Small Claims Court worth the hassle?

[ElijahPaul]

He have a company that owes us £320 for a quarterly invoice.

They have ignored our request for payment since the invoice was generated in 2nd July, and due 1st Aug.

Is £320 worth pursuing in Small Claims Court?

Or more 'hassle' than it's worth?

 

[AndrewEardley]

I've been through small claims a few times, and with the exception of filling out the first form, didn't find it that much work to do

The costs are added to the amount claimed, so provided you win, you have nothing to lose financially

Go for it!

 

[Richie N]

Send a 7 day legal letter before, you can get this from solicitors for a small amount.

 

[arcon5]

Whether its worth it depends on the credentials of the debtor.

 

[ElijahPaul]

Thank you all for your replies. We drafted and sent/emailed a 7 day legal letter yesterday.

And after almost 8 weeks of no communication from them, we received an email reply with the intent to settle the outstanding invoice.

We'll wait an see if we receive payment within the next 7 (working) days.

Thanks everyone. I'll be sure to post again in 7 days if we receive payment.

 

[ElijahPaul]

Well goodness.

Since my last post. We sent numerous emails requesting the invoice be settled.

And every time we received some excuse as to why the payment was further delayed.

So we made a claim via Money Claim Online today, and forwarded this onto them.

After weeks of no communication, we received a reply within 5 mins (literally) that payment would be made by tomorrow.

So we'll wait and see (again).

 

[cholland]

If you have spent money already with money claim them I would notify them that this is now due!

 

[ElijahPaul]

If you have spent money already with money claim them I would notify them that this is now due!

Thank you for your comment.

We did spend £35 on the claim + added £6.13 (8.5%) interest for the time overdue.

The client has now responded refusing to pay the additional £41.13, and has threatened to put a stop to the cheque they say they have sent if we do not accept the original amount owed, which is £321.00

Their excuse, is that the cheque was prepared but not sent.

Should we accept this?

Since it's been almost 3 months without payment and tons of excuses, I'm inclined to accept.

On the other hand. It annoys me that they have the cheek to say they will defend the action in court based on the above excuse!

Any advise appreciated as always.

Eli

 

[simon field]

Wait and see if the cheque arrives and don't do anything till it's banked and cleared.

Then move on

 

[ElijahPaul]

Wait and see if the cheque arrives and don't do anything till it's banked and cleared.

Then move on

Thanks Simon,

Since we've received excuse after excuse, I think this is exactly what we'll do.

I'll be sure to post here again if and when their payment clears.!

P.S. I'm still in a state of shock at the shear lameness of their excuse for avoiding the claim fee and interest.!

 

[arcon5]

Tell them in which case you will return their cheque and see them in court. They clearly don't want court otherwise they would have dragged it out further - I'm betting they'll pay up in the end.

Or cash the cheque an amend the claim to the balance remaining after fees was added.

 

[Charlie B ACS]

If they do cancel it, it makes great evidence in court!

 

[ThePublisher]

Don't respond in any hurry, they've ignored you for long enough. If the cheque turns up, keep a copy of it before you bank it to show the date on it (it could be back dated) along with the envelope it's been posted in which will hopefully have a readable frank.

I've had people try and play the back dated cheque trick on with me in the past when I've gone down the moneyclaim route, including one who sent a backdated cheque when he'd always paid by BACS previously. I kept a copy of the cheque, and the envelope it arrived in, and went for judgement for the court fees after writing to the debtor telling I had a copy of the cheque and the envelope.

Bank the cheque, wait til it clears, then go for judgement on the fees. The court are quite happy for you to do this.

I've only once not been paid and that was somebody who went bankrupt on me.

 

[Banksbroo]

I've gone small claims route in the past - threat of it is enough to get most people to pay up, but for those companies on the brink of collapse, they will just ignore it.
The court seems to have no enforement mechnaism. We have won judgements, costs etc, then the client has simply refused to pay and we were further out of pocket.

Small claims is more effective against individuals and partnerships than Limited companies.

I think effective credit screening pre-sales, and strict terms enforcement after-sale is more effective in the long term.

 

[Charlie B ACS]

There are enforcement options open to you, High Court Enforcement is probably the best, as they have more powers than a court bailiff.

After that, 3rd Party Debt orders, handy if you know their customers, or bank account details. Charging orders (If they own property) or lastly, as an embarrassment for them, and to find out more, you can apply for them to be questioned by the court.

 

[ElijahPaul]

Update:

The client has now emailed informing us that, since they haven't heard from us in the last day and a half, they've put a stop on the cheque (they claim to have sent!).

Should I wait and give them a couple of extra days before taking any action?

P.S. Thank you everyone for your continued comments and advice, I appreciate them all during this debacle.

P.P.S. It's almost laughable that they demand an immediate response from us after ignoring us for weeks at a time!

 

[Homer J Simpson]

Time to take them to court I guess..........

 

[ThePublisher]

I'd push the court route now.

 

[arcon5]

Don't even bother replying - just let the court claim run its course.

 

[Charlie B ACS]

I agree, push the button now.

 

[AndrewEardley]

It would be interesting to see if you actually get a cheque from them

If you do, I would still bank it; and see what happens. If it comes back unpaid then so be it, but if it goes through (because they couldn't be bothered to actually stop it) then great you have your money!

 

[ElijahPaul]

Quick question:

Since they sent an email (ultimatum) stating that unless we accept the original payment amount (less claim costs) they'll cancel the cheque, can they use this against us in court?

i.e. Can they claim: Well we offered to make payment, but they (my company) did not respond (We haven't responded yet to that email).

Eli

 

[DavidWH]

We currently have 2 cases going through mcol.

One sent as cheque for £96.00 but not the fee's etc, we're trying to recover those, or will proceed to the next step. If they paid the invoice its evidence that they owed us the money.

The other customer is considerably more... Still early days though.

If you receive a cheque from your customer I'd presume the courts will see that as an admission of the debt.

 

[arcon5]

Quick question:

Since they sent an email (ultimatum) stating that unless we accept the original payment amount (less claim costs) they'll cancel the cheque, can they use this against us in court?

i.e. Can they claim: Well we offered to make payment, but they (my company) did not respond (We haven't responded yet to that email).

Eli

So long as you reasonably tried to collect the debt before court then highly unlikely.

Don't even reply to the email tbh, they know what you want already

 

[ThePublisher]

Quick question:

Since they sent an email (ultimatum) stating that unless we accept the original payment amount (less claim costs) they'll cancel the cheque, can they use this against us in court?

i.e. Can they claim: Well we offered to make payment, but they (my company) did not respond (We haven't responded yet to that email).

Eli

You've got the admission that the debt is due. You'll be the one using this against them in court (if it ever gets that far which I doubt). The court doesn't take kindly to people who don't pay what they owe when it's due and are well used to people who try and wriggle off the hook when they realise it's going to cost them court fees.

Go for it.

 

[Newchodge]

Quick question:

Since they sent an email (ultimatum) stating that unless we accept the original payment amount (less claim costs) they'll cancel the cheque, can they use this against us in court?

i.e. Can they claim: Well we offered to make payment, but they (my company) did not respond (We haven't responded yet to that email).

Eli

You can use it against them - they have acknowledged the debt. Did the (cancelled) cheque ever arrive?

 

[ElijahPaul]

Thank you everyone for your comments/advice.

Well....

A cheque for the original amount arrived on the 1st Nov and cleared on the 6th!

So i guess after emailing that they'd stopped the cheque they decided otherwise and sent another cheque.

So it's now a question as to whether or not to pursue the court fees (£41) from them.?

 

[ThePublisher]

I would....

 

[simon field]

Yup, me too.

Treat it as a little hobby

 

[AndrewEardley]

Definetly!!