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Nicola-mod
Nicola-mod, Moderator
Category: Law
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Experience:  Moderator
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We have been using a Photocopier company to help with the sales

Customer Question

We have been using a Photocopier company to help with the sales and support of new machines into our clients. This company has mis-sold to a number of our clients, two of which are now under the threat of legal action to repay service agreement costs to their previous supplier which should have been settled by our Photocopier company when they took over the machines and contract. That is how they sold in their product but they are now saying that they will not settle this cases despite having settled 4 others where they did exactly the same. We have escalated this situation to the owner of the company who is still refuting any liability. Can you help point me in the right direction of what actions we need to take next to sort this out for our two clients. Many thanks
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts : Hello my name is Alex and I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return. There is no need to wait here, you will get an email when I reply.
JACUSTOMER-ge1t44e0- :

Many thanks and I look forward to hearing from you.

Alex Watts : When was this please?
JACUSTOMER-ge1t44e0- :

This has been going on since the beginning of the year and in April, one of their sales guys actually told me to ask one of our clients to invoice them for the outstanding amount as he had arranged payment for it. Our client followed his instructions but upon chasing up the cheque, I was told there was no second signatory in and that they would settle the account direct with the previous company. Unfortunately this never happened and as most of our dealings were on the phone I have no written account of this from them. To complicate things further, the person I was dealing has since moved into another role and is now declining to be involved in this situation. The only thing I have in writing is my email to our client, asking them to raise an invoice and send it to our photocopier company who were arranging the payments. A similar situation has occurred with our other client as well in that the original person dealing with them has actually now left this company.

JACUSTOMER-ge1t44e0- :

Hi Alex,

JACUSTOMER-ge1t44e0- :

This is now urgent as our client has been chasing us again for what our next steps will be - do you have any advice you can offer on what we need to do now?

JACUSTOMER-ge1t44e0- :

Many thanks

Alex Watts :

In short they are asked to end their agreements early and the new company will settle any outstanding finance, is that right?

JACUSTOMER-ge1t44e0- :

Yes thats right and that is how the new photocopier company sold in their product and services based on the fact that they would pay any early settlement fees for the rental and service agreement for the machines. Unfortunately they have not paid the service agreement early settlement fees at all for these two clients. We had another 4 clients where they had done the same and they paid those ones off but are refusing to do so with these two remaining clients which were clearly mis sold to.

Alex Watts : Did they purchase direct or through you please? Do they have evidence in writing that it was agreed the company would settle with others please?
JACUSTOMER-ge1t44e0- :

They purchased through the photocopier company and I have email evidence asking for one of the two clients to email an invoice for the settlement of the service agreement along with the name of the person that they needed to send it to so that payment could be made - I don't have anything in writing from the photocopier company as the majority of our dealings were on the phone. This is why I am struggling to sort this with them and although I have sent all the email info to them they are not budging in terms of their decision not to pay out. I do not know what to do next as our business cannot afford to pay the settlement costs but clearly our clients are out of pocket to the tune of approx £3000 each.

JACUSTOMER-ge1t44e0- :

If it is easier for you to call me regarding this I am happy to give you my phone number - just let me know.

JACUSTOMER-ge1t44e0- :

Is there any chance that you can give me any advice on how to proceed today as I need to feedback to my manager what I think our next steps should be and where we stand from a legal point of view. Do you think we can pursue the photocopier company for the settlement of the outstanding service agreements and what would be our best course of action to achieve this?

Alex Watts :

Ok - well you have no contract with the Company I assume and therefore it is not an action you can bring.

Alex Watts :

The Companies concerned have to take action against the supplier for breach of contract based on misrepresentation themselves.

Alex Watts :

As a third party you have no contract (I assume ) with the Company and you can not bring a claim.

Alex Watts :

Only they can claim for any losses incurred as a result of this.

Alex Watts :

Sadly it is against site rules to call you as I would get into trouble and everything must be done online.

Alex Watts :

But if there is a claim for misrepresentation this can be dealt with through the County Court.

Alex Watts :

Any claim for £10,000 or below would be a small claim and that means there is no legal representation needed.

Alex Watts :

Claims can be started online at: www.moneyclaim.gov.uk

Alex Watts :

But unless there was a contract between you and the Company you can not bring a claim.

Alex Watts :

But they can claim breach of contract based on misrepresentation.

Alex Watts :

Can I assist you or clarify anything for you about this today please?

Expert:  Nicola-mod replied 3 years ago.
Hello,

Just a quick reminder, there is an unrated answer waiting for you here from the Professional.

If the Expert was helpful, rating their answer as satisfactory transfers your deposit to them – this is how the Expert is compensated.

To rate your answer, you can go to your question page, and click one of the five faces below the Expert's answer. Please be sure you are logged in with your username and password or you will not be able to view or rate your answer.

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Thank you,
Nicola

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