Deposit Dispute

[Ionstorm]

Hi there all, I have a question so I'll long story short.

We started a project with a client and took a non refundable deposit as per our T&Cs.

Communications broke down when I was in hospital and never got a reply to our email asking the client if they wanted me to continue working on their site.

Customer further ignored an invoice for anothor service which we renewed for them.

Later out the blue we get a paypal dispute for a refund which is instantly closed and ruled in our favour as its older than 6months old.

Customer then invoices us for the deposit amount from their company.

We email them with a "what the hell and were not paying that".

In less than 28 days since posting that invoice we receive a letter from a debt collection agency.

We tell the debt collection agency its not a legitimate debt/invoice, and we don't recognise the debt.

Collection company spamming us with all sorts of stuff trying to bully us in to payment.

Any ideas? I didn't think it was legally allowed just to open an invoice like that let alone send debt collectors after less than a month!

Were a small company and done a lot of charity and not for profit work, we can't afford to pay £100h per hour for a solicitor just to get told we have to pay or not, so hoping someone here can guide us on a path, or recommend a solicitor that'll give a hit of free advice.

 

[obscure]

You are correct. They can not simply raise an invoice for an amount of money. If they feel they have a case re the deposit they can opt to take legal action but until that matter is settled (or you agree to settle) there is no legal debt they can invoice for or chase for collection.

As for the debt collection agency - I am fairly sure that their behaviour would constitute harassment and that continuing to pursue you once informed that there is no legal debt is illegal.

 

[Ionstorm]

Thanks they asked for proof that I'd done anything work wise, I listed all I'd done even though I didnt have to thinking they'd drop it.

However they responded that the client claims its all absurd and untrue. I've already asked them if they were a legitimate collections company when they're trying to collect on a sub 30 day proposed debt.

It's like headbutting a brick wall with this company. I think it might be worth contacting a solicitor and getting them to send a letter. Just don't see why I should have to spend like £150-£250 just to tell someone who should know better to back off.

 

[DavidWH]

Block their emails, and their phone numbers, and invite them to issue court proceedings. Sounds like you've got a strong case, and will cost them money to pursue it further.

 

[Newchodge]

We started a project with a client and took a non refundable deposit as per our T&Cs.

Communications broke down when I was in hospital

Does that mean that you did not fulfill your obligations under the contract?

 

[Ionstorm]

Does that mean that you did not fulfill your obligations under the contract?

Nope I informed them of the delay and gave them the option to cancel the project. I had no reply at all to that email but had an email a week or so later on asking me to do some maintenance on their existing site which was done. They actually got me to a tonne of work on their current site in between creating their new site, which never actually got finished due to ignoring my emails when I said I'd have to start charging extra for more work on the existing site, I then sent them multiple questions with no reply.

Presumed they were busy and lost track of time, until the dispute opened.

 

[WaveJumper]

This may sound a little controversial:

I certainly not clear on all the facts, however communication seems to be a big issues here (yes as already stated they can't raise an invoice just out of thin air) but do you not think that perhaps picking up the phone and actually speaking to your client would be a good idea.

Ok you sent an email and heard nothing would it not have been a good idea to have followed this up with a call (or even arrange a meeting) and make sure your client was happy about the current situation, works being done etc. I am just guessing but they may be pretty aggrieved over the service so far.

Personally I think its too easy to hide behind emails ....... pick up the phone and talk to your client and get it sorted out before it starts costing you a lot more than just money.

 

[Ionstorm]

Personally I think its too easy to hide behind emails ....... pick up the phone and talk to your client and get it sorted out before it starts costing you a lot more than just money.

Tried that, he's nearly always engaged or out the office. We don't quote for 7 hour round trip drives and overnight stays in our pricing for a face to face meeting during a project unfortunately. He wasnt one for big budgets either.

They were an existing client, took us 2 months to get website content from them in the past for a previous site. Usually have to badger them to pay any invoice to, it's nearly always a week or two overdue.

I've sent them three emails since I've had the letter form the debt collection agency, and when I've tried calling ive been hung up on.

It wasn't until I went to get their number to call them off of their website I realised they've had it done elsewhere now also.

I'm not saying it couldn't have been handled better or more effective, but a small business that's busy doesn't really have time to sit chasing people endlessly or hog the phone on the hopes someone replies, I was also in and out of hospital at the time so chasing someone who should really be chasing me wasn't a priority at the time unfortunately.