possibly avoid legal action and the girl said we're not allowed to put anyone through to him. OK does he have a secretary/assistant? Yes of course he does. Can I speak to her? I'm not allowed to put you through.
My perception is they're on the wrong end of various owing money issues but they're well insulated. But they can't avoid/ignore court action.
re: being well-insulated it's not the CFO or CEO that are [personally liable, it's the Corporate Body so, as long as you've delievered it to the Registered Address you should be OK.She put me on hold then came back and said yes [he] is the CFO. Asked to speak to him to possibly avoid legal action and the girl said we're not allowed to put anyone through to him. OK does he have a secretary/assistant? Yes of course he does. Can I speak to her? I'm not allowed to put you through.
My perception is they're on the wrong end of various owing money issues but they're well insulated. But they can't avoid/ignore court action.
A few years ago my mate had only TPF&T insurance and his car was damaged by a Bin Lorry, belonging to a large organisation. (The air tank for the brakes was spat across the road, straight under his sump..Lorry now blocking road, due to fail safe air brakes, Astra blocking the road due to being on top of the air tank. Police called, photos taken. He got a mate to tow him home, and then went to a scrap yard for a new sump. Got 3 quotes for repair. All of which were more than the car was worth.
Company and their insurer ignored his calls and letters, so he went to what was the small claims court. 6 months later
Nobody from company turned up.
Judge ruled in his favour, added interest, lost earnings, parking, lunch.
Company didn't pay up
Mate paid for court bailiff to collect. First thing the CEO knows is that there's a bailiff, valuing his le-corbisier office chair at £20, his top of the range PC at £50, his cut glass decanters at £12. And starting to remove them. Finance director eventually opens the safe and finds £2k in cash.
My point. Depending on how much you are owed, up to £100k money claims on line is easy enough to use.
Company and their insurer ignored his calls and letters, so he went to what was the small claims court. 6 months later
Nobody from company turned up.
Judge ruled in his favour, added interest, lost earnings, parking, lunch.
Company didn't pay up
Mate paid for court bailiff to collect. First thing the CEO knows is that there's a bailiff, valuing his le-corbisier office chair at £20, his top of the range PC at £50, his cut glass decanters at £12. And starting to remove them. Finance director eventually opens the safe and finds £2k in cash.
My point. Depending on how much you are owed, up to £100k money claims on line is easy enough to use.
https://find-and-update.company-information.servic...
If you want to find out more about a company and their directors and accounts and stuff, start with the link above.
If you want to find out more about a company and their directors and accounts and stuff, start with the link above.
Simpo Two said:
jonsp said:
My perception is they're on the wrong end of various owing money issues but they're well insulated. But they can't avoid/ignore court action.
Yes they can. Ignoring is the first and easiest defence.Claim filed and they have until 27 August to respond - presumably they'll leave it until the last minute. But if they don't respond mate can obtain a CCJ by default. Given the size of the organisation it's obviously not a can't pay/need time to pay situation so there should be no issue getting the money.
Looking at their accounts they have a lot of debt but a very strong credit rating so fair to assume they can't afford a CCJ to screw their credit rating.
My only concern is when something seems too easy a wheel always ends up coming off. Maybe this really is easy and they just don't pay until somebody sues them.
jonsp said:
Simpo Two said:
jonsp said:
My perception is they're on the wrong end of various owing money issues but they're well insulated. But they can't avoid/ignore court action.
Yes they can. Ignoring is the first and easiest defence.Claim filed and they have until 27 August to respond - presumably they'll leave it until the last minute. But if they don't respond mate can obtain a CCJ by default. Given the size of the organisation it's obviously not a can't pay/need time to pay situation so there should be no issue getting the money.
Looking at their accounts they have a lot of debt but a very strong credit rating so fair to assume they can't afford a CCJ to screw their credit rating.
My only concern is when something seems too easy a wheel always ends up coming off. Maybe this really is easy and they just don't pay until somebody sues them.
k you, still not paying'. It all depends how aggressive and/or stupid they are. It's a game of chess and bluff, but ultimately it comes down to facts and determination.Thanks. Everything I've seen suggests the debtor is definitely not stupid but they don't like paying their bills. Mate has very clear evidence of how the debt arose and a paper letter/post signed by the Area Manager he'd dealt with promising payment of the sum in question dated late Feb.
I'm hoping it is just a case of them waiting until somebody sues then until the last minute then sending a cheque. C**ts.
I'm hoping it is just a case of them waiting until somebody sues then until the last minute then sending a cheque. C**ts.
jonsp said:
I'm hoping it is just a case of them waiting until somebody sues then until the last minute then sending a cheque. C**ts.
I'm not sure if you could then sue for the £455 fee you paid. Perhaps somebody else knows that.In my case it went to court and the judge added all my costs and expenses to the final sum.
If it were me I’d sack of the CCJ route and go down the Winding Up route by issuing a statutory demand.
If the debt is not disputed they will definately pay. I’ve just done the same to a company that owed me a few k as the small claims route (moneyclaim online) is a shambles and can be drawn out for months should they wish, where a stat demand cannot.
If the debt is not disputed they will definately pay. I’ve just done the same to a company that owed me a few k as the small claims route (moneyclaim online) is a shambles and can be drawn out for months should they wish, where a stat demand cannot.
Hobo said:
If it were me I’d sack of the CCJ route and go down the Winding Up route by issuing a statutory demand.
If the debt is not disputed they will definately pay. I’ve just done the same to a company that owed me a few k as the small claims route (moneyclaim online) is a shambles and can be drawn out for months should they wish, where a stat demand cannot.
WUO is a lot more expensive. If they do get a CCJ and still don't pay, you can apply for a Third Party Debt Order N349, which can go to their bank and acquire the payment owed.If the debt is not disputed they will definately pay. I’ve just done the same to a company that owed me a few k as the small claims route (moneyclaim online) is a shambles and can be drawn out for months should they wish, where a stat demand cannot.
A CCJ is a pain in the arse for any company, especially if they want/use credit
About 10 years back I worked for a firm who were known not to pay bills in a timely manner.
I'm in the CFO's chatting about something when his PA comes in.
PA: X is in reception, he said he's come for his payment
CFO: Tell him I'm not in
PA: He told me to tell you he knows you're here because you car is in the car park and he's not leaving until he's paid
CFO: st
I was excused. Guy was still in reception 5 hours later. However, he did get paid
I left shortly after as the CFO was a.
Within 12 months the firm went bust
I'm in the CFO's chatting about something when his PA comes in.
PA: X is in reception, he said he's come for his payment
CFO: Tell him I'm not in
PA: He told me to tell you he knows you're here because you car is in the car park and he's not leaving until he's paid
CFO: s
tI was excused. Guy was still in reception 5 hours later. However, he did get paid
I left shortly after as the CFO was a
.Within 12 months the firm went bust
lifeboat22 said:
WUO is a lot more expensive. If they do get a CCJ and still don't pay, you can apply for a Third Party Debt Order N349, which can go to their bank and acquire the payment owed.
A CCJ is a pain in the arse for any company, especially if they want/use credit
A CCJ main be a pain, but is potentially a very timely one to achieve. Even though the supplier in question has admitted the debt, this does not stop them claiming it now to be in dispute should they so wish, which then defers matters significant periods whilst 'mediation' is tried, etc, etc. They will fully understand this and so, should they choose, become a complete pain.A CCJ is a pain in the arse for any company, especially if they want/use credit
On the other hand, issuing a Statutory Demand (which is free to do) gives the supplier 21 days from issue/receipt to apply to the court to have the matter set aside, and on the basis the debt is not disputed, the court will simply not allow such which will ultimately allow the OP to issue winding up proceedings should he so wish. As we all know though, it won't come to that as whilst a CCJ is a 'pain in the arse', a winding up petition is 'terminal', ie bank accounts frozen, complete loss of credit, etc, etc.
I know which route I'd be taking these days on an undisputed debt after having had to go both routes recently to recovery monies due to me.
Just to update this. The deadline for the debtor to respond is 4pm today. No contact with mate directly or via the online portal so fair to assume they're not going to respond today. Assuming they don't seems next step is to apply for a default judgement, obviously mate will do that at 1 minute past 4.
Honestly don't understand what they're playing at here. They've promised, in writing, to pay the debt and never disputed/tried to negotiate it. They've ignored all attempts at communication and ignored the Letter Before Action. The sum is trivial to them so it's not a can't pay situation.
Have to assume they make a habit of ignoring requests for payment so they must have some strategy - maybe just hoping people give up chasing? Obviously mate isn't going to write off a high 4 figure sum.
It seems like an open and shut case - unless we're missing something obvious?
Honestly don't understand what they're playing at here. They've promised, in writing, to pay the debt and never disputed/tried to negotiate it. They've ignored all attempts at communication and ignored the Letter Before Action. The sum is trivial to them so it's not a can't pay situation.
Have to assume they make a habit of ignoring requests for payment so they must have some strategy - maybe just hoping people give up chasing? Obviously mate isn't going to write off a high 4 figure sum.
It seems like an open and shut case - unless we're missing something obvious?
Edited by jonsp on Tuesday 27th August 13:28
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