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Finance company break confidentiality

Discussion in 'General Business Forum' started by Jamiereid92, Mar 8, 2018.

  1. Jamiereid92

    Jamiereid92 UKBF Newcomer Free Member

    7 0
    Hello,

    I am looking for some help. I have been trying to purchase a hair salon and before any information I had to sign a confidentiality agreement.

    I was in touch with a finance company and in the end decided I didn't like their offer so stopped contacting them. They were fully aware I was trying to borrow money to purchase a business and it was to be handled confidentially.

    They have given me lots of calls which I have ignored, but then they sent a letter adressed to me, and my would be salon name, to the salons address! They knew that this was a confidential sale, they have my email address and home address, I don't understand why they did that.

    I am going to call to complain, but I want to know what to say and what I am entitled to as this could have a negative effect on me getting this salon.

    Thanks for reading and any help.
     
    Posted: Mar 8, 2018 By: Jamiereid92 Member since: Mar 8, 2018
    #1
  2. Karimbo

    Karimbo UKBF Ace Free Member

    1,617 158
    I don't know what you can do legally. But contact the manager of the finance company and let them know that their salesperson has broken your confidentiality and will not be using their finance services.

    This seems like a very deliberate move, only an imbecile would post a proposal to the salon knowing full well you don't own it nor do you have any access to the mail there.
     
    Posted: Mar 8, 2018 By: Karimbo Member since: Nov 5, 2011
    #2
  3. Jamiereid92

    Jamiereid92 UKBF Newcomer Free Member

    7 0
    That's what I thought I feel like it was malicious rather than stupidity.
     
    Posted: Mar 8, 2018 By: Jamiereid92 Member since: Mar 8, 2018
    #3
  4. Mark T Jones

    Mark T Jones UKBF Enthusiast Free Member

    1,798 475
    What are you hoping to achieve?

    If you inform the ICO they will probably get their knuckles rapped (but you won’t get to know)

    If you go up the line, the person responsible will get their Nuckles rapped and you might, possibly get some compo

    If you speak to the individual directly you will get an apology

    What outcome are you after?
     
    Posted: Mar 8, 2018 By: Mark T Jones Member since: Nov 4, 2015
    #4
  5. Jamiereid92

    Jamiereid92 UKBF Newcomer Free Member

    7 0
    I would like compensation, an apology is worth nothing, and isn't going to help me buy a salon!

    Thanks for your responses
     
    Posted: Mar 8, 2018 By: Jamiereid92 Member since: Mar 8, 2018
    #5
  6. Mark T Jones

    Mark T Jones UKBF Enthusiast Free Member

    1,798 475
    Then you need to start by identifying and quantifying financial loss/inconvenience
     
    Posted: Mar 8, 2018 By: Mark T Jones Member since: Nov 4, 2015
    #6
  7. Jamiereid92

    Jamiereid92 UKBF Newcomer Free Member

    7 0
    I was thinking I would have yo do that but had no idea how to go about it. Financially what am I losing? Nothing it's a lost oppurtunity.

    Potentially thousands of pounds from profit, but potentially a loss.

    So I feel they have done wrong and damaged my chances of getting this salon, but I don't know how to work that out to a figure of money.
     
    Posted: Mar 8, 2018 By: Jamiereid92 Member since: Mar 8, 2018
    #7
  8. Jamiereid92

    Jamiereid92 UKBF Newcomer Free Member

    7 0
    Could it be my predicted profit from the time in which I could have had this salon to the time it' going to take me to negotiate a new deal with a new salon owner?
     
    Posted: Mar 8, 2018 By: Jamiereid92 Member since: Mar 8, 2018
    #8
  9. Mr D

    Mr D UKBF Legend Free Member

    7,429 777
    So what is your actual loss?

    How is a finance company that you were ignoring going to impact your ability to buy the salon?
     
    Posted: Mar 8, 2018 By: Mr D Member since: Feb 12, 2017
    #9
  10. Jamiereid92

    Jamiereid92 UKBF Newcomer Free Member

    7 0
    Because they have broken the confidentiality agreement I signed with the current owner. The staff have seen and thats who he didn't want to find out . If they get worried the salon is selling they may start to look for employment elsewhere and bring the value of the business down.
     
    Posted: Mar 8, 2018 By: Jamiereid92 Member since: Mar 8, 2018
    #10
  11. Mr D

    Mr D UKBF Legend Free Member

    7,429 777
    So the staff opened a letter addressed to someone else?

    Will staff not find out the day you tell them?
     
    Posted: Mar 8, 2018 By: Mr D Member since: Feb 12, 2017
    #11
  12. Jamiereid92

    Jamiereid92 UKBF Newcomer Free Member

    7 0
    No they haven' opened a letter, it's a letter adressed to a new person with a new salon name.

    Yes they will find out then but I will already be there and have taken it over. If they find out before there is going to be a lot of fear of the unknown if they find out before hand
     
    Posted: Mar 8, 2018 By: Jamiereid92 Member since: Mar 8, 2018
    #12
  13. Toby Willows

    Toby Willows UKBF Regular Free Member

    760 164
    So the current salon owner may have a claim, especially if staff leave. How does it impact you buying the salon? If anything it may help you as the owner knows you have finance in place.
     
    Posted: Mar 8, 2018 By: Toby Willows Member since: Jun 20, 2016
    #13
  14. Gordon - Commercial Finance

    Gordon - Commercial Finance UKBF Enthusiast Free Member

    516 113
    Can't imagine staff would leave over that...would just be put down to a postal error or something.
     
    Posted: Mar 8, 2018 By: Gordon - Commercial Finance Member since: Jun 26, 2017
    #14
  15. NickGrogan

    NickGrogan UKBF Ace Full Member

    1,229 252
    If the staff are leaving over a letter, you probably don't want to buy the business anyway.

    I'd be thanking them.
     
    Posted: Mar 8, 2018 By: NickGrogan Member since: Nov 15, 2012
    #15
  16. fisicx

    fisicx It's Major Clanger! Staff Member

    28,546 8,436
    Which will really get them upset and they will leave anyway.
    Or more likely they will be more receptive to the sale and even help you when you arrive.

    Not telling staff about a sale is a good way to ensure the new owner will be unwelcome.
     
    Posted: Mar 8, 2018 By: fisicx Member since: Sep 12, 2006
    #16
  17. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    4,533 1,271
    If you didn't like their offer and didn't intend to use them why didn't you tell them that instead of just ignoring their calls.

    If you had told them that you didn't intend to take up their offer instead of just hiding from them this situation would never have arisen
     
    Posted: Mar 8, 2018 By: Ian J Member since: Nov 6, 2004
    #17
  18. Mr D

    Mr D UKBF Legend Free Member

    7,429 777
    So how will the staff find out from a letter that is not opened?
     
    Posted: Mar 8, 2018 By: Mr D Member since: Feb 12, 2017
    #18
  19. obscure

    obscure UKBF Ace Free Member

    2,184 486
    1. Unless the finance company was a party to/signed the confidentiality agreement between you and the salon owner they can't be bound by it and can't breach it. Just because you agreed to keep something confidential that doesn't mean they have to.

    Any decent confidentiality agreement will have a clause allowing you to reveal information to a third party who signs a similar agreement. Did your agreement with the salon owner have such a clause and did you get the finance company to sign a confidentiality agreement? If not then they didn't break the confidentiality agreement you signed... you did.

    2. You didn't suffer any damage therefore, even if you did have a basis for a claim, suing for damages would be a costly waste of time.

    3. The staff almost certainly didn't pay any attention to this unopened letter. I am sure that 99.99% of people seeing such a letter arrive at their work place would assume it was a postal mistake or a letter to a company that previous occupied the premises.

    4. You told the finance company you wanted their services and gave them a number of contact details. When you failed to respond they tried to contact you at an alternate address. They were trying to contact you because you asked them to. If you didn't want them to you should simply have replied to their original contact, thanked them and told them you were no longer interested in pursuing finance.

    Conclusion
    You don't have a claim (though the salon owner might have a claim against you) and even if you did it would be so weak that it would be pointless to pursue. Forget the matter and focus on buying the business (or doing something else).
     
    Posted: Mar 9, 2018 By: obscure Member since: Jan 18, 2008
    #19