Old Invoices from supplier

IndieGirl

Hello all

Apologies if this is posted in the wrong area - I wasn't really sure where to put it.

My partner owned a business which has recently closed (Aug)

He has suddenly been sent 4 years' worth of invoices from the council for glass collection. It is a substantial sum and he has never received any other communication from them until now.

My question is - does he have any grounds for disputing this given that they have never contacted him previously? I have briefly looked at the Limitation Act and it seems to suggest that although they can chase for payment on invoices up to 6 years old - they may not have this right if they have not engaged with the consumer regularly. Anyone have any expert knowledge on this?

Many thanks

the_lunatic_is_in_my_head

I would say sometimes things go wrong which favour us and we keep quiet, sometimes that works in our favour, sometimes things get straightened out and a bill arrives.

I'm assuming by the mention of a substantial figure the collection of glass was something to do with the business activity rather than the odd empty drinks bottle so it should have noticed there wasn't a charge occurring for the service.

If the business was a limited company you'll need to seek advice on whether the council have any claim against the company.

If your [STRIKE]husband [/STRIKE] (apologies, partner) was a sole trader it's very likely they'll seek to recover the funds and will have the authority to do so.

davidmcn

IndieGirl wrote: »

I have briefly looked at the Limitation Act and it seems to suggest that although they can chase for payment on invoices up to 6 years old - they may not have this right if they have not engaged with the consumer regularly.

Which section are you referring to here?

DoaM

IndieGirl wrote: »

My partner owned a business which has recently closed (Aug)
<snip>
if they have not engaged with the consumer regularly.

Assuming the latter statement is even true ... it fails at the first hurdle.

IndieGirl

davidmcn wrote: »

Which section are you referring to here?

I found this:

The Act only applies if you have maintained regular contact with the customer regarding this debt for example you have sent them a monthly / quarterly statement of account.

If you have failed to maintain contact then the debtor (your customer) may be able to claim that the outstanding debt is statute barred under the Limitation Act 1980.

Just wanted to check all avenues, as 4 years is a lot to be billed for in one hit...

the_lunatic_is_in_my_head

IndieGirl wrote: »

I found this:

The Act only applies if you have maintained regular contact with the customer regarding this debt for example you have sent them a monthly / quarterly statement of account.

If you have failed to maintain contact then the debtor (your customer) may be able to claim that the outstanding debt is statute barred under the Limitation Act 1980.

Just wanted to check all avenues, as 4 years is a lot to be billed for in one hit...

The problem would be that in this instance it's a business to business contract so any consumer law wouldn't apply. There's very little in the way of protection regarding business to business transactions.

If you do go down the road of paying the council may well be open to the suggestion of instalments.

davidmcn

IndieGirl wrote: »

I found this:

The Act only applies if you have maintained regular contact with the customer regarding this debt for example you have sent them a monthly / quarterly statement of account.

If you have failed to maintain contact then the debtor (your customer) may be able to claim that the outstanding debt is statute barred under the Limitation Act 1980.

Ok, so not from the Act itself then.

You haven't told us where, but you appear to be quoting from this article where the context is chasing up an old invoice rather than having just issued one.

4 years is a lot to be billed for in one hit...

Presumably it's also a lot of waste to expect to have been collected for free?

mattyprice4004

Did he not notice he wasn't paying, or hoped he'd get away with it?

I ran a busy business for 6 years, but still knew exactly what should be going out, so wouldn't have let it slide for so long.

IndieGirl

mattyprice4004 wrote: »

Did he not notice he wasn't paying, or hoped he'd get away with it?

I ran a busy business for 6 years, but still knew exactly what should be going out, so wouldn't have let it slide for so long.

The supplier changed, and he didn't notice. Although he was the owner he did not manage day to day - it was an unfortunate mistake. The supplier didn't notice either and 'forgot' to invoice for 4 years -so there is fault on both sides.

unholyangel

The website you're quoting from is advising the person owed that the act cannot always be relied upon by the person who owes them money.

So rather than the 6 year limit not applying and a shorter one applying, its that the defence of "statute barred" created by the act does not apply and cannot be relied upon by the debtor.

But the time limit usually runs from the last time they acknowledged the debt or made a payment.

pramsay13

What was the business?

Was the glass collection a major part of it?

What was agreed at the start with regards to payment and invoicing?

Was your partner a sole trader or ltd company?

How has the business closed?