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Go to court to get the commission networks owe you

There have been several letters in Mortgage Strategy recently about money owed to brokers not being paid, some wondering what can be done to secure payment.

I experienced a similar situation some years ago when I completed a project for a company.

I submitted my invoice and one of the directors refused to pay it saying I had already been paid. I asked for documentary evidence in support of this statement but none was forthcoming.

I then issued a County Court summons for the amount of the debt plus court costs, postage, telephone calls, my time at a reasonable hourly rate, petrol costs at the standard official mileage allowance and interest.

I had my summons issued but after 10 days there was no reply so the court proved the debt. I received a cheque in settlement soon after.

Had payment not been received, I was prepared to use the court service and send bailiffs round to seize goods to the value of what I was owed.

Brokers should know the packages available from courts are as helpful as the staff, setting out in simple terms the actions required.

The above-mentioned facility was recently used on a travel company and payment was recovered in full, including interest. A company car in the forecourt being clamped must concentrate the mind nicely.

As a last resort, if the money owed is from a limited company and more than the statutory minimum – which is about £750 – you can ask for a statutory winding-up order against the firm.

The facility to collect money owed exists so use it. There’s no excuse for not paying debts.

Ce Sheldon

By email

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