Advice Regarding taking a Limited Company to the small Claims Court when they are no longer trading.

GHOD

Hi everyone. I'm after a little advice please.

So I purchased a 2014 Abarth in July this year. 6 weeks later and only having driven approximately 500 miles, a Check Transmission warning light appeared on the dash. I contacted the dealer and they agreed to repair and claim the cost back from my warrantee. Unfortunately, the cost of repairs exceeded my warrantee limit after the work was completed and the dealer refused to pay for the extra cost leaving me to pay nearly £3000. (New clutch and automatic gearbox was needed). Dealer was aware of my claim limit but still authorised repairs. 

Obviously I was unhappy with their response and was left with no choice but to pay for the remaining repair cost to get my car back. As the dealer was AA approved, I escalated the matter to the AA for ADR however, they failed to respond to the AA ADR team. The dealer has also closed their website down and removed all cars for sale from the AA website.

I have since sent a letter before court action to both their trading address and the registered address (Accountant) however the letter to their trading address has been returned to me as "no longer at this address). The letter was received and signed for at their registered address (Accountant).

So my question is, what happens if I win my claim and ultimately have to instruct a Bailiff? If the dealer is no longer operating at the trading address and can't be found trading anywhere else, what happens next? FYI they are still active on Companies House.

Many thanks

GrumpyDil

Have you checked that the company is still active on Companies house as this sounds suspiciously like they have wound the company up. 

GHOD

GrumpyDil said:

Have you checked that the company is still active on Companies house as this sounds suspiciously like they have wound the company up. 

Yes they are still active on Companies House and have been trading since 2015

born_again

GHOD said:

Hi everyone. I'm after a little advice please.

So I purchased a 2014 Abarth in July this year. 6 weeks later and only having driven approximately 500 miles, a Check Transmission warning light appeared on the dash. I contacted the dealer and they agreed to repair and claim the cost back from my warrantee. Unfortunately, the cost of repairs exceeded my warrantee limit after the work was completed and the dealer refused to pay for the extra cost leaving me to pay nearly £3000. (New clutch and automatic gearbox was needed). Dealer was aware of my claim limit but still authorised repairs. 

Obviously I was unhappy with their response and was left with no choice but to pay for the remaining repair cost to get my car back. As the dealer was AA approved, I escalated the matter to the AA for ADR however, they failed to respond to the AA ADR team. The dealer has also closed their website down and removed all cars for sale from the AA website.

I have since sent a letter before court action to both their trading address and the registered address (Accountant) however the letter to their trading address has been returned to me as "no longer at this address). The letter was received and signed for at their registered address (Accountant).

So my question is, what happens if I win my claim and ultimately have to instruct a Bailiff? If the dealer is no longer operating at the trading address and can't be found trading anywhere else, what happens next? FYI they are still active on Companies House.

Many thanks

If they have shut down then there is no funds to claim back. 
This is the danger with these court claims. You may win, but if they have no money, then you get nothing.
Common practise for many of these companies.
Just because they are still showing as active on Companies house does not mean they are. Check the directors on companies house & look at their history. If they have done it before, you most likely flogging a dead horse.

macman

What physical assets does the company have? If they just operate out of a rented lockup or portacabin then you are probably wasting your time, as there may be no assets to recover.
If you are going to proceed anyway, it doesn't matter where they are trading now: service to the registered company address at CH is all that is required. You may then win your claim, but find that recovery via bailiff action will cost you more and prove fruitless.
They may well start up a new company and continue trading elsewhere, but even if located, you will still have no claim against the old company if ceased trading.
Ultimately it depends on the value of your claim as to whether it is worth paying out now with no guarantee of recovery.

MysteryMe

How did you pay for the car?

daveyjp

It takes a few months to  close a business down. Even for a dormant company which has never traded it takes 2-3 months. For one which has gone into administration, liquidation or managed close down it can take 6-12 months.

GHOD

Thanks for everyone's response. I suppose I'll have to bear the loss as I don't think I stand a chance of getting any money back. Especially if they have left the trading address. As mentioned, I very well may win my case in court but a bailiff will have nowhere to go to seize assets or demand money