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Joshua, Lawyer
Category: Law
Satisfied Customers: 26070
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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We are a small family owed business. This time last year we

Customer Question

We are a small family owed business. This time last year we paid for a 3 year contract £1100 + Vat with a company that provides a tracking service for our company vans. Several months ago we were advised by email that the company had gone bust & had been bought out by another company.

This company has stated that they do not intend to honour our contract with the previous owner & that if we wish to continue to use the services we would need to pay a monthly subscription of £9.00 per vehicle. Despite being told in the email that the new owners of the company would call to discuss this has not been the case.

Today we have received an email stating that unless we confirm by 16th that we intend to keep their services & pay the monthly fee we shall have our account terminated. To date we have been given no terms or any form of services contract or agreement.

My questions are.

1. Do we have any legal recourse to prevent them from cutting our service.
2. How can we guarantee that our monthly subscription will not increase if we do agree to their new trading demands.

I have paste the email correspondence received from the company.

Many thanks XXXXX

Email: 1

Good Afternoon.

I am writing to you with regard to CEMA Tracking Solutions and the on going issues arising from the liquidation of Unitrak Ltd.

As you are aware, your previous supplier Unitrak Telematics Ltd, ceased trading due to liquidation from 2nd July 2013. CEMA Tracking Solutions have identified various causes for the failure of Unitrak, many of which you will have experienced. These include poor customer service, poor admin and irregular invoicing.

Any outstanding enquiries, issues or invoicing up to this date must be directed to the liquidators of Unitrak Telematics Ltd as below.

Nicholas Hutton

Case Administrator

P & A Partnership
XXXXX Sheffield, S1 1WF

Whilst we sympathise with Unitrak customers, CEMA Tracking is not responsible for these failings and we are doing our utmost to rectify the problems experienced by Unitrak customers.

However, many of the Unitrak customers had contracts in place that were being charged at a rate too low to be sustainable. Some contracts were operating at a loss with monthly charges that were less than the actual costs involved.

CEMA Tracking Solutions would like to make a very reasonable offer to the previous Unitrak customer database to allow the software, service, and support to continue without interruption. CEMA Tracking is part of the £50million CEMA Group of companies, we have outstanding service and we own the highly advanced CEMA Vehicle Management System. Some of our customers include Electricity Northwest, PPG Group, Brown Brothers Ltd, AirRadio, Affini, Armstrong Bell. Please feel free to ask for customer testimonials or contact details.

We have put together 3 options for you going forward.

Option 1:-

As units are already installed in your vehicles, CEMA Tracking will provide technical support and service as well as access to the CEMA - Unitrak software.

This incurs a monthly charge of £8.95, per vehicle, per month + VAT

Option 2:-

Your current tracking units will also be compatible with the CEMA Vehicle Management System within the next 8 weeks. At this stage, you will have a choice of which piece of software you would like to use.

The CEMA Vehicle Management software is more advanced, is easier to use, has many additional features and is extremely reliable compared to the CEMA Unitrak Software. An example of this would be the report generator allowing you to configure your own reports, selecting the exact information you would like in a report and giving it its own name. This varies to your current software that only has standard, set reports). The usual cost for this software starts at £12.00 per month after the purchase of a high specification tracker for £299.00.

However we are willing to offer this service at the same rate of £8.95, per vehicle, per month + VAT. (Your current tracker unit utilised)

Any tracker units that are faulty and require a replacement will be charged at £70.00 + VAT

If you have any questions or would like an online demonstration of this software, please contact Ross Wilson – ‘07713 046914’ or ‘[email protected]’. For a short demo video please visit and follow the link.

Option 3:-

We understand that some clients may wish to source tracking

Email 2: Dear Customer

You were recently emailed details of changes to your tracking account and advised that if we received no communication from you offering to pay the monthly charge of £8.95 per tracker your access to the service would be withdrawn. To date we have received no commitment from you to do so.

I have to inform you that if I do not receive any such commitment by the end of tomorrow (16th October), that service will be disabled.

If you do not wish this to happen please contact us as soon as possible.

Thank you
Submitted: 4 years ago.
Category: Law
Expert:  Joshua replied 4 years ago.

Joshua :

Do you know if the original company (let call them A) have been wound up and struck off companies house register? Alternatively has new company (company B) rescuedthe original company and now owns and operates company A please?

Joshua :

FYI I just have to step into a meeting for hopefully no more than half an hour. I look forward to hearing from you and with your permission shall revert to you on my return...

JACUSTOMER-509d0ort- :

Hi Joshua

JACUSTOMER-509d0ort- :

Please find information that I know of

JACUSTOMER-509d0ort- :

JACUSTOMER-509d0ort- :

this is a link stating that they are in liquidation.

JACUSTOMER-509d0ort- :

hello Joshua

Joshua :

My apologies for the delay in reverting to you - just reviewing...

Joshua :

The company in question is as you say being liquidated. This means that all of its obligations subject as follows cannot be enforced however you can make a claim for any monies owed under the contract you had with the company with the liquidators.

Joshua :

The liquidators are as follows:

Practitioner name: RUSSELL, JOHN
Practitioner address: THE P & A PARTNERSHIP 93QUEEN STREET
S1 1WF
Practitioner name: RUSLING, GARETH DAVID
Practitioner address: THE P & A PARTNERSHIP 93QUEEN STREET
S1 1WF
Joshua :

There is a vaceat to the above. If company B has taken an assignment of any of the contracts from company A then company B is bound by the terms of the contract to provide service. You may wish to confirm with company B whether any of the contracts from company A were assigned to it before or during company A being liquidated.

Joshua :

Is there anything above I can clarify for you?

Joshua :

If they did not take assignment unfortunately the position is as above however, what follows from the above is that they cannot enforce the contract against you either - i.e. ask you to pay under the original contract monies to them.