Paid for a service that hasn't been delivered?

PrincessLou

Please can somebody advise me on the following situation. Sorry it is vague in areas, I’m just keeping it anonymous.

We employed a professional sole trader a couple of years ago to do some work for us and paid in advance. Part of this was a service that had a specific value in the contract, this service has not been done nor have we received a refund. We have chased on a number of occasions but all we have had back is delaying tactic rhetoric.

We sent a letter giving a final deadline (of over a month) or we would file a claim in court, the deadline has now passed. We did get a response back from him admitting that the money is not available as his accounts have been frozen by his bank as a result of him defaulting on a loan and he is currently in a debt management plan, which we would have to sign up to as one of his creditors and wait a long time for repayment. He claimed that if it went to court it would not achieve anything as he would just submit proof he couldn’t pay anyway.

Can anyone give advice on how to proceed?

vuvuzela

PrincessLou wrote: »

Please can somebody advise me on the following situation. Sorry it is vague in areas, I’m just keeping it anonymous.

We employed a professional sole trader a couple of years ago to do some work for us and paid in advance. Part of this was a service that had a specific value in the contract, this service has not been done nor have we received a refund. We have chased on a number of occasions but all we have had back is delaying tactic rhetoric.

We sent a letter giving a final deadline (of over a month) or we would file a claim in court, the deadline has now passed. We did get a response back from him admitting that the money is not available as his accounts have been frozen by his bank as a result of him defaulting on a loan and he is currently in a debt management plan, which we would have to sign up to as one of his creditors and wait a long time for repayment. He claimed that if it went to court it would not achieve anything as he would just submit proof he couldn’t pay anyway.

Can anyone give advice on how to proceed?

This seems like a learning experience about why not to pay things upfront, unfortunately.
You need to ascertain whether or not the statements he has made about a DMP are true or false and then work out whether to file a small claims action or risk throwing good money after bad.
Personally I think I would go ahead with the small claims and get a CCJ against him if necessary, but then I hate being ripped off.