Question:
My small firm owed a business (large multinational not that it really
matters) a couple of grand.
This debt got to 90 days before we were able to pay it, during which time
we got a letter from a collection agency which detailed the debt plus
£172.50 in costs.
We have now paid the value of any invoices in full but this £172.50 I
have witheld. We had no advance notice of this and frankly at the
preliminary stage of a collection I feel it somewhat extortionate.
Can I refuse to pay it?
Answer:
-30 days.
I have no qualms admitting that this was well overdue, but my question is
more along the lines of whether a company can charge you any amount it
seems fit for writing to you to tell you that you still owe their client
money.
-Two points here:
1. The contract is formed when they make credit available or when you
purchase. If a term allowing debt collection charges to be added is
included, they can do it, otherwise they cannot.
2. The charge would need to be reasonable. 172.50 pounds seems quite
unreasonable for one letter where they knew your address. Even the
clamping office seems more reasonable.
See if there is any follow-up, it is probably a try-on. If the
company did advise you of the likelihood of such charge, and seem
serious about following up, send them say 10 pounds with letter
stating that banking the cheque is deemed to be full and final
settlement of the matter.
