Supplier in administration

[Indigorose]

I have received a phone call this morning from an unknown finance administration company chasing an invoice which was paid directly to the supplier on 10th April 2019 in full.

I have since contacted the supplier to find out that the company went into voluntary liquidation on 31st March 2019.

The person I spoke to earlier today has told me that despite us paying the invoice directly to the supplier, the debt is still outstanding as it should have been paid to them?

This would mean we would end up paying the invoice twice? Is this legal? I am able to evidence payment etc and we have received no correspondence from the administrators?

 

[Nochexman]

It sounds as if the amount you paid was to the wrong entity. Are you able to recover the payment you made?

 

[The Byre]

I would have thought that the money paid to the original company should have been handed over by those who received the money to the liquidation estate. Whoever has that money is withholding assets that belong to the estate.

 

[deniser]

How did you pay the invoice?

 

[Ian J]

I have received a phone call this morning from an unknown finance administration company chasing an invoice which was paid directly to the supplier on 10th April 2019 in full.

The person I spoke to earlier today has told me that despite us paying the invoice directly to the supplier, the debt is still outstanding as it should have been paid to them?

This would mean we would end up paying the invoice twice? Is this legal? I am able to evidence payment etc and we have received no correspondence from the administrators?

It sounds like your supplier was using a factoring company and the invoice probably had a notice on it that it had been assigned to them and was only payable to them.

If that is the case then I'm afraid that you will indeed have to pay the invoice again and rank as an unsecured creditor with the supplier's Administrator

 

[WaveJumper]

Ian

Is there anyway a business can protect themselves from this (too late in this case I understand) I assume from the OP above they had no idea this was happening

 

[Ian J]

Ian

Is there anyway a business can protect themselves from this (too late in this case I understand) I assume from the OP above they had no idea this was happening

If the supplier was factoring there would have been a notification on the invoices that the invoice had been assigned to XYZ Factors and was only payable to them so in those circumstances they would have known that it was happening.

 

[WaveJumper]

If the supplier was factoring there would have been a notification on the invoices that the invoice had been assigned to XYZ Factors and was only payable to them so in those circumstances they would have known that it was happening.

Ian

Cheers I think I was having a moment there, yes I have seen this before in my previous business so I should have known the answer, always worth making sure you have the correct recipients set up in your accounting system.

 

[Engage Legal]

Get the Finance co to put it to you in writing so you have a record of what was said and what they have alleged you have/have not done.

Then reconsider your position.

 

[Ian J]

Get the Finance co to put it to you in writing

That might be difficult as his post starts off with "I have received a phone call this morning from an unknown finance administration company"

 

[parkingandsecurity]

Im sure they will be in touch again at which point he can ask for it?

 

[Ian J]

Im sure they will be in touch again at which point he can ask for it?

It seems like pretty pointless advice as he knows what was said.

I am wondering if the OP's lack of response is due to the fact that he/she has now checked the invoice in question and has seen that he/she paid the wrong party

 

[parkingandsecurity]

@Ian J apologies I was referencing getting it in writing. At the same time said unknown company who called him have made it difficult for him to pay without knowing who they are.