Accountant trying to charge me even though im not his client!!! Advice needed Please

PaulR6

Hi

Im new to the forums and ive been reading some advice on here and people seem very helpful.

last year i qualified in a profession and was debating whether to work for myself or a company. a guy i new quite well down the gym runs his own business and said i can introduce you to my account if you like, see how he can help if you wanted to start up your own business.

got a phone call from the guy i know saying spoke to accountant and said he cant see me because only deals with larger companies that turn over £250,000 + something like that anyway. and passed me onto a newer guy that deals with start up businesses.

i was asked would i like to come down for a free consultation to discuss what he could offer me. as in to get my custom. exactly the same if i went down to my bank to discuss if they could offer me a loan. look around and pick the best option...right.

went down with the guy i know to introduce me, sat down, talked about what i would be doing, how far along am i, how accountants work and what they offer etc. asked if i have a loan set up blah blah blah, he said he knows someone at natwest that he could have a word with if needed. i said im ok im currently having meetings with my own bank 1st. he said let me know. talked about how to do your books, i said havnt got a clue yet but i'll learn. he said ive got some templates, i'll send them to you.

all very friendly, thanks i'll be in touch.
i then get an email saying nice to meet you, heres the templates as promised. will need this this and this as in forms for id and address to get registered when ready.

i replied thanks, nice meeting you to, i havnt got my p45 yet from old job, i asked are these id's ok? havnt had meeting with bank yet. end of that email.

i got a second few months later trying to get me to join networking group hes part of (BNI) i weighed up the pros and cons and said no thanks and still not set up.

a year goes by and i had some family issues to help with and the recession was pressure (That doesnt matter anyway) i didnt get back to him or sign up as didnt get business going.

he sends a letter a year later asking for my forms of id to complete registration. i email hi....sorry i thought i emailed you but im not working self employed had a lot of family things to sort. not that they need to know that. he acts all polite and says sorry, no worries if you can confirm your address where i can send my bill for £150+ VAT..... what a shock here. PAY FOR WHAT?????

it seems a year later, no emails, i never signed up to him, free consultation chat. im all polite and saying sorry im confused. he says im charging you for my time and all my advice i gave you and emails.

please someone reassure me this is unacceptable. because he goes on to say hes charging me for emails, the templates which i didnt even request, just sent, 1hours time. oh and the best one....he arranged a face to face meeting and chatted about business loan with another bank when i clearly said im ok im arranging with my bank. more like he went down the pub with his mate to chat. and he only arranged the free meeting because of the relationship with that guy i know. as i said if i was his client a good accountant would talk and show me prices, etc, get me registered, both agreed and signed.

there was no such thing, a friendly chat. he now is emailing me saying thigs like i can clearly see your going to be difficult, i would hate to hand this over to our solictors for such a trivial amount. his exact words, i dont like being threatened. and also stated "regardless of whether you got set up, you used my services" What services...????

and then says "i merrily assumed you was signing up to us" you dont merilly assume.

i wouldnt look around a gym or go to the bank for a loan, they tell me what they can offer me. then you go away and have a think, if a year had gone past you dont assume their signed up. and if they dont decide to charge them for the look around.

Please can someone give advice on this situation. he doesnt bother me, but what does is him threatening me with solictors where its stress and hassle i dont need and maybe go into CCJ situation. i may not have much money but my credit score is good and dont want this runied from some guy trying to rob me blind.

Hope to hear as soon as possible.

Thanks

InsideInsurance

Why would he hand £150 bill to a solicitor? It is going to be small track claim so even if he wins he isn't going to get his legal fees paid.

The concerning part of your story is the statement that you asked if certain forms of ID were ok because you didnt have a P45. I highly doubt that this could be argued as consideration of the contract to make anything binding no matter how it was worded but could suggest intent.

If it were me, and this isnt professional advice, I'd just ignore it and it'll disappear. Worst case, keep £150+VAT + £30 court fee aside to pay for it and it won't effect your credit rating

olly300

PaulR6 you need to:
1. Phone up the accountant's office and ask the name (ask them to spell it out to you) of the senior partner in the practice.

2. Write a letter with the title "Formal Complaint" to that senior partner in the business. Send the letter by recorded delivery to the office address.

3. In the letter - keep it to one side of A4- simply state that that the named accountant offered a free consultation to you as a potential client on [date] and you decided due to personal reasons you couldn't not start your business. However you want it explained to you within 10 days in writing why this person is now trying to charge you and is threatening you via email with court action, otherwise you will complain to their professional body.

4. Then after 11 days if you get no reply, google the professional body the actual accountant you dealt with belongs to and phone them up stating you want to put in a complaint about one of their members. (If you can't find them then PM me the accountant's details and I will find it for you.)

It's likely before you get to step 4 you will be told that it's a "mistake". It's amazing how many "mistakes" accountants and solicitors make when you tell them you are going to complain to their professional body.

I should add even if this guy is the senior in the practice don't let that put you off. Once he realises his underhand tactics are going to be exposed he will leave you alone and other people.

erdd2

Op from what you say, this is the work of a chancer and a narrow escape you did not sign up with him.

I would follow ollys approach as it is sound advice and will also let the "chancer" know you will not be bullied!

chrismac1

No letter of engagement = no legal entitlement to sue for nada. Report this guy to his Institute Disciplinary & Ethics Committee - in the unlikely event that he's qualified. He's not an accountant, he's a BENT accountant.

PaulR6

Hi Everyone

Thanks for the quick replies, im glad im not the only one to feel that way, some people will do anything to get money out of people. either thought fine if your not joining i'll try and get money out of you. or business not doing well, whatever but im really annoyed trying to be bullied into paying

to answer your questions.

inside insurance: i said to him i dont have p45 from work yet, and was just asking in general chit chat these forms of id ok? but like you said surly in court they wouldnt allow that. but some bent people can make anything out of a sentence and twist it.

Olly: sounds sensible advice also, the only thing if i do that how do i word it so that also cant be twisted into something along the lines of im admitting meeting. which it was free, and saying now charging also for an hour.

see below last reply for what he thinks he did for me:

Hi Paul,

Please see below for our email exchange from this time last year; I subsequently performed the tasks I said I would (with your agreement) in our meeting – hence the time on the clock. Putting this into context I am charging you for one hour of my time over and above our FREE meeting, which I trust you agree is just and reasonable given your lack of communication to the contrary.

I had merrily assumed to hear from you with your books etc for me to complete your 10/11 self assessment tax return and, according to normal practice, I would have raised my bill to you once this had been completed. You at no stage told me you were only interested in an initial FREE meeting and hence I would not have incurred our firms costs if you had.

This time was chargeable whether or not you decided to run with the business idea and I am amazed to hear you feel otherwise as I had not charged all of my time due to the relationship we have with R.... C...., as a gesture of goodwill.

You are clearly going to be difficult with this, however once again I would politely request payment of £180, being £150 + VAT for the services rendered to date. Cheques can be made out to ‘P.... & .......’. I will issue you with a receipted tax invoice once received.

Once again please phone me to discuss should you wish to –otherwise I look forward to receiving payment. I would not wish to pass such a trivial amount to our solicitors; however I may have to should receipt not be forthcoming.

Kind regards

chrismac1

I repeat, no letter of engagement = no contract. Personally I am more than happy to have as many discussions with potential clients as they wish, I even had one who paid 2 standing orders then got recaptured by his former accountant promising the Earth. In my view if he felt on strong ground you would already have the tax invoice, he knows he has no chance in Court. If it was me I would have a simple 4 word reply:

Sue and be damned!

lordbase

chrismac1 wrote: »

I repeat, no letter of engagement = no contract. Personally I am more than happy to have as many discussions with potential clients as they wish, I even had one who paid 2 standing orders then got recaptured by his former accountant promising the Earth. In my view if he felt on strong ground you would already have the tax invoice, he knows he has no chance in Court. If it was me I would have a simple 4 word reply:

Sue and be damned!

Yeah I'd agree with Chris that without an engagement letter he's not really got a leg to stand on from a professional point of view.

We all do work for potential clients, whether that's meetings, emails, phone calls etc - if you get the client - great you can bill. If you don't get the client you write it off and move on.

PaulR6

Thanks guys

that was my understanding, so i dont need to make contact? just ignore him?

since making this post i already blocked his emails.

or ignore him but also make a complaint to his professional body

lordbase

I wouldn't block him, but simply write back to him asking for a copy of the engagement letter that you signed with him where you agreed to appoint him as your agent. Obviously he won't have one of these.

Add to the email that you are sure that he appreciates that without a signed engagement letter a court is very unlikely to accept that there was a contract in place and that without a contract he has no legal right to demand money from you.

Finally a gentle reminder that if he continues to pursue the alleged "debt" that you will be writing to his professional institute with an official complaint. That is assuming he is a member of a professional body.

FTBFun

I'd never bill (except in certain circumstances not relevant here) without a signed engagement letter in place and money laundering checks passed. As would most accountancy firms IMO.

Although you do get chancers after free advice, I don't think that's what you've done here OP. That firm really must need the money if they're being this agressive over £150.