Notice of small claims procedure
Discussion
A company I did some work for last year took 8 months to pay up. I was on the verge of taking it to court before they did, however once I had the money I sent them an invoice for interest, calculated from the payontime website.
That invoice is now overdue. Do I have to give them any notice before applying to the small claims court? Its only about £50 but its the principle, and frankly I can't be arsed dealing with them any longer.
Also, if I initiated the small claims procedure, and before the court date they paid up, would I be entitled to continue and reclaim my costs if I banked the cheque, or would I need to hold onto it and allow the court to settle things?
That invoice is now overdue. Do I have to give them any notice before applying to the small claims court? Its only about £50 but its the principle, and frankly I can't be arsed dealing with them any longer.
Also, if I initiated the small claims procedure, and before the court date they paid up, would I be entitled to continue and reclaim my costs if I banked the cheque, or would I need to hold onto it and allow the court to settle things?
baguaman said:
let it go... a good businessman would move on... principles associated to 50 quid interest are a waste of time..your business will benefit better from your undivided attention
Agreed , silly to worry about such a small amount & will possibly cost you work in the future especially with this petty attitude when the economy is in such state.You can do it now, but if they argued the case, you may not get costs.
To be able to get yours costs you need to show them you have given them a final demand and directly threatened legal action and given them a deadline to avoid it.
After that, when you do the claim, it is for £50 plus the £30 (or whatever it is now) costs, so £80.
If they do not respond you get it awarded in your favour. If they want to settle before trial, although you can accept less than £80 you don't have to and go all the way to trial.
However... if they are being ballsy they may start looking at your T&Cs and procedure to ensure that the application of interest is contractual and legal. It would have to be explained prior to the contract being finalised, or be the statutory figure in the LPoCD(I) Act.
To be able to get yours costs you need to show them you have given them a final demand and directly threatened legal action and given them a deadline to avoid it.
After that, when you do the claim, it is for £50 plus the £30 (or whatever it is now) costs, so £80.
If they do not respond you get it awarded in your favour. If they want to settle before trial, although you can accept less than £80 you don't have to and go all the way to trial.
However... if they are being ballsy they may start looking at your T&Cs and procedure to ensure that the application of interest is contractual and legal. It would have to be explained prior to the contract being finalised, or be the statutory figure in the LPoCD(I) Act.
JustinP1 said:
You can do it now, but if they argued the case, you may not get costs.
To be able to get yours costs you need to show them you have given them a final demand and directly threatened legal action and given them a deadline to avoid it.
After that, when you do the claim, it is for £50 plus the £30 (or whatever it is now) costs, so £80.
If they do not respond you get it awarded in your favour. If they want to settle before trial, although you can accept less than £80 you don't have to and go all the way to trial.
However... if they are being ballsy they may start looking at your T&Cs and procedure to ensure that the application of interest is contractual and legal. It would have to be explained prior to the contract being finalised, or be the statutory figure in the LPoCD(I) Act.
Its a hearing not a trial for the avoidance of doubt.To be able to get yours costs you need to show them you have given them a final demand and directly threatened legal action and given them a deadline to avoid it.
After that, when you do the claim, it is for £50 plus the £30 (or whatever it is now) costs, so £80.
If they do not respond you get it awarded in your favour. If they want to settle before trial, although you can accept less than £80 you don't have to and go all the way to trial.
However... if they are being ballsy they may start looking at your T&Cs and procedure to ensure that the application of interest is contractual and legal. It would have to be explained prior to the contract being finalised, or be the statutory figure in the LPoCD(I) Act.
You do not need any information regarding interest or statutory compensation in your T&C's as your covered (B2B debts) under The Late Payment of Commercial Debts Interest Act 1998 as ammended and European directive 2000/36/EC
For what its worth forget about it its £50, Add your time into the equation to fight this and its far from worth it. You wont get any costs either as its under £5000
Parrot of Doom said:
That isn't what I asked. I'm not letting it go. Its my money, and I want it.
A man after my own heart. I know your pain.We had a smarmy client who didnt pay us, 8 letter later we issued court summons, he paid just before the hearing. But we had incurred court fees of about £50 and interest. As the sum he paid - although the original debt was now paid in full, because we had issued the summons the debt was now x +court fees and interest.
I filled the return saying the debt was only partially paid, went to court, won, got our court fees, interest, travel cost, a good feeling, the client had a ccj.
Self respect and sticking up for what you beleive in and know to be right is worth more than the money. I wouldnt be selfemployed or happy if I let everyone walk over me.
So, I send them another letter, recorded, giving them...14 days...to pay up. Once they haven't paid (they won't), I then initiate the proceedings?
Even if I can't reclaim costs, it will be worth it just to create trouble for them - especially as the job I did for them was on Christmas Day.
Even if I can't reclaim costs, it will be worth it just to create trouble for them - especially as the job I did for them was on Christmas Day.
Parrot of Doom said:
So, I send them another letter, recorded, giving them...14 days...to pay up. Once they haven't paid (they won't), I then initiate the proceedings?
Even if I can't reclaim costs, it will be worth it just to create trouble for them - especially as the job I did for them was on Christmas Day.
If you win, you will be able to claim court fees, interest and apply for travel costs which you may or may not get.Even if I can't reclaim costs, it will be worth it just to create trouble for them - especially as the job I did for them was on Christmas Day.
If you have already written to them asking for payment twice and told them you will start court action if they dont pay by x date then just make the claim. I woulnt bother with recorded, first class post is deemed to have got there and anyway.
The court will then send a summons by 1st class post and hey presto. You will get some more paperwork and then a court date if they defend. easy as pie. You will feel much better for it I bet.
_Voyager_ said:
Parrot of Doom said:
It won't cost me any work, because I won't ever work for them again.
If your industry is in any way niche (and your profile suggests it is) word will spread and people will find out. Good luck with your claim. Parrot of Doom said:
_Voyager_ said:
Parrot of Doom said:
It won't cost me any work, because I won't ever work for them again.
If your industry is in any way niche (and your profile suggests it is) word will spread and people will find out. Good luck with your claim. In the last decade I have been threatened with a handful of various versions of 'I am going to tell all the X companies in X about you.'
Each time due to the fact that we have either not been paid for work we have completed or the other party has breached our contract and left us 'holding the baby' of substantial costs.
Not once have I heard of any evidence that this has happened. As long as you are in the right no-one wants to willingly advertise the fact that their company doesn't pay their bills.
Hobo said:
Whilst you may be legally right, the best advice given on here is to just move on.
You are p!ss!ng in the proverbial wind.
I agree - but the OP has asked the specific question.You are p!ss!ng in the proverbial wind.
I have been in the same situation where a client will knowledgably and nonchalantly stick two fingers up at you week after week.
The Money Claim Online service is 15 minutes work tops however. 15 minutes for £50?
Hobo said:
If they don't want to pay they simply won't pay.
Ultimately you can get a CCJ against them (which doesn't mean they will pay) & will cost far more to enforce than the money in question, and statutory demand isn't an option due to amount in question.
I don't think many companies will want to find themselves effectively credit blacklisted over £50.Ultimately you can get a CCJ against them (which doesn't mean they will pay) & will cost far more to enforce than the money in question, and statutory demand isn't an option due to amount in question.
Parrot of Doom said:
So, I send them another letter, recorded, giving them...14 days...to pay up. Once they haven't paid (they won't), I then initiate the proceedings?
Even if I can't reclaim costs, it will be worth it just to create trouble for them - especially as the job I did for them was on Christmas Day.
Yes, a 7 day Letter Before Action (use that heading to get their attention) will do informing them that should judgement be entered in your favour they may also be liable for interest and court costs. Send it recorded or proof of delivery to satisfy the Court. No cheque then go for a hearing and exhibit the invoice, your letters and the LBA along with proof of delivery.Even if I can't reclaim costs, it will be worth it just to create trouble for them - especially as the job I did for them was on Christmas Day.
ETA, proof of delivery.
Edited by Boosted LS1 on Tuesday 20th January 23:58
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