Can Company Administrator do this ?

JGWT8M

Quick question for those who know about Company Law.

I would like to know if the Administrator of a Limited company which has been placed in Administration, is he/she legally obliged by some legislation to contact all debtors and creditors at the time the company is placed into Adminstration?

Bit double dutch but should be understandable

Backstory: ( I won't mention any names because it's quiet a famous brand in my field and I don't think a lot of people know what's happened yet)

I am self-employed running a small business, I have credit card debts (which are being addressed in an adult manor with Payplans help) and also owed the company concerned some money, the company went into administration (I wasn't the only one to owe them) and have recently been harrased by two different debt collection agencies for the outstanding balance.

At no time have I been contacted (until today) by the Administrator to tell me what is going on or to ask me to pay, in fact I didn't even know the company had folded until last week, a month after it happened - today I had a very upleasant conversation with the Administrator who accused me of all sorts and said if I didn't pay or make an offer to him within 7 days he'd bankrupt me - be my guest you'd be doing me a favour was my though but I didn't say as much.

So, is the Administrator legally obliged to contact debtors (i.e. people who owe him money), or can he just pass it to a debt collection agency without telling anybody - I am fully prepared to go toe to toe with this guy in court as if I told you the whole conflicting, potentially fraudulent backstory I'd be here all night (its 5 x A4 pages of timeline), but I just wonna know what his obligations are so I can throw something in his face that'll make him sit up and take notice of me.

Anyway thanks in advance, and any pointers to relevant laws/acts will be very much appreciated.

Pobby

Think this needs a bump!

JGWT8M

Thanks, I believe that because I am a sole trader and not a company, the "agreement" I had with the original company is governed by the Consumer Credit Act, so I am going to go down that avenue for the main part.

Neither the Administrator, nor his TWO DRA's have sent me anything in writing, so I can see the next few weeks are going to be interesting.

Spoke to Business Debtline and they were amazed at the "unprofessional and unethical" manner in which the Administrator and his agents had acted, sugested a course of action to take and sugested I had a very good defence.

But if anybody does have something to add, feel free

tyllwyd

I did a search to see if anything useful came up, but everything I could find talked about the obligation of the administrator to contact creditors of the company, but didn't mention debtors. I guess that in order to sort out the affairs of the company the administrator is going to have to contact debtors to try to get the money in, but I couldn't find anything that referred to a statutory requirement to do so.

I assume that the administrator is a licensed insolvency practitioner - there is the ability to complain to his authorised body http://www.insolvency.gov.uk/howtocomplain/complaininssip.htm

Hope you get things sorted.

JGWT8M

thanks tyllwyd

The longer this goes on, the more I wonder how these people get licensed. I never signed anything with the company, they never explained terms, stated the agreement was open ended and I could return items unsold for credit, I even asked them not to do it but they just ignored my request.

The administrator has never contacted me, I had to phone him yesterday after my Wife had been threatened with having a "Bailiff knocking the door down tomorrow", he denied virtually everything I stated, refused to co-operate and said he would bankrupt me within 7 days.

There are two debit collectors chansing me for payment, neither one has provided any written documentation, and sometimes refused point blank to identifiy themselves on the phone until pushed into it, they refuse to supply any documentation and do nothing but threaten to "send the bailiffs to collect my goods".

I have requested, in writing, that they keep all communication to written form, to date, nobody has phoned, but I havn't received any letters either.

Neither the Administrator or his agents have stated clearly to me who I should be negotiating with, or who has authority over what, or even what the outstanding balance is, one of the Debt Companies has been making offers which the Administrator has denied and stated they were never authorised to do so, the other Recovery Agent has said the first has purchased the company and instructed them to collect, again the Administrator said this was incorrect and not by his authorisation.

Everybody I have spoken to has said to call their bluff and although at first I didn't want to, I'm leaning towards it, how they are going to convince a Judge that I have been unco-operative and refused to pay is beyond me when I don't even know who is dealing with what and never been contacted by anybody other than to threaten me verbally.

The Administrator called me a "blatant liar", had "delibrately avoid paying" and "refused to co-operate in his investigation" - how can I co-operate when he doesn't even contact me?

When I asked him why he (or his agents) hadn't written to me, his response was that "we don't do thing like that", he also said he "couldn't care less about any other debts I had and had priority" (excuse me!) and "refused to accept my reasons for not contacting him" - how the hell am I supposed to contact him if nobody writes to me and tells me the company have folded.

I have send them a CCA1974 request and am looking forward to their response, I am not one for shirting my responsibilities but I am dam well not being bullied into making payments to someone when I have no guarantee from anybody about the results, especially as there are three parties all claiming they want the payments.

Having read what I've written, it's actually made me laugh for the first time in a few days, this is just crazy, the complaint letter is already being written.

All of the above makes MBNA look polite, calm & honest by comparison.

Kevicho

Firstly they need to provide you with written proof that these debts belong to you

Insist that once you receive a copy of these then you may be willing to co operate by investigationg.
Dont state anything else and dont let them in the house

Also if they continue being abusive say you will report them to ...(someone help me out here) as there behavious is harrasment

JGWT8M

thanks Kevicho, I wrote to them all on the 16th requesting the documents and to refrain from contacting me by phone, I also stated that the actions of themselves had been unprofessional and their agents were bording on a breech of S40, AoJA 1970.

He denied this on the phone and said I was a liar.

Don't worry, nobody is going to get in the front door If somebody does turn up here (unlikely) then they will be asked to remove themselves from the property and if they refuse the Police called.

My one and only concern is I've moved in the meantime, I've told them my new address but I have a feeling that, because of what the've done so far, they coud server papers at my old address in vain hope it will stop me defending the action, so I'm going to call my old landlord later and explain the situation to him so he is kept in the loop.

I've never been in this situation before, I've been a creditor, but not a debtor and am amazed how these people can treat you, it's just bullybody tactics and I was bullied as a kid so I know how to handle them

skippy64

I would definetly be checking solicitors in my area and going for a free initial consultation with one just to clarify what are your responsibilities at this stage.
Its amazing to hear how you are being threatened by the administrator and wish you well in your fight over this. I think what comes across clearly is that you are not trying to walk away from this debt but actually trying to follow the due process by your requests so far to the administrators for relevant information.
Best of luck and keep us informed.

bargainbetty

I would write to the Director of the original company, stating that you have been contactedby an Administrator purporting to represent his organisation. Tell him that you and your wife have been threatened, harrassed and bullied by these people and by two other parties claiming to have evidence of your debts.

Stipulate that all further communications must be in writing, and contain documentary evidence of the debts. Say that you have been unable to obtain any written evidence from the Administrators, and are in the processing of formally complaining to the regulatory authories about them. Ask that the letter be passed to the Administrator,to ensure that any further business is transacted in a proper and legal manner.

Demand details of outstanding debts, so you can offer a settlement figure but state that it mustbe made in writing, with a guarantee of formal recognition of the debts clearance.

Don't let them bully you into handing over money that you have no way of guaranteeing will be noted against your account. You have a perfect right to refuse any requestnot properly documented in writing - but make sure you have the letter sent immediately, so they cannot claim before a judge that they have been writing to you. Send it recorded mail,and insist that all their letters are sent in the same fashion!!

Bullies trying to getevery penny they can - did you know the people who can make the most money out of a business closure are the administrators? Their bills come second only to staff payroll.

OK, rant over, I hope it will be useful. Best of luck xx

JGWT8M

exactly what I though, thanks Skippy64 & bargainbetty.
Will keep this thread updated on what happens.

JGWT8M

just had a quick look at Companies House and present records show the registered address as being the Administrator's address so I will be writing there...