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Jamie-Law
Jamie-Law, Solicitor
Category: Law
Satisfied Customers: 9039
Experience:  Solicitor
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I factor customer invoices and am in a pickle. I have banked

Customer Question

I factor customer invoices and am in a pickle. I have banked some of the cheques that were meant to go to the factoring company as had no choice due to HMRC threatening bailiffs. I intend to pay the money back but am not in the position at this time. Do you think the factoring company who are a large high street bank will Perdue me for fraud or will they agree for me to pay it all back in instalments? Please help. Thanks
Submitted: 7 months ago.
Category: Law
Expert:  Jamie-Law replied 7 months ago.

Hello my name is ***** ***** I will help you with your question today. I am reviewing it, please give me a moment.

Expert:  Jamie-Law replied 7 months ago.

Did you know that you should not have banked them? I assume you had already been paid by factoring Co?

Customer: replied 7 months ago.
I am aware. I have been with them for 15 years. I have had to bank cheques before and have them sent my own cheque to the factoring company (Lloyds). They have been aware of this in the past. I was hoping I could come to an arrangement with them once the realize and pay them back via s loan repayment. The bill will be around 25k. Just wondered what route you think they would take and whether my case is worth them prosecuting etc
Customer: replied 7 months ago.
just checking you got my reply
Expert:  Jamie-Law replied 7 months ago.

So cheques are not sent to them, but you? You send them their cut?

Customer: replied 7 months ago.
some customers send payments to me and I forward them to Lloyds Bank. some pay them directly. Ones sent to me I have banked. Do you think it is worth their while perusing a fraud claim. I will will then to offer a repayment. Was just hoping they would agree a repayment plan rather the court action etc.
Expert:  Jamie-Law replied 7 months ago.

It wouldn’t be fraud, it would just be breach of contract. Clearly they could terminate your facility

But you should come clean and arrange a repayment plan.

However it is not fraud.

Can I clarify anything for you about this today, please?

If not, I would appreciate a 5-star rating for my answer. If you need anything further I am available for a follow up at no extra cost.