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LondonlawyerJ
LondonlawyerJ, Advocate
Category: Law
Satisfied Customers: 814
Experience:  Solicitor with over 15 years experience.
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Hi, i am a small company who recently gave 13k to another company

Resolved Question:

Hi, i am a small company who recently gave 13k to another company to purchase a van, but they werent able to get me the van as they say their supplier went out of business, even though they have never provided any proof of this. They have been paying me very small amounts back over the last 5 mths but still owe me 7k.
This in turn has left me as a small business in a terrible position, and i ve had to sell a couple of vans of mine that customers had paid me a 2k deposit for in order to meet my trade account debts and the vat bill etc etc. I m now worried how that leaves me legaly as i cant pay mycustomers back in full at this stage , but would have to do it over time due to this company not refunding me my money. Is it worth me trying to recover my money from them through court?, or is that just futile as they are paying something back?
Your advice would be very helpful.
Regards. Si.
Submitted: 2 years ago.
Category: Law
Expert:  LondonlawyerJ replied 2 years ago.
LondonlawyerJ :

Hello I am a solicitor with 20 years experience. I will try to help you with this.

LondonlawyerJ :

It may well be worth threatening and commencing legal proceedings to accelerate repayment of the debt. You should send them a letter stating the history of the sale that went wrong. You should point out that they owe you the amount they owe directly and you should also point out all the consequential costs you have incurred. You should demand repayment of everything in full within a set period of time , between 2-4 weeks is normal in letters of this sort. You should make it clear that if they do not pay within that time (or come up with an acceptable agreement to pay) you will commence legal proceedings against them. If the total is less than or equal to £10,000 then the small claims court is the place for you. If it is more then you will need to issue in the fast track of the county court. If over £10.000 then you might well want to use a solicitor as if you are successful they will recover their costs from the other side. This can increase the pressure on the people who are keeping you out of your money.

LondonlawyerJ :

You should follow this link to find a solicitor to help http://solicitors.lawsociety.org.uk/ and this link for information on how to bring a small claim. http://www.adviceguide.org.uk/wales/law_w/law_legal_system_e/law_taking_legal_action_e/small_claims.htm

Customer:

Hi, thankyou for your reply. What would you suggest that I do with regards ***** ***** customers in the meantime as I want to repay them , but cant in full duet to other bills that I ve paid , and am worried that one of them said that this is fraud.

Customer:

Hi thankyou for your reply. What would you suggest that I do with regards ***** ***** customers in the meantime as I want to repay them, but cant in full due to other bills that ive paid, and am worried that one of them said that this is fraud.

LondonlawyerJ :

I don't see how you have committed a fraud based in what you have told me. How to handle your customers isn't really a legal issue and I am sure you know better than I how to try and keep them onside and protect the goodwill fo your business.

Customer:

Is that the case even though I ve taken their money in good faith , but cant finish the job?

LondonlawyerJ :

You would have needed to have a dishonest intent at the time you took their money for there to be a fraud.

Customer:

ok thankyou. Regards. Si.

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