Sometimes companies and individuals can employ tactics that delay and frustrate. If you want to find out some of the common excuses we hear in debt recovery, check out our blog on the “most common excuses” debtors give to avoid paying. One such debtor had attempted to do such to an AYOM client recently. Thankfully, our collections team handled the situation quickly.
Private company dispute
AYOM were instructed to pursue a debt for produce supplies. The debt was owed by a pub in the south-west. After starting the debt collection strategy the pub made contact with our collectors. The debtors claimed it was owned by a limited company, and he was a director.
One of the senior debt collectors looked at the company and noticed it had recently applied for a CVA (Company Voluntary Arrangement). This is an attempt at telling us the business would simply go into liquidation rather than pay. The possible result of that would be the client would likely receive very little to no return. Getting a CVA would have meant that the creditor may have had to wait a long while to see if they were due any money. If they were entitled, it could just be just pence in the pound.
On researching the invoices it was discovered they were made out to the pub itself (which was actually a completely different name than the limited company). The pub was therefore not in fact a limited company at all. Furthermore, the pub’s website had no company incorporation information. It should have stated the company’s registered office, registration number, and that it was registered in England and Wales. None of this was available, which had our team questioning the debtor’s statements to us.
This meant that the creditor could reasonably assume they were dealing with the owner of the pub and not an incorporated company. Subsequently a letter before claim was served on the owner of the pub (who naturally tried to continue claiming it was not his debt). But, when the claim had almost reached court he made contact and settled the debt.
Many debt recovery companies would have accepted the CVA and hoped there was a respectable dividend at the end - but after going that extra mile AYOM were able to get the debt settled for the creditor.
Seeking fast restitution
Such an important part of what we do is the ability to deal with debt fast. Waiting for arrangements and legal proceedings can be a time consuming process. Sometimes those routes will still not make a debtor pay quickly. What our team aims to do is challenge stalling tactics like a CVA to find the quickest solution.
It is not always obvious for our clients initially to see through these attempts. Thankfully for them, our experienced team know what to question and how to handle the situation. If you would like advice on handling a troublesome debtor, you can get in touch. Call us on 0800 130 3357 or email enquiries@ayom.co.uk for more details. No matter the size of your debt, or the willingness of the debtor, we have the skill set to get the money you are owed back.
Need a little more convincing? Take a look at some of our other success stories on our testimonials page. See what we can do for you today. Choose Are You Owed Money, experts in debt recovery.