AYOM recently assisted a Fortune 500 company trace and recovery money from 2 debtors who attempted to hide their true intentions.
 

American Debt Collection

Recently an American based Fortune 500 member company instructed AYOM to recover two large debts from two separate limited companies based in the Slough area. The company makes computer components and bespoke engineering equipment.

The debt recovery strategy was initiated immediately. Shortly afterwards one of our agents attended the debtors’ offices. What we discovered was highly unusual. One of the addresses turned out to be a house; while the other company address was just a mailbox address. The mailbox address was very close to the first house.

It seemed too much of a coincidence that two large orders were made to the same company in America from so close together. An investigation was launched into both debtors’ affairs. It was found that the directors of both companies had a history of opening and closing companies together. The debtors perhaps thought they would fool the system by opening up two different companies this time. Luckily, AYOM’s systems and investigation’s team were able to detect the scheme.

Breaching laws

As the case unfolded an agent from AYOM’s insolvency team noticed that the purchase orders had no incorporation information on them. These orders were sent by emails which again had no company details attached. This is effectively a breach of the Companies Act 2006:

On business letters, order forms and websites, you must show:

  • the company’s registered number
  • its registered office address
  • where the company is registered (England and Wales, Scotland or Northern Ireland)
  • the fact that it’s a limited company (usually by spelling out the company’s full name including ‘Limited’ or ‘Ltd’)

https://www.gov.uk/running-a-limited-company/signs-stationery-and-promotional-material

This also meant AYOM could issue proceedings against the directors; this is exactly what happened. Both directors had mortgages and cars registered in their own names. Because of this, it was deemed that there was a very good chance of recovery.

AYOM’s solicitor issued proceedings and the papers were served at each of the director’s homes. One of the debtors contacted the offices the next day and arranged to pay the debt back at £2,000 per month. That debt is now cleared with just some costs and interest remaining. As such proceedings were cancelled. The other director is slower but is still paying. They know that proceedings will be reinstated if the debt is not cleared within the next three months. Many other debt recovery companies would have given up the chase, because both limited companies had no assets on the surface. But AYOM left no stone unturned and managed to find a fundamental flaw in the debtor’s dealings, leading to a successful outcome for the creditor.

A balanced strategy

Recovery of debt often requires much more than conversations with the debtor. In this case the combination of our insolvency and legal teams assisted with finding the truth behind both debts quickly.

It takes a skilled, thorough team to look at minute aspects of debt recovery. Attention to detail is everything. Are You Owed Money prides ourselves on not giving up if a debt requires some hard work. Having dealt with numerous stalling tactics in the past, we are well versed in handling any debtor.

If you are struggling to locate or deal with a debtor; be it a personal or business debt, let us take the stress away and recover your money. For more information on what we can do for you take a look at our services pages or call us on 0800 130 33557. You can also send an email to enquiries@ayom.co.uk.