£3,000 late payment fine from Jewson’s - whilst company closed.

LJC18

Hello,

My husband’s company has been closed during lockdown. We emailed and spoke to Jewson’s accounts to ask if we could delay payment during the coronavirus pandemic, as payments coming into the business had also been delayed. Jewson’s accounts agreed to this and sent an email to confirm this. The company has been closed, however have since received correspondence to say Jewson’s have sought legal advice and we will incur a £3,000 fine, which is due ASAP. This seems absurd whilst our company was closed. We have never missed a payment previously. I wondered if anyone has any advice in this situation?

Thank you,

LJC 

poppy12345

Have you rang them to speak to them?

comeandgo

This seems ludicrous, are you sure the correspondence is from them and not some sort of scam?  

lincroft1710

Companies cannot impose "fines", penalty charges possibly, but these have to meet certain conditions to be legally enforceable.

unholyangel

Private companies cannot "fine" you. Are you positive they said fine or is that your own wording? 

LJC18

Thank you both for your quick response. It is legitimate, not a scam! Although it sounds like it should be! When we have called accounts team they have said it is out of their hands and to only speak with Jewson’s solicitor. Jewson’s solicitor have said we need to pay or seek legal advice and go to court. I will try their head office but wanted to try MSE first. 

[Deleted User]

LJC18 said:

Hello,

My husband’s company has been closed during lockdown. We emailed and spoke to Jewson’s accounts to ask if we could delay payment during the coronavirus pandemic, as payments coming into the business had also been delayed. Jewson’s accounts agreed to this and sent an email to confirm this. The company has been closed, however have since received correspondence to say Jewson’s have sought legal advice and we will incur a £3,000 fine, which is due ASAP. This seems absurd whilst our company was closed. We have never missed a payment previously. I wondered if anyone has any advice in this situation?

Thank you,

LJC 

I will work through things logically. First the fact that your business was closed is irrelevant, the fact that you have decided not to open post/read emails is your choice and entirely irrelevant to the debt and requirements to pay them on time.
The matter of paying the debt relates to the email you received from Jewsons, what agreement that contains and what position that puts you in legally. If the email contains a formal agreement of a payment break or change of credit terms then that is one thing, anything less and you would be on far shakier grounds. Also what did the email agree to, eg did it agree to change from 30 days to 60 days, but you have taken 90 days?
With regard to a "fine", that depends on your contract with Jewsons. I do not know what terms Jewsons offers credit, is it an interest charge, a debt collection agency fee, how much the total owed and overdue is etc. 
First you need to establish what this "fine" relates to, what legal basis it is being imposed under and if it is legally correct. I would also say that it would also be a good idea to bring the account up to date, pay all invoices that are due. If you can provide the exact wording of both the original email and the "fine" from Jewsons people on here may be able to help more. 

lincroft1710

Check your contract with Jewsons or if no contract, the terms and conditions of all the transactions you have heard with them. You should then know if there is any basis for their solicitor's stance

daveyjp

For any meaningful response there needs to be far more detail, but if you owe them money and they have started recovery proceedings you need to get negotiating with them quickly.

How much doyou owe?
What extended paymemt terms did you agree?

LJC18

lincroft1710 said:

Companies cannot impose "fines", penalty charges possibly, but these have to meet certain conditions to be legally enforceable.

Thank you, ‘fine’ was my wording we are incurring a ‘late payment charge’. I understand in normal circumstances but I would have thought in current climate it would be different. 

LJC18

unholyangel said:

Private companies cannot "fine" you. Are you positive they said fine or is that your own wording? 

Thank you, yes sorry that was my wording. We are incurring a ‘late payment charge’.