Letting Agents not paying their invoices.

[CGF1954]

Can someone please advise me on this problem please?

My husband is a sole trader heating engineer and every now and then gets jobs from local estate agents. He got a call in February from a letting agent we have never heard of, based in Chatham, Kent (we live in Essex) who stated they had previously used a local gas engineer who had now retired and would he be interested in doing work for them as and when needed. Anyway, he did a couple of jobs for them end of February and sent invoices (totalling £250). At the bottom of his invoices (for estate agents etc) it does state "Payment to be made within 30 days of receipt".

Well lo and behold, after numerous telephone calls to this agency - and on two occasions a promise of a cheque being on its way - we have received nothing.

How and where do we stand on getting our money back? Obviously there is no way he will do anything more for this agency and I am not the sort of 'wife' that will let this go and put it down to bad experience !

Your thoughts and input would be gratefully appreciated.

 

[JohnD]

It sounds like they may already have ripped off all the local traders in Chatham, Kent if they are having to find new mugs across the river

In which case probably the small claims court is your next stop.

Another enjoyable ruse is to wait until they have another urgent call-out, and go to their office demanding payment of the previous jobs before you go to the new one. When (if) you get it, say all future work is cash in advance. It does no harm to be in their office loudly demanding overdue payment while they have clients in there. Just keep repeating loudly "I've come for payment of my overdue account like you promised a month ago". If they try to make you quiet, say it again, a bit louder. Businesses hate having their clients hear this

If they are rogues, don't treat a cheque as payment until it has cleared through the bank.

 

[CGF1954]

Thanks for that JohnD.

Well I think our best course of action is firstly a letter stating that if payment in full is not received within seven days that we have no choice but to seek legal action. If we don't hear anything after that, the small claims court it will be.

...and they talk about rogue traders !!

 

[WoodYouLike]

...and they talk about rogue traders !!

There are more rogue customers out there than rogue traders

 

[WoodYouLike]

Oh, and perhaps before you go to court, try this company- we only hear good stories about them.

 

[^woody^]

Don't mess about with none payers

Send a recorded delivery letter saying that if payment is not received within five days (and state a date) then you will make a claim in the County Court for full payment, plus interest, plus costs.

Then if you hear nothing on the day after the due date, go to www.moneyclaim.gov.uk and start the claim.

If you receive the payment after this day call them and tell them about the court claim issue cost and interest, don't cash the cheque until they send you this. Only once you have the full amount, and it has cleared in the bank should you stop the claim

 

[CGF1954]

Thanks everyone. Am preparing the letter as we speak.

Honestly what is it with Letting Agents? There was another local one to us that he was doing work on and off for and every month I used to have to chase them for payment even though they originally told him that payments were made the middle of every month. Why then did it need me to ring them up at the END of every month chasing for payment only to then receive a cheque the next day. Mind you, at least they paid !!

That's it now though, no more poxy letting agents - I just feel sorry for the next mug that gets onto their books.

 

[mdj1]

You can charge interest from the day the invoice is overdue. 8% above the BOE base rate as of the 31st of Dec or 30 June which ever the invoice comes after. You can also charge a statutory fee either £50 or £100 depending on the amount.

You don't have to tell them about the interest you can just invoice for it, but I find it the best way to get people to pay. Heres an example of a letter i send just last week by recorded delivery on Thursday (delivered friday) i got the cheque on Saturday.

With reference to invoice numbers 2136 and 2137.

Failure to make full payment of the above invoices within seven days of postmark of this letter will result in further action and the issue of a surcharge invoice for late payment fees as stated in the Late Payment of Commercial Debts [Interest] Act 1998.

Interest will be calculated at Bank of England base rate as of 31st December 2007 (5.5%) plus 8% = 13.5%

Interest charged at £6.97 per day from 16th March 2008. (date invoice due)

Cost of interest to date £376.38

Plus £100 statutory compensation

Total cost to date £476.38


http://www.opsi.gov.uk/ACTS/acts1998/ukpga_19980020_en_1

The invoice was for just under £19,000 but it often gees people up in paying. People think they are clever holding on to payment, they think they are saving money, getting interest. Hit them with something like this and all that interest will be thrown away!

The irony of it is they called me in today to discuss a load more work! When you provide a good service at a good price people will come back regardless.

So don't think that writing snotty letters like this that the customer wont deal with you anymore.

 

[wms]

MDJ1 why would you want to carry on doing business for a customer that
you have to go to all that trouble to get paid?

 

[mdj1]

I didn't say I was going to do anymore work for them, I said they contacted me. I probably will do the work, well quote for it

And to be honest I always get paid in the end. This is a large Golf and Hotel Complex, They host televised golf tournaments, it's not like they haven't got the money!

I'm not going to turn down xx thousands of pounds of work becuase sending a letter is "grief"

 

[wms]

past experience tells me that once you start on this path eventually the scally wags will not pay and its costs, been there got the t shirt read the book. the larger the company the more they try to dictate. well fortunately we have grown, so now we do pick and choose and tell them where to get off.

 

[CGF1954]

Yeah well, I have learnt my lesson NEVER to do any work for an estate agent again. We went through the Money Claim Online route - gave them two weeks to pay - nothing. Have now moved for a "judgment" so will wait and see but somehow I don't see a payment coming anytime soon (although I don't really know how these things work to be honest).

 

[mdj1]

cgf you can apply for a winding up order if they fail to pay. This would be your best route. In business, if a business fails to pay, then the powers that be see it as that business cannot trade. SIMPLE!

PS, im also in essex!

 

[Dodgydave2]

PUT THEM ON HERE

Roguecustomer.com

My brother was owed money from a managing agents in Southend Essex
He parked his van across their entrance all day did'nt get his money but he got in the local paper.