Company in receivership. Job complete but I've not paid.

[TheMrX]

I guess this question would be more suitable to a legal site but I’m hoping that someone may have had the same experience or have a bit of trade knowledge and be able to advise.

I had some windows replaced on Day 1 and Day 2. On Day 2 the fitters realised they were missing some of the fittings. The fitters returned on Day 5 to finish the job. I said I would phone through the payment the next day as their office was closed.

On day 6 I paid the balance in full via my credit card. (The initial deposit had also been paid on my credit card.)

On day 14 (today) I received a call saying that the company went into receivership on day 3 and therefore, my payment was not taken. They (the administrators) asked if I would issue a cheque. I said that before I did that I wanted answers to the following questions.

1. Is my guarantee worthless now? - He said no, as someone was lining up to take over the business and it was most likely another arm of the original company, so all guarantees would be honoured.
2. Will I get my FENSA certificate? - He didn’t know what it was but said that the next company would take care of the all the paperwork.

So now my question to the forum members.

Should I just pay what I owe even though I am unsure about the guarantee and FENSA? Or, should I wait till I know my FENSA certificate is complete? Or should I reduce payment to take into the costs of getting a BCO sign-off? I wanted to pay by credit card because of the extra guarantees this offers and because I could spread the cost. But now I have to pay by cheque can I reduce payment to reflect the inconvenience?

The other question I’m asking myself is why did they come back to finish the work 2 days after they went into receivership? I’m glad the job is finished but to me it does not add up.

Anyway, any knowledgeable advice gratefully received.

 

[mattylad]

Hmm , not knowing the legalities I would be thinking that I'm expecting a certificate & would be wanting to reduce the payment if one is not going to appear, same if I had to incur extra costs by getting the BCO involved.

 

[JohnD]

1. Is my guarantee worthless now? - He said no, as someone was lining up to take over the business and it was most likely another arm of the original company, so all guarantees would be honoured.
2. Will I get my FENSA certificate? - He didn’t know what it was but said that the next company would take care of the all the paperwork.

I don't believe (1) or (2) for a moment.

 

[^woody^]

If the company folds, then you have no warranty.

The new company has to specifically take on the liabilities of the old company, but as these will be onerous, then it would make no commercial sense for them to do so.

May as well just get the company gear at a knock-down price and rise again "phoenix-like" to trade afresh - for a few years at least, and then do the whole malarky again

As you have part paid by credit card, then you are covered by the finance company - they should honour the warranty, and also reimburse the costs of a building control application and completion certificate if need be

Don't pay the company until you get a FENSA cert - literally get the certificate in your hand before paying the balance

You have no legitimate right to reduce the payment to anything other than the agreed price. You can certainly make an offer, but it does not have to be accepted

BTW, going into receivership does not mean that everything stops. The company will be run by receivers until such a time as a buyer is found, the finance is sorted, or the company folds.Thats why they came back to finish the work

 

[TheMrX]

Thanks for the comments.

They all say what I was thinking so I'll definitely wait untill I have the certificate before parting with my cash.

I thought the credit card payment may be my 'guarantee', so I'm pleased I was able to put down the deposit on the card in the first place. And fortunately it was over £100!

I'll try to remember to update this 'story' as it unfolds in case its of use to others in the future.

 

[big-all]

Thanks for the comments.

They all say what I was thinking so I'll definitely wait untill I have the certificate before parting with my cash.

I thought the credit card payment may be my 'guarantee', so I'm pleased I was able to put down the deposit on the card in the first place. And fortunately it was over £100!

I'll try to remember to update this 'story' as it unfolds in case its of use to others in the future.

i would check my self before feeling to secure about the credit card surely there responcibility will be the same as the percentage off the deposit and as youve had more than the say 10% deposits worth done how will you stand!!!

and i agree the gtees wont be worth owt

i would go for the citizens advice route before deciding on any payment as the terms of your contract have been changed

 

[TheMrX]

Cheers Big-all but the one thing I do know for sure is that the credit card company are jointly liable for a breach of contract with the retailer under Section 75 of the Consumer Credit Act 1974, provided more that £100 (but less that £30k) was paid on a credit card.

Whether this constitutes a breach of contract I dont know. But if I dont receive documentation that was promised, and is required by law, then I'll argue that it does.

I've got free legal advice with my house insurance so I'll try to give them a call later.

 

[Diyisfun]

I would get in touch with FENSA re my guarantee.
The job has been done, if you are satisfied, then you should pay, if you dont pay then the receiver can do whatever is required to get the money (thats there job).
As to credit card etc, I would contact the credit card company IN WRITTING.

 

[JohnD]

but surely the contract would have been "install xx windows, provide FENSA certificate and 5-year guarantee.

Why should he pay the full amount if he isn't getting the full service?

If it was an Electrical installation, you really NEED a certificate, and no-one but the Designer and Installer can sign to say they Designed and Installed it.

I believe for some building work there is a way of getting a post-install BCO regularisation certificate

Can you buy a guarantee and certificate if you pay FENSA or the BCO to inspect them?