Banking Issue or Contractual?

[SmallBusinessOwner2020]

Good Morning

Hopefully someone might be able to offer an opinion or advice.

I was contracted by a customer to construct a industrial building after acceptance of our terms and quote. I followed up with technical drawings as agreed in the quote and proceeded with the work. I advised it would be at least 5 weeks until delivery. In the meantime I was involved in a car accident and everything ground to a halt. I let my customers know the situation and kept them posted. Other works that were scheduled in befor his project got completed and delivered recently and this particular project lagged behind considerably as a result (Now 10 weeks). I kept the client informed but 2 weeks ago after he sent an email to ask when his building was ready and I didnt get back to him for a week (Yes poor I know and unforgiveable, but I have ongoing issues that prohibited me from doing this) he then proceeded to make a complaint to his bank that I had defrauded him. Which has resulted in my bank freezing all of my accounts.
I was contacted by my bank to provide documents regarding this transaction and sent all I had including communications to them and a statement from me. A week later they are still reviewing the documentation. I have been in touch with the customer and initially he wanted a definitive date for delivery before concluding if he wanted to proceed or ask for a refund. This morning he decided not to proceed with the order and agreed to retract the complaint when he has received a full refund. At the point of raising the complaint with his bank he hadn't even asked to cancel nor a refund! So basically am I right in thinking that he has/is using the bank as leverage to get his money back rather than go through the correct procedures and channels and does this in itself constitiute as fraud or blackmail perhaps?

Thanks in advance.

 

[Newchodge]

Good Morning

Hopefully someone might be able to offer an opinion or advice.

I was contracted by a customer to construct a industrial building after acceptance of our terms and quote. I followed up with technical drawings as agreed in the quote and proceeded with the work. I advised it would be at least 5 weeks until delivery. In the meantime I was involved in a car accident and everything ground to a halt. I let my customers know the situation and kept them posted. Other works that were scheduled in befor his project got completed and delivered recently and this particular project lagged behind considerably as a result (Now 10 weeks). I kept the client informed but 2 weeks ago after he sent an email to ask when his building was ready and I didnt get back to him for a week (Yes poor I know and unforgiveable, but I have ongoing issues that prohibited me from doing this) he then proceeded to make a complaint to his bank that I had defrauded him. Which has resulted in my bank freezing all of my accounts.
I was contacted by my bank to provide documents regarding this transaction and sent all I had including communications to them and a statement from me. A week later they are still reviewing the documentation. I have been in touch with the customer and initially he wanted a definitive date for delivery before concluding if he wanted to proceed or ask for a refund. This morning he decided not to proceed with the order and agreed to retract the complaint when he has received a full refund. At the point of raising the complaint with his bank he hadn't even asked to cancel nor a refund! So basically am I right in thinking that he has/is using the bank as leverage to get his money back rather than go through the correct procedures and channels and does this in itself constitiute as fraud or blackmail perhaps?

Thanks in advance.

No.

Give him his refund and get on with it. Or, if you cannot do that because of the frozen bank account, explain the issue and confirm in writing that he will receive a full refund of £ on the day your funds are available.

 

[SmallBusinessOwner2020]

Thank you for your input. I have agreed to a refund pending the account being unfrozen but the banks are dragging their feet.
I’m really concerned that a disgruntled customer can make such allegations (Fraud) without any evidence and there is little that protects businesses from this.

 

[Paul Norman]

I am surprised that the bank reacted in this way, unless it was Tide or Starling.

But you have done the right thing - agreed a refund. Now you just need to get on the phone to the bank and explain to them the situation. And explain to the customer that right now, the only person trying to stitch him up is the bank.

Of course, his allegation was frivolous. There was no instance of fraud here. Just poor service, which I think you have recognised.

Also, I hope you have recovered from the car accident.