Anyone done a LBA and followed it up?

mobilejunkie

Downright wrong indeed. He wants examples; I have many. Including one company which DID fold where I got paid three cheques just before they collapsed simply because I had sent LBA's and threatened to sue. It's utter rubbish and extremely poor advice to suggest writing it off. I currently have 10 cashback contracts, have been doing them for years - AND look after as many for several other people (including many from here). Suing (or being on the verge of suing) has happened a few times, but none of us have EVER lost money by so doing.

As for cashback schemes being something to avoid; only if you don't do your research, follow the ground rules and take action immediately should the dealer not fulfil their side of the contract.

What hogwash to claim that cashback schemes are designed to stop 80% of their customers succeeding. If that were so - given the number I have and am doing - hardly anyone else would get their money. REALLY bad advice - and I've seen lots of THAT on here on my time. Crystal balls, lack of knowledge and assumptions dressed up as rose-tinted glasses.

Incidentally, the company which collapsed was a higher risk dealer where the value of the phones was more than the remaining outstanding cashback and (since I've done so many and apart from thsi instance I always make a good profit from each one) was an acceptable exception. It represents a very small percentage of all the deals I've done, but I had walked away when a dealer didn't pay up I'd have lost more than I actually did there. When I used the dealer I accepted the risk and didn't complain when it went wrong; that was now years ago and I live off cashback deals without too much difficulty.

One of the main groundrules is to go into a cashback deal assuming you will have to sue - then it is rarely necessary but you will always be in a position to take action (and win) if needbe. Maybe Buzby had one bad experience through ill judgement and tarred all cashback contracts with the same brush.

ianG

Thanks for all the different POV. I think what is happening is that IMP assume that as I am just 2 redemptions away from the end of contract I will let it drop, basically they are calling my bluff. On the other hand they may be about to go down the pan and just fail to operate. However, their web-site is still around and they have a blog with entries just last month.

It has been very helpful to read through the linked threads as well to get a better idea of what happens but I am still not 100% sure about how I can win this as they will have been down this path many times before but it is a first time for me. Being experienced in the IT contracting market I am well aware of how agencies can just fold up the company while owing thousands to contractors and then restart under a slightly different name with the same directors and simply wash their hands of previous claims.

Guys_Dad

Go to MCOL (Money Claim Online) web site and check how much you would have to pay to take them through the process.

Weigh that up against the outstanding amount, remembering that if you win - and you will if you follow the simple instructions - you will be awarded your costs as well. You don't have to go to a court either.

You will then be able to claim the amount if the company is still in business. They will either pay up or you can appoint bailiffs to collect or seize goods.

It's a pretty painless process.

Quentin

Guys_Dad wrote: »

You don't have to go to a court either.......

You do if the claim is contested.

And appointing bailiffs to get your money is another cost, (£100), on top of the claim and possible hearing costs to bear in mind, (which you only get back if the bailiff is successful!)

Far from "painless" if they cannot pay!

mobilejunkie

Being 100% sure about how to win (in essence) is being able to prove that they received a valid claim within the timescale laid down in your t&c. If you can prove that (as you should if you have followed the groundrules) you will win. Otherwise, you will not.

Guys_Dad

Quentin wrote: »

You do if the claim is contested.

And appointing bailiffs to get your money is another cost, (£100), on top of the claim and possible hearing costs to bear in mind, (which you only get back if the bailiff is successful!)

Far from "painless" if they cannot pay!

I take that point, as my first post on this thread can confirm.

However, they are only likely to contest it if (a) they are remaining trading and (b) they believe that they are in the right. If you are 100% certain that you have complied, then they are not likely to contest if they know they are in default.

Bailiffs are only worthwhile if the company is still trading from premises and have goods to seize - certainly not worth appointing in other circumstances, as you say.

Quentin

Guys_Dad wrote: »

.......However, they are only likely to contest it if (a) they are remaining trading and (b) they believe that they are in the right. If you are 100% certain that you have complied, then they are not likely to contest if they know they are in default........

Are you speaking from experience over using the court to sue for late cashback?

If so, you have been lucky!

The companies usually keep playing the game right up to the line.

eg. CPW group always submit a defence to buy them time (a cynical pro forma defence from their solicitor denying they owe you anything at all). This buys them time, during which their in house admin people try and get you to accept a lesser amount than you have claimed, forget any interest and promise to pay future claims on time.

No doubt they will succeed with some people using these tactics!

Guys_Dad

No. My experiences have been with builder and a friend who lent money to someone who did a runner.

I have, however, read this forum for some time and I have seen many posts by others, including yourself, and I agree that, from what I have read, CPW do, indeed, follow the line you state.

However, by "pretty painless" I perhaps should have elaborated by saying that you will almost certainly not have to attend court, which is a great worry and turn-off for some people. It just isn't in companies' interests to pay for a lawyer to attend court when they are clearly in default . I am sure you will agree with that.

Don't undo the good advice given in your first post and worry the OP based upon our previous disagreements some time ago. :beer:

Quentin

Guys_Dad wrote: »

....Don't undo the good advice given in your first post and worry the OP based upon our previous disagreements some time ago.

Where do you draw that logic from?

It seems that with no experience of taking legal action to get money out of a mobile phone cashback company you tell us it will be a "pretty painless process", which you now say really means you are unlikely to have to attend court! Quantum leap or what? And glibly advise appointing bailiffs if you don't get paid after winning a judgement without mentioning the extra £100 in costs that would involve!

And the OP should be worried by subsequent info that has turned up in the thread.

Paying out for MCOL for this outfit seems dangerous!

Silk

I suppose to get back to the OP's question "Anyone done a LBA and followed it up?"
The answer is everyone who has taken out a claim through the courts has followed it up
In order to make a claim you have to do a LBA in order to comply with Civil Procedure Pre-Action Protocol.

If it was me in the OP's situation providing I could prove the debt could be traced to Shebang I would follow it up without hesitation. Shebang are reputed to have something like £100m turnover

I would tend to agree with GD that it is fairly painless.
Having experiance of taking quite a number of companies to court, both in a business and private capacity over the years I've only had to attend court once (which was a waste of time as the debtors never turned so judgement was awarded anyway)

On a couple of occasions I've had to resort to further lengths to get paid, including one of which I had their bank account frozen (cost £100 but well worth it) we were paid 3 days later.

A trick I learnt many years ago was when possible send a copy of the LBA to the directors home address as well as the business address. This has the advantage of letting them know you are serious and that you know where they live and may also add some persuasion from the people they live with. Well worth the extra postal cost usualy.