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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 73923
Experience:  Qualified Solicitor
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I am owed money from one company in a group and owe another

Customer Question

JA: Hi. How can I help?
Customer: i am owed money from one company in a group and owe another company in the group, I have paid the difference to the company that I owe, they are saying I cannot offset the amount I am owed against my debt is this correct
JA: Where are you? It matters because laws vary by location.
Customer: England
JA: What steps have you taken so far?
Customer: I am owed £3500, but owe £4100, have paid £600
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: no
Submitted: 15 days ago.
Category: Law
Expert:  Ben Jones replied 15 days ago.

Hello, I’m Ben. It’s my pleasure to assist you today. I may also ask for some preliminary information to help me determine the legal position.

Expert:  Ben Jones replied 15 days ago.

Please explain this in some more detail. How has this situation arisen?

Customer: replied 15 days ago.
I rented a property which ceased in March 2021. We had a water unit which I specifically requested be switched off, this was acknowleged by the leeting agency. They asked the tenant to switch it off, but did not check that it had been done. An immersion heater was switched on by mistake causing the boiler to leak. I have had to replace the the boiler and redecorate at a cost of £4100. The property has now been sold by an estate agent in the same group of companies as the letting agent, cost of sale was £4100. I have paid the £600 difference and stated I am not paying the balance until the problem has been sorted. The Estate Agent is saying that although the two companies are in the same group I have to pay their bill in full, irrespective of the problem with the other group company. Is this correct
Expert:  Ben Jones replied 15 days ago.

OK I understand and thank you for providing this information. Please do not worry and leave it with me for now; I will get back to you with my answer as soon as I can which will be at some point today. The system will notify you when this happens. Please do not reply in the meantime as this may unnecessarily delay my response. Many thanks.

Expert:  Ben Jones replied 15 days ago.

Many thanks for your patience, I am pleased to be able to continue assisting with your query now. You cannot legally offset the two amounts against each other because in the end, the two companies are separate legal entities. The fact they are part of the same group does not make them legally connected in this way and contractually you are still dealing with two separate legal entities, each with its own rights and responsibilities towards you. If you have any issue with either company you need to pursue them directly. That means paying the invoice to the company which you have no issue with and potentially having to pursue the other for any issues you have experienced with them.

Expert:  Ben Jones replied 15 days ago.

Hopefully, I have answered your query in a way that is simple and easy to understand. If anything remains unclear, I will be more than happy to clarify it for you. In the meantime, thank you once again for using our services.