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The agency will not pay invoices and go stealth mode

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    The agency will not pay invoices and go stealth mode

    Fellow contractors,
    After number of years running my own IT consultancy company, I have eventually entered into agreement with some untrustworthy agency who currently will pay and will not respond to payment reminders. Need your expert advice:
    Note: I am seeking a legal advice in parallel to this thread, but also keen to hear out other recommendations.
    My company (A) provides IT Architectural services to company (D). My company has a contract with very small agency (B) and they have a contract with a large IT Constancy company (C).
    The payments are always processed in time from D to C and from C to B. However, the agency (B) will systematically delay payments into my company (A). The payment terms between A and B are 20 days, however they payments are always delayed by 5-6 days.
    Now, in the most recent case they payment for August was delayed by approx. 40 days and the payment for September is delayed by 19 days. I am trying to engage with the Agency (B) via phone, email, text, post – to no result. They will switch off their phones and never answer to my emails.
    Until now I have done the following:
    1.Issued a notice of suspension due to non-payment. I stopped providing my services to target client until the issue is resolved.
    2.Sent 3 payment reminders via email.
    3.Sent one payment reminder via post.
    From your past experience could you please advise on the following questions:
    1.How realistic is it to recover these outstanding payments from that agency?
    2.What actions in order should I be taking to build a legal case?
    3.Are there any specialist lawyers who work on “no win no fee” basis and could pick up this case?
    4.What else should I do to build enough of a legal case to take this to the small claims court?

    #2
    Pass it to a debt collection agency to handle -Safe Collections posts on here at times...
    Last edited by eek; 19 October 2017, 09:35.
    merely at clientco for the entertainment

    Comment


      #3
      Speak to Safe Collections. They post on here but you can get contact details from their website.

      How can a business run if they switch off their phones. Doesn't make sense. I'd keep trying this. Try from a different number if you think they are filtering your calls out.

      Does it say anything in your contract about you not being paid if they don't. Could be a delay up the chain.

      Anyone else in the same position as you? Have you done a credit check on the agency to see if they are in financial trouble?
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        If you have IPSE+ membership you can claim on their business interruption cover if an agency fails to pay but it's unlikely to cover the full amount.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          I refuse to work with small agencies for this very reason, too many one man bands have started up with no capital and are living hand to mouth. OP did you do a credit check on the agency before you started?

          Comment


            #6
            Personally I would go and see them in person.

            Comment


              #7
              Originally posted by northernladuk View Post
              If you have IPSE+ membership you can claim on their business interruption cover if an agency fails to pay but it's unlikely to cover the full amount.
              There are two different policy levels - one for if the client or agency go bust and there's no payment (max payout £10k, subject to aggregate limit), and one for agency not meeting contractual terms (max payout £1k).

              It's worth ringing the office and asking about it though, just in case the former would pay out.
              Best Forum Advisor 2014
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              Click here to get 15% off your first year's IPSE membership

              Comment


                #8
                Originally posted by BrilloPad View Post
                Personally I would go and see them in person.
                With your rather large but silent mates?
                "You’re just a bad memory who doesn’t know when to go away" JR

                Comment


                  #9
                  Originally posted by SueEllen View Post
                  With your rather large but silent mates?
                  Doesn't have to involve violence, can find things out.

                  Back when I was contracting (*cough*), a good few years an agency went into liquidation costing a number of us a fair whack of money. One of the other contractors went to their offices - shut and dark. He saw the landlord who let him in, he'd been stiffed too. Said agency had left servers behind - the contractor powered them up, able to access the data there - which included bank account details for contractors limited companies...

                  Comment


                    #10
                    Originally posted by perplexed View Post
                    Doesn't have to involve violence, can find things out.
                    The large mates will ensure that other party behaves themselves.

                    Originally posted by perplexed View Post
                    Back when I was contracting (*cough*), a good few years an agency went into liquidation costing a number of us a fair whack of money. One of the other contractors went to their offices - shut and dark. He saw the landlord who let him in, he'd been stiffed too. Said agency had left servers behind - the contractor powered them up, able to access the data there - which included bank account details for contractors limited companies...
                    I wonder if the landlord's account details were there as well...
                    "You’re just a bad memory who doesn’t know when to go away" JR

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