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Statutory Demand Threat Personally For Company Account

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  • #16
    Re: Statutory Demand Threat Personally For Company Account

    Right that's better, a proper keyboard!

    OK, basically the deal is. Ashley 'buy' a percentage of all credit card sales I make over a set period of time. In this case 20k worth. They add on a 6k finance fee at the beginning of the deal, give me the 20k then proceed to intercept all my credit card sales, take 14% and give me the rest until all 26k is paid. Effectively, I sell back 14% of all card sales.

    I've done this before with another company and it worked beautifully, the idea being that repayments fluctuated with turnover and as it was paid back little and often and as it was taken at source, it was relatively painless. In principal it's a good idea. Problem is with this lot though is that when I tried to instruct* both my credit card providers to switch the account they paid into from ours to Ashley's they asked for info that Ashley could not provide. When I got the previous deal with another provider it was very clear that the idea was that it would suit seasonal businesses that had fluctuating turnover. Most of my sales are in the last 3 months of the year. This 'agreement' however seems to demand that a certain turnover is maintained but this is not how it was sold to me by the rep. I was led to believe it was 'on average' and as that was the same as the other company I'd already done a deal with I didn't question it. They are now using this as another reason for attempting to cancel the agreement even though they cannot possibly know what my turnover is from month to month.

    *To instruct Merchant A & Merchant B to pay into another account required me to sign pre-prepared letters that Ashley had constructed as if they were from me, send them to Ashley who then sent them to the Merchants.

    Not a sole trader, a Ltd Co.

    Got the guarantee but can only add later.

    Thanks!

    Gollum

    With the

    Comment


    • #17
      Re: Statutory Demand Threat Personally For Company Account

      Ahhh thank you. Okay. So when one of the PDQ peeps couldn't make the direct payments did you do the second option ?
      #staysafestayhome

      Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

      Received a Court Claim? Read >>>>> First Steps

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      • #18
        Re: Statutory Demand Threat Personally For Company Account

        Can you point to where it states the 14% in the contract pls.
        #staysafestayhome

        Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

        Received a Court Claim? Read >>>>> First Steps

        Comment


        • #19
          Re: Statutory Demand Threat Personally For Company Account

          Because of the slight cloak and dagger nature of the letters I had to sign that were then sent to Merchat A and Merchant B, I suspect that what they are doing is not entirely, I hesitate to use the word legal, so lets say acceptable by the card merchants. When I got the letter from Merchant A asking for proof of the account by way of void cheque or letter from the bank (Ashley's) I immediately sent it to Ashley and they did nothing for 2 months. Eventually in a phone call they admitted to me that because Merchant A has a competing product they ask for information knowing that Ashley can't provide it, presumably because either they don't have a cheque book or if they sent a letter it would be clear that the account is not mine!?

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          • #20
            Re: Statutory Demand Threat Personally For Company Account

            Page 2, section A para 2

            When you say option 2 do you mean pay a fixed weekly amount to them?

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            • #21
              Re: Statutory Demand Threat Personally For Company Account

              If so then the very short answer to that is, I tried to but Ashley tried to impose a new agreement requiring me to give them my debit card details of the Ltd Co account. Given that they were already retaining 100% of card payments from Merchant B (that continue to be made BTW) I would not agree to this. I also questioned why a fixed amount was required when they had no control over that should both Merchants be paying to their account. I ended by offering them a reasonable weekly amount but they responded by asking for an unatainably higher weekly amount. Communications broke down shall we say.

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              • #22
                Re: Statutory Demand Threat Personally For Company Account

                All sounds a bit wonky and their contract isn't particularly definitive on anything.

                So you need to do something to stave off them sending a statutory demand. So maybe a letter detailing all the anomalies in the contract and making a reasonable repayment offer for the loan under different terms would be an idea. You should also check your terms with the Merchants.
                #staysafestayhome

                Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                Received a Court Claim? Read >>>>> First Steps

                Comment


                • #23
                  Re: Statutory Demand Threat Personally For Company Account

                  That's what I was hoping to do but wanted a bit of guidance first to ensure I was on safe ground. If I put something together would you be good enough to look it over first before I send it?

                  I have advised them I am currently seeking legal advice and the in-house solicitor had requested I provide them with the name and address of solicitor immediately. Am I obliged to provide this?

                  Comment


                  • #24
                    Re: Statutory Demand Threat Personally For Company Account

                    Only if you engage a solicitor - then yes you would have to as correspondence would have to be through the solicitors firms.

                    Happy to help with the letter, you probably want to do a timeline, a summary of what your understanding of the contract was, what the contract actually says, and what they are claiming the contract is - as I feel they may vary rather substantially. As well as exactly how the contract is working in practice - ie them keeping 100% of payments of one merchant etc.

                    Also the Merchants terms - if they have terms in stating that the practice of having payments made to a third party and forwarded on is not allowed then that's not down to you.
                    #staysafestayhome

                    Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                    Received a Court Claim? Read >>>>> First Steps

                    Comment


                    • #25
                      Re: Statutory Demand Threat Personally For Company Account

                      Thanks so much for your advice Amethyst......

                      When you say 'not down to me' re the Merchants terms what do you mean exactly?

                      Comment


                      • #26
                        Re: Statutory Demand Threat Personally For Company Account

                        Well, if the PDQ providers have terms about payments being made to third party accounts then it isn't your fault that the loan model didn't match up with the PDQ terms. And the basic business model of the loans would be flawed, particularly if the PDQ provider is a major provider.
                        #staysafestayhome

                        Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                        Received a Court Claim? Read >>>>> First Steps

                        Comment


                        • #27
                          Re: Statutory Demand Threat Personally For Company Account

                          Oh and.... I'm receiving emails from Ashley's in-house solicitor headed 'without prejudice'. Does that mean I can't share what she says here?

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                          • #28
                            Re: Statutory Demand Threat Personally For Company Account

                            Yes! I already argued that point with them and suggested, because of the admission that they know PDQ providers ask for evidence they can't provide, that the whole basis of the loan was flawed, particularly as they knew there was a possibility of it happening. It is a major provider. They didn't like it when I questioned them on that.

                            Comment


                            • #29
                              Re: Statutory Demand Threat Personally For Company Account

                              Do those Without Prejudice letters contain a serious attempt at settlement ?

                              Just means can't be bought up in court (if they do try settlement offers) - otherwise its a nonsense.

                              And yes share them here if you want to.
                              #staysafestayhome

                              Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                              Received a Court Claim? Read >>>>> First Steps

                              Comment


                              • #30
                                Re: Statutory Demand Threat Personally For Company Account

                                Originally posted by gollum View Post
                                Yes! I already argued that point with them and suggested, because of the admission that they know PDQ providers ask for evidence they can't provide, that the whole basis of the loan was flawed, particularly as they knew there was a possibility of it happening. It is a major provider. They didn't like it when I questioned them on that.
                                Good. I doubt they'd like to answer the point in court either. Hence trying to scare you with the statutory demand threat.
                                #staysafestayhome

                                Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                                Received a Court Claim? Read >>>>> First Steps

                                Comment

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