B2C Debt recovery steps

[northernladuk]

So a company owes me around 5k. They imposed a 90 day payment term from the off. That's 90 working days so nearly four and a half months. Nothing about this in their T&C's. They admitted it's because they need to recoup some money so begging from Peter to pay Paul but that rarely ends well. I notice today they've changed their name at companies house which I'm sure doesn't change anything as it's recorded as 'Previously known as'. Their website has had the company house details removed so getting very nervous now. Still three months to go before payment so think it's time to go for the jugular.

They will be very bolshie when I deal with them so wondering if going in hard is the way. I'm pretty sure the 90 working days isn't legal, or at the very least unfair and wasn't in their terms which a small claims court won't take kindly. I'm sure they won't respond to any communication from me, so what's next?

Should I go straight for a solicitors letter outlining their unfair practices, demand the money our court? Or should I just use the time with solicitor to get my case outlined and go straight for small claims?

They are registered at one of the two common post forwarding type services in London. This means there is someone in between communication between me and them, something I need to be worried about or can do anything about?

[pr1]

Why do they owe you around 5k?
Why did you accept 90 working day payment terms in the contract you signed before you delivered the work if you weren't happy with it?

Did you sign a contract with no mention of payment terms?

In reality I don't think there's much you can do until they miss the payment terms you've agreed to either in the specific contract you signed or the overarching T&C's of engagement between both companies.. certainly not 3 months before payment is due anyway

If you both agreed to shorter terms than that, then that's your avenue for chasing earlier payment - but you didn't mention that in your OP so I'm assuming you didn't

[Maslins]

Small claims court is cheap and straight forward. But if you lodge a claim before taking all reasonable steps to pursue beforehand, that'll work against you. Google "pre-action protocol" and have a read. Keep your communications to them firm but professional. If needs be, send letters recorded delivery and keep evidence of delivery, minimise risk they later argue they never got your correspondence.

An automated solicitor letter will also be cheap and straight forward. Though the client can easily ignore it with no consequences (or at least no consequences that don't cost you a lot more cash/time/effort). Getting proper solicitor support is unlikely to be financially viable for a debt of that level. Bespoke letters could easily cost a grand a pop, with no guarantee of getting you anywhere.

[northernladuk]

Why do they owe you around 5k?
Why did you accept 90 working day payment terms in the contract you signed before you delivered the work if you weren't happy with it?

Did you sign a contract with no mention of payment terms?

In reality I don't think there's much you can do until they miss the payment terms you've agreed to either in the specific contract you signed or the overarching T&C's of engagement between both companies.. certainly not 3 months before payment is due anyway

If you both agreed to shorter terms than that, then that's your avenue for chasing earlier payment - but you didn't mention that in your OP so I'm assuming you didn't

It's an online competition win. I won the prize and then they sent me a letter saying they can't pay me for 90 days due to cash flow. Nothing in the T&C's about payment terms. They've paid other smaller stuff on time up to now.

The issue is the 90 working days and that's what I need to address. There are no payment terms and they dropped this on me once I'd won so were not agreed upfront. No agreement, dropped on me after the event, horrendously long. I'll have to prove to them it's illegal, unfair or whatever to take the dispute further or else they'll just say they are still within payment terms and I'll get nowhere. I could do with some legal help with that bit even if I don't use a solicitor to take the whole issue forward.

[northernladuk]

Small claims court is cheap and straight forward. But if you lodge a claim before taking all reasonable steps to pursue beforehand, that'll work against you. Google "pre-action protocol" and have a read. Keep your communications to them firm but professional. If needs be, send letters recorded delivery and keep evidence of delivery, minimise risk they later argue they never got your correspondence.

An automated solicitor letter will also be cheap and straight forward. Though the client can easily ignore it with no consequences (or at least no consequences that don't cost you a lot more cash/time/effort). Getting proper solicitor support is unlikely to be financially viable for a debt of that level. Bespoke letters could easily cost a grand a pop, with no guarantee of getting you anywhere.

I'll have a look at this thank you. I've followed this process before albeit awhile ago now. I just know they are going to act hardball and probably go silent on me. It's just the 90 day issue I need to sort so I can start action now rather than having to wait until they've disappeared in to the ether.

[pr1]

It's an online competition win. I won the prize and then they sent me a letter saying they can't pay me for 90 days due to cash flow. Nothing in the T&C's about payment terms. They've paid other smaller stuff on time up to now.

The issue is the 90 working days and that's what I need to address. There are no payment terms and they dropped this on me once I'd won so were not agreed upfront. No agreement, dropped on me after the event, horrendously long. I'll have to prove to them it's illegal, unfair or whatever to take the dispute further or else they'll just say they are still within payment terms and I'll get nowhere. I could do with some legal help with that bit even if I don't use a solicitor to take the whole issue forward.

In that case I think you're in a really tough situation... no "material loss" or time/money invested other than what it cost you to enter the competition and no agreed terms to fall back on. Asking a solicitor to get involved is going to get expensive fast. I get the feeling you're in a financial position not to "need" this money sooner so perhaps just try not to stress about it too much about it until those 90 days have passed

[northernladuk]

In that case I think you're in a really tough situation... no "material loss" or time/money invested other than what it cost you to enter the competition and no agreed terms to fall back on. Asking a solicitor to get involved is going to get expensive fast. I get the feeling you're in a financial position not to "need" this money sooner so perhaps just try not to stress about it too much about it until those 90 days have passed

Yep, just as you say. I'm not out of pocket so at the very worst I shrug my shoulders and get on and just live with the bitter memory I got ripped off but I'll not take it lying down. Not stressed at all about it, just growing annoyance of someone taking the piss if you get me.

I just had a thought this weekend that blowing a hole in the imposed payment and getting in early might help rather than give then 4 months to go bust and disappear.

I'll keep digging on the legalities of the 90 days as it's a standard payment term there is so much info I can't find the details i need to match my situation.

[woody1]

Where do they get the money from that they're paying prizes with? Perhaps they've greatly overextended.

I wonder how many other winners they owe...

[northernladuk]

Where do they get the money from that they're paying prizes with? Perhaps they've greatly overextended.

I wonder how many other winners they owe...

They have indeed. Not unusual for new sites to start big thinking it's easy and get behind. Easy enough to see the warning signs but in this case they looked very professional but have way overspent on advertising and promotion which hasn't worked as quickly as they wanted. I don't think they had much of a float to start were going straight off the takings from the ticket sales so have been behind very early. I believe there is only one other person owed a bit less but same terms imposed.

Half of the thought I had was to also nobble them for my money first while he waits out the 90 days and jump the queue.

[pr1]

Sounds like their business plan is a perfect template of a ponzi scheme, probably don't bother entering any more comps