credit note on a pro forma account??? surely not!

rollercoaster

Free Member
Feb 2, 2010
2
0
Hi there people,

I have an issue with a long standing supplier, who for reasons only known to themselves appear to want to fight everything we ask of them, at every step of the way!

I should qualify it's a fairly straightforward relationship, we order a part to a standard pattern of ours which they helped us develop, they make it and deliver it. Up until last year when we had our credit account withdrawn (you're too small to get insured, you'll be on pro forma from now on) we have always paid bang on time, or early.

In a nutshell, we're a small but loyal and good paying customer.

So a batch of these things they make comes into me, and we can only use 90% of them, as the part is made way outside of spec - there's some shapes involved which simply have to be made correctly. Not usually a problem.

I complained about these, and as I ordered the next batch, I sent back several examples of the bad ones as a "do not make them like this" example.

The new ones (pro forma, paid for, about a years supply now in stock) are all perfect.

I send back all of the duff ones and eventually they get around to looking at them and agree they are bad and should never have been sent out from their plant.

I am asked to quantify the duff count in total, which yields the news that a credit note will be issued...I make the observation that as I am now on pro-forma and have paid for the non-compliant goods, that the refund should be by way of a cheque.

I have received 2 blunt rebuttals. A credit note is all I'm offered.

I'm miffed at this, and am actually considering suing them! I'd like to make the point that belligerence isn't always the best way to run a business.

question is - As I have paid in full for these goods, I do have the rights to demand a refund and not a credit note don't I?

Is there any legislation I should have a nose at before I start this off?

Appreciated you sticking with the story!

regards

Paul B
 

elaine@cheapaccounting

Business Member
  • Business Listing
    Nov 4, 2005
    13,090
    2,896
    Legal guys can deal with the CN / refund issue but with a year of these items in stock that gives you enough time to kick these guys into touch and get a supplier who you can work with and wants your business
     
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    rollercoaster

    Free Member
    Feb 2, 2010
    2
    0
    Why not just deduct the amount of the credit note from your next proforma invoice?
    and pay the balance?

    I have no particular plans to ever use them again if at all possible.

    I have had an alternative source of supply up my sleeve for a little while, and in spite of the fact that they are a little more expensive I am now thoroughly compelled to use them.

    I have tried to live with the incumbents poor relationship management for ages - I know business is tough for everyone out there, but this is a step too far; beyond the actual issue, it's the way in which the messages are delivered - just appalling! - like my business is some kind of annoying hinderence to them!

    Still looking for firm advice that I can justly demand a credit note in this situation!
     
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    Tej

    Free Member
    Oct 26, 2008
    3,340
    1,109
    Kent
    I have no particular plans to ever use them again if at all possible.

    I have had an alternative source of supply up my sleeve for a little while, and in spite of the fact that they are a little more expensive I am now thoroughly compelled to use them.

    I have tried to live with the incumbents poor relationship management for ages - I know business is tough for everyone out there, but this is a step too far; beyond the actual issue, it's the way in which the messages are delivered - just appalling! - like my business is some kind of annoying hinderence to them!

    Still looking for firm advice that I can justly demand a credit note in this situation!

    From a purely business point of view.. to save unneccessary grief.. I would buy just slightly more than the value of the credit note. Pay the balance..
    You still get the goods that you can use.

    Never shut the door... how good will your alternative supplier is.. depends.


    Else you will spend a lot of time getting the refund ...

    Is it worth it?
     
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    It sounds as though you have grounds to pursue a payment. If the manufacturer has agreed the goods are defective it cannot force you to accept a credit note. You should look at the Sale of Goods Act, the relevant sections from what you have mentioned would be s.14 - implied terms as to quality, fitness for purpose etc and possibly section 15 - sale by sample. Send me a pm if you need any further help.
     
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    B

    BusinessIdeas

    Like the other person said 'is it worth it?' I would put in one last order and after that would explain to them nicely, and without rancour, why you would have trouble dealing with them again. It doesn't pay to close doors and you catch more flies with honey than you do with vinegar - my tuppence worth :)
     
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