The Perils Of Privatisation - Part X
News8 mins ago
Debt Collection
3 Answers
Just had a call from Final Demand.biz who wanted to see if we have any bad debt, we have and before I talk to them again, I wondered if anyone has had any dealings with them, or even heard of them.
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1. The company has been in existence for less than 2 years. (The Companies House website shows the date of incorporation as 30/09/08).
2. The company's website states this:
"Following County Court or High Court routes of litigation can prove to be arduous, costly and largely ineffective. Debtors will use the system to their advantage. Frustration becomes a key issue following this route. Our legal teams prefer insolvency procedures. Fast, cost effective and legally aggressive to provide protection for our clients, these principles have become the ethos of our service."
As I read that, Final Demand Ltd will frequently seek to send a debtor bankrupt, without going via the usual CCJ route first. So this quote from the Insolvency Service's website then becomes relevant:
"Q: How do I make someone else bankrupt?
A: Instruct a solicitor, but be aware that this is likely to cost you £1500".
So Final Demand Ltd would like to make your debtors bankrupt. That's going to cost them around £1500 per debtor, so you can bet that you'd end up paying far more yourself. Once you've made a debtor bankrupt, the receiver will distribute their assets among the creditors. You might only get a very small percentage of what you're owed. To make matters worse, Final Demand Ltd will probably still be acting as your agent, meaning that they'll retain some of that money for themselves.
You could easily end up paying, say, £2500 per debtor, in order for the receiver to get a few hundred pounds back for you, with Final Demand Ltd taking much of that by way of fees.
AVOID! AVOID! AVOID!
Chris
2. The company's website states this:
"Following County Court or High Court routes of litigation can prove to be arduous, costly and largely ineffective. Debtors will use the system to their advantage. Frustration becomes a key issue following this route. Our legal teams prefer insolvency procedures. Fast, cost effective and legally aggressive to provide protection for our clients, these principles have become the ethos of our service."
As I read that, Final Demand Ltd will frequently seek to send a debtor bankrupt, without going via the usual CCJ route first. So this quote from the Insolvency Service's website then becomes relevant:
"Q: How do I make someone else bankrupt?
A: Instruct a solicitor, but be aware that this is likely to cost you £1500".
So Final Demand Ltd would like to make your debtors bankrupt. That's going to cost them around £1500 per debtor, so you can bet that you'd end up paying far more yourself. Once you've made a debtor bankrupt, the receiver will distribute their assets among the creditors. You might only get a very small percentage of what you're owed. To make matters worse, Final Demand Ltd will probably still be acting as your agent, meaning that they'll retain some of that money for themselves.
You could easily end up paying, say, £2500 per debtor, in order for the receiver to get a few hundred pounds back for you, with Final Demand Ltd taking much of that by way of fees.
AVOID! AVOID! AVOID!
Chris
PS: Here's what you really need to know about chasing up business debts:
http://www.hmcourts-s...ms/ex350_web_0409.pdf
http://www.hmcourts-s...ms/ex350_web_0409.pdf
1 to 3 of 3
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