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Jamie-Law, Solicitor
Category: Law
Satisfied Customers: 17315
Experience:  Solicitor
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I need some help with a legal letter I have received about

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I need some help with a legal letter I have received about some very old debts
JA: Where are you? It matters because laws vary by location.
Customer: Essex
JA: What steps have you taken so far?
Customer: None
JA: Anything else you want the Lawyer to know before I connect you?
Customer: We are a small business. The legal letter has come from a company owned by an ex-director of this company

Hello my name is ***** ***** I will help you. I am just reviewing your question. This is an email service so there may be delays when responding.

Can you please explain your situation a little more?

Customer: replied 7 months ago.
Hi Jamie. Ok, so we are a small Limited company, incorporated in 2011. There were two directors, KP and NP. NP has another company that provides payroll services, which is still active today. NP is no longer a director of the company I am writing in relation to. We have received a legal letter from NP, stating that invoices raised between March and December 2016 for payroll services have not been paid. I am not sure of the best course of action. The debt is significant - £40k plus £10k interest!
Customer: replied 7 months ago.
Also, the debt has not been chased in the past year (the time I have been working with the company). I do believe the debt is owed but the company is not in a position to pay it due to the financial situation that NP left the company in.

Do you accept between March and Dec 16 they have not been paid?

Customer: replied 7 months ago.
I am quite confident that the amounts are unpaid

Is there a contract? Do they say how they get to £10k interest?

Customer: replied 7 months ago.
There is no contract. The interest has been calculated at £7.85 per day. Plus late payment compensation in the sum of £1,020 and legal costs in the sum of £145.

Is this the first time they have chased it?

Customer: replied 7 months ago.
I believe so yes
Customer: replied 7 months ago.
It is certainly the first time in a year that it has been chased

Has it actually been invoiced before?

Customer: replied 7 months ago.
I have no copies of the invoices

Was it invoiced though ?

Customer: replied 7 months ago.
I can't actually say for sure if it was invoiced or not. I think it is likely that it was.

ok. As you are a business there will be some interest payable uner the Late Payment of Commercial Debts (Interest) Act 1998 of 8% above base.

They are also entitled to fixed compensation per invoice. This is:

Up to £999.99 - £40

£1,000 to £9,999.99 - £70

£10,000 or more- £100

No legal costs or higher lump sum compensation payments.

They do have 6 years to make a claim.

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

If not, I would appreciate a 5-star rating for my answer, by clicking the button at the top of the screen. I am not paid for my time unless you rate. If you need anything further I am available for a follow up at no extra cost.

Customer: replied 7 months ago.
Ok, thanks for confirming that. However, I was hoping for a bit of advice on how to respond to the letter as, like I have said, the company isn't in a position to pay the debt.

You just say that. If the Company has no or little assets you say so.

As such if they would the company up, which they are entitled to do so, they wouldnt get anything

Thats your best tactic

Does that clarify?

Customer: replied 7 months ago.
Ok, thanks

Can I assist with anything else tonight? I am sorry its not better news.......

Customer: replied 7 months ago.
No no, that's fine. It is what it is! Thanks for all your help

All the best. If I could invite you to rate me 5 stars before you go today by clicking the button at the top of the screen, so the site credits me for the time spent. I am only paid when you rate. if you need further help please click reply. Thanks in advance.

Jamie-Law and 2 other Law Specialists are ready to help you
Customer: replied 7 months ago.
I'll do that now, thanks