A lien on some products?

mrsfenwick

Hi im back after a quiet week or 2. Im guessing the OR has contacted one of my old suppliers who I owed money for a display stand with some products on.I had paid half and couldnt afford to pay them again. Today i have a letter from them to my home address telling me they have a lien on the stand and products. When i closed my buisness i handed they keys back and left. What is a lien, what happens now

antonic

A lien means that you have been supplied with goods/services and not paid your supplier.

The supplier then asks for payment and can sue you if they want to.

warwicktiger

A Lien is a legal charge, bit like a bank holding the title deeds to "your" property until you have paid for it.

fermi

http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch1-12/Chapter9/part5/part_5.htm

mrsfenwick

I havent got the products to give back so now what happens? The amount was £400. How do i know they have a lien, is it something they can just say or did i have to agree to it ? If bankrupcy doesnt clear this debt am i expecting more letters of the same from all my old suppliers?

Mouse1812

Your supplier is using the wrong terminology.

A lien is a right to hold your property until payment has been received. Most commonly used by the local garage who will not give you your car keys back until you have paid the bill. They can't have a lien on something they do not have in their possession.

Your supplier might be confusing this with “reservation of title” whereby they claim the ownership of the goods does not pass until you have paid for the goods.

Either way just forward a copy of the letter to the OR for them to deal with.

warwicktiger

Often a supplier will include a phrase in their terms and conditions along the lines of..."All goods supplied remain the property of xyz Ltd until such time as payment has cleared through the banking system.

You may well have not noticed in the "small print", but its to cover them in case a customer goes bankrupt. They may use this to try and reclaim the goods from you.

mrsfenwick

Thankyou for your replies. As i say i dont have the products to return anyway so i guess i will just have to see the next step. Just another thing to worry about. They were all used testers so I didnt even cross my mind to rescue it when i handed they keys back. What do you tihnk they will do next? take me to court?

Mouse1812

mrsfenwick wrote: »

What do you tihnk they will do next? take me to court?

Nope, any such claim is included in bankruptcy for OR to deal with

mrsfenwick

Thankyou I shall contact the OR with the letter. Im hoping he didnt see me as wrong doing for leaving them in the premise. I know the landlord disposed of all i left. Will he get in trouble for this ?