How can I tell if con artist agent's account is personal or business?

oneborneveryminute

I visited the bank today and pretended I was going to deposit some money. I asked the cashier to confirm the account holder's name. She quite happily confirmed the account was a business account.

Does this basically mean I'm restricted to suing the company and not the individual? Is there any point taking legal action against a company which is folding?

SimonMrGreenWard

Depends how the business is structured. I'm guessing as an estate agent that they're a LTD company but probably that the directors have a personal liability.

Good luck.

princeofpounds

Is there any point taking legal action against a company which is folding?

There are provisions in law which allow you to appeal to a court to 'lift' the veil of limited liability and go for the person rather than the company which is being wound up specifically to avoid liability.

Unfortunately, I don't know what the exact rules are.

The point on the data protection act is true - the bank can disclose it. However, I don't think that means they actually have to.

princeofpounds

google "lifting the veil of incorporation" which is the term for what I mentioned.

oneborneveryminute

I've just spoken to my solicitor about this 'lifting the veil of incorporation' and await her reply.

Fatenbread

oneborneveryminute wrote: »

I've just spoken to my solicitor about this 'lifting the veil of incorporation' and await her reply.

AKA "piercing the veil".

Courts are generally loathe to do this though, so I think you'll struggle. There was a case where the court pierced the veil because the entity was found to have been set up solely to avoid an existing obligation, but generally cases in this regard are decided the other way.

Suing for wrongful trading or (if the proof is there) fraudulent trading are two ways you can reach the director, but this is going to cost you money and the damages if a civil action succeeds go to the creditors as a whole, not just to you. Also unknowable whether the crooked director has the means to pay damages.

Not sure what type of property deposit you are talking about. If it's a rent deposit its almost certainly not worth pursuing and writing off to experience.

For the avoidance of doubt, I'm not a qualified solicitor / barrister, so don't quote me - just my knowledge of company law from attacking companies that have gone bankrupt or otherwise wronged me...

ILW

Unless it is a fortune you are owed, you could just end up paying loads to your solicitor and getting nothing back. It may be worth considering writing it off to experience and cutting your losses.

oneborneveryminute

But is it not fraud or at the very least a wrong-doing to withhold the tenant's deposit when the contract clearly states that the agent will secure the deposit with the DPS within 14 days?

I can't understand how an individual can be allowed to hide behind a company name to avoid his responsibility. I guess I'm finding it difficult to come to terms with how easy it is for someone to set up a business and take off with other people's money.

JohnnyJet

oneborneveryminute wrote: »

But is it not fraud or at the very least a wrong-doing to withhold the tenant's deposit when the contract clearly states that the agent will secure the deposit with the DPS within 14 days?

I can't understand how an individual can be allowed to hide behind a company name to avoid his responsibility. I guess I'm finding it difficult to come to terms with how easy it is for someone to set up a business and take off with other people's money.

I'm really sorry to hear your situation. I have a similar story which involves a builder taking over 80k from me. He is currently dissolving his company to stop me taking him to court and apparently I have no way of getting my money back even though the small amount of work he actually did would have fallen down if not repaired. If I manage to get any information regarding personal liability then I will pass it on to you.

oneborneveryminute

Oh my goodness! I think my experience pales into insignificance compared to yours. I hope you find a way to get your money back.

I think this experience has increased my awareness that before we part with our money, we need to ensure there are fail safes in place to avoid this kind of outcome. Having said that, I did have a contract which I thought was water tight.

Next time I pay a company money, I will make sure there is a clause in the contract allowing me to chase after them as an individual.