Agency mistake means it refuses to give money

[Zoiderman]

A short explanation to a long story.

I have a contract with someone, contract is with company A. Due to accountancy error, advised to cease trading immediately with company A and form new company B. Advise agency company A cannot trade, new contract drawn up (post dated a week) and contract continues with Company B. Agency then, 3 weeks later, pay money due to company B, to company A. By this time, insolvency person involved in Company A who advises not to touch bank A/C for company A. Tell agency, their mistake led to payment to company A, due to company B, they still owe company B. Agency, effectively, tells me to swivel, and cancels contract.

Regardless of the nuances, my accountant (new accountant - another story altogether), tells me, contract firm with company B, despite being back dated, Agency still owes company B.

I will name and shame the agency, but only once court case ceases.

[SueEllen]

I will name and shame the agency, but only once court case ceases.

Why name and shame agency?

You screwed them around by not setting up your company properly so it's hardly surprising that the payment went astray.

You need to remember that accounts teams deal with lots of companies not just one, so changing things means there is more scope for human error.


This should be a warning to people to set up their company with advice from people who do it all the time.

[Zoiderman]

Why name and shame agency?

You screwed them around by not setting up your company properly so it's hardly surprising that the payment went astray.

You need to remember that accounts teams deal with lots of companies not just one, so changing things means there is more scope for human error.


This should be a warning to people to set up their company with advice from people who do it all the time.

But the error was theirs, and I am £2800 out of pocket because of what is their mistake. My company was set up oroperly, but I had to stop trading, immediately, due to an accounting error, which was also not my fault. I immediately contacted the agency, who immediately said they'd change the contract details. 3 weeks later they made the error; I fail to see how I screwed them around

[stek]

But the error was theirs, and I am £2800 out of pocket because of what is their mistake. My company was set up oroperly, but I had to stop trading, immediately, due to an accounting error, which was also not my fault. I immediately contacted the agency, who immediately said they'd change the contract details. 3 weeks later they made the error; I fail to see how I screwed them around

What was the 'accounting error' - I'm struggling to see how such an error could stop a company trading, unless it was supremely fraudulent. In which case you could well be in a emormous hole, since as the MD of the company you are responsible and indeed, sign off it's accounts.

[SueEllen]

But the error was theirs, and I am £2800 out of pocket because of what is their mistake. My company was set up oroperly, but I had to stop trading, immediately, due to an accounting error, which was also not my fault. I immediately contacted the agency, who immediately said they'd change the contract details. 3 weeks later they made the error; I fail to see how I screwed them around

If you have no emails or other written records that you informed the agency this, and you have no proof that you asked them to change the bank account details to make payments to then it will be your word against theirs. And they can easily concoct a story for a judge with associated paperwork. In addition if the agency is a limited company they may just ignore you if you threat them with court action and you even take them to court.

BTW if there are excess funds in the company bank account they can be claimed back from the closed company by contacting The Treasury Solicitor.

I suggest instead of fighting with the agency you talk to your insolvency person about how excess funds from the closed company can be claimed back. Then if needed agree with the agency on how this is done so company B does eventually get paid. You will have to do most of the leg work.

[Murder1]

Ignoring the reasons why you'd need to close Company A due to an accountancy issue did you invoice the agency from Company B and they paid Company A?

If so then it's their fault and they still haven't paid the invoice from Company B.

[blacjac]

What was the 'accounting error' - I'm struggling to see how such an error could stop a company trading, unless it was supremely fraudulent. In which case you could well be in a emormous hole, since as the MD of the company you are responsible and indeed, sign off it's accounts.

This type?
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Ignoring the reasons why you'd need to close Company A due to an accountancy issue did you invoice the agency from Company B and they paid Company A?

If so then it's their fault and they still haven't paid the invoice from Company B.

I'm with Murder1 on this one, it doesn't matter who owns which company, if MyCo sent an invoice and the customer sent the payment to someone else, its their own stupid fault and they still owe MyCo money

[SueEllen]

Ignoring the reasons why you'd need to close Company A due to an accountancy issue did you invoice the agency from Company B and they paid Company A?

If so then it's their fault and they still haven't paid the invoice from Company B.

You can take a company to court but it doesn't mean they will pay up even if a CCJ against them.

You can send bailiffs round but if they have no asserts i.e. are a small agency, then there is nothing for the bailiffs to take.

Far better to be agreeable and try and recover the funds in case the agency has to stop trading suddenly for any reason.

[perplexed]

Think the pertinent point would be which company those invoices were issued from.

If invoiced from Company A, then I'd find it difficult to understand why Company B would then be paid for a Company A invoice - should have kept a full paper trail recalling the invoice and invoiced from the correct company.

[Zoiderman]

Company A was told to stop trading as we were told we were effectively trading insolvent and were told to stop. The agency then resupplied a new contract to Company B. We signed a non invoice deal, so we didn't have to supply invoices. However, there is a paper trail from the agent showing dates and acknowledging the company change. I have several emails from the company admitting they had made the error.

I spoke to the FD of said company on the motorway at 85 and he got shirty as I had raised my voice, which was what I needed to do to make sure he heard me. He said tough tulip, as good as. Said if they hadn't have backdated the contract, I'd have lost the money anyway, so to shut up and deal with it.

As far as I am aware, I was honest with them from the get go, I kept them apprised of the issues at all times, have fully complied with all of their demands, but I was simply told TS, which is unacceptable in my view. I have acontract with them, had, which was cast iron. I am not wearing the £3k loss on their mistake as lets remember, it wasn't mine.