Issues that can occur when in dispute with a trader
A dispute with a trader can be upsetting and very stressful. Things can get ‘ugly’ while remaining civil, adding more stress to an already challenging situation.
CAST will never suggest nor recommend actions that break the law. Ensure you remain factual, non-emotive and communicative. Remove yourself from any situation where you feel you may lose control or say/do something you will regret.
Here are some common problems you might face with a rogue trader and the tricks they may use to get more money or avoid being held accountable.
Contents:
- If they appoint Debt Collectors/Debt Collecting Solicitors
- Receiving letters from Debt Collectors/Debt Collecting Solicitor
- Threatening to sue you for Defamation/Slander/Libel
- Price Inflation
- Intimidation
- Being Threatened with Court Action
Debt collectors/Debt collecting solicitors
Debt collectors/ Debt collecting solicitors can be appointed by anyone to pursue a debt that someone feels that they are owed, that doesn’t mean they are always entitled to the money.
Check this section to judge if your trader has completed what was quoted and that the work is to a good standard.
You are under no legal obligation to pay a debt collector, unless the person who you owe money to has obtained a CCJ (County Court Judgment) against you. This requires the trader to take you to court for non payment of an invoice first.
See Top Tips on what to do if Debt Collectors arrive at your door.
If you have received a letter from a debt collector.
- Check their online presence.
- Check that the business contact information corresponds with the contact information on that debt collection agency’s website.
- Check that they have the right details for the amount owed and that it ties with any contract signed or quote provided
- Check that any details for payment are legitimate and not different to where you have paid previous invoices.
- Do respond and ask for clarification of the debt.
- Do state that the debt is in dispute and you are taking legal advice, your home insurance may provide you with some legal advice or even a solicitor to help in some instances.
You have 30 days to respond to a letter from a debt collector. Do not ignore it. Take your time and use this time to gain legal advice and check the details, there is no need to panic, they can only ask for the money, they have no power to compel you to pay.
Do take the time to check if your debt collector is FCA registered, be wary of those that are not.
If you have not received a satisfactory service from your trader and you receive a letter, it is OK to ask for further clarification and to say that the sum requested is in dispute.
Remember
If the work has not been completed to a decent standard and/or your trader has not completed the work, you do not have to pay. You can say that the amount is ‘in dispute’ and ask for further clarification.
Any reputable trader will be happy to come back and fix any errors/omissions before receiving payment.
Make sure you have followed the section on if it has gone wrong to ensure that you are complying with the law.
Contact your house insurance. Many insurers provide a free legal advice line and depending on your insurance may be able to provide you with a solicitor.
Top Tips: Dealing with Debt Collectors
Bailiffs have legal power, are registered and are authorised to enforce Court Orders.
Debt Collectors do not have this power, typically work on behalf of creditors or debt collection agencies. Their focus should be on negotiating payment arrangements.
If you do not have a CCJ against you and a debt collector has arrived at your door:
- DO NOT LET THEM IN. Make sure everyone in your home knows this. It is best to talk to them through a window or letterbox, or over the phone.
- Ensure all doors are kept locked, even if you are home, including your porch if you have one.
- If they say they are Bailiffs, they need to provide you with ID or ‘Enforcement Agent Certificate’ (check it on the Certified Bailiff’s Register). If they are not on the Register, tell them to leave.
- They need to tell you which company they are from and give you a contact for head office. They also need to follow rules and ask you questions about the house occupants (ie: disabilities, children, English comprehension). If they do not give you this information, tell them to leave.
- If they say they are Debt Collectors tell them to leave. They do not have the same legal powers as Bailiffs and have to go if you ask them to.
- If they physically threaten you,, your property, start to damage your property or refuse to leave, call 999.
- And update your diary.
Resources
https://www.fca.org.uk/firms/financial-services-register
Citizen’s Advice: Stopping Bailiffs At your Door
Receiving Debt collecting Solicitors/ Solicitors letters
If you receive a letter from a solicitor from your trader. Don’t panic and take the time to check the correspondence carefully.
Check the content of the letter to check if it looks like a solicitor’s letter. Look for the language used, grammar, spelling and punctuation. Does it look like a real letter?
Solicitors will send you a postal letter in a dispute situation, they do not attach a letter to an email.
- Google the solicitor’s company and check if the person named on the letter works at the solicitors named in the letter.
- Check the solicitors’ website with the same checks as for the letter: is the language used, grammar, spelling and punctuation, commensurate with a solicitor’s website.
- If necessary, ring them from their website telephone number that you have located, not the website link on the solicitor’s letter and don’t use the telephone number on the letter, to check they are genuine – and that the person named on the letter still works there.
- Check that the details around the complaint are accurate and relevant to your dispute.
It is a legal requirement for solicitors to be registered with the Solicitors Regulation Authority, who will issue them with a Solicitors Regulation Authority (SRA) number. You can confirm the letter solicitor’s details and their SRA number with the SRA under ‘Solicitors Register’ . Any genuine solicitor will include this on their letters to you.
You have 30 days to respond to a letter from a debt collector solicitor, please do not ignore it. Take your time and use this time to gain legal advice and check the details, there is no need to panic, they can only ask for the money, they have no power to compel you to pay.
Remember
If your work has not been completed to a decent standard and/or your trader has not completed the work, you do not have to pay. You can say that the amount is ‘in dispute’ and ask for further clarification.
Any reputable trader will be happy to come back and fix any errors/omissions before receiving payment.
Make sure you have followed the section on if it has gone wrong to ensure that you are complying with the law.
Contact your house insurance many insurers provide a free legal advice line and depending on your insurance may be able to provide you with a solicitor.
Resources
Threatening to sue you for Defamation
- Defamation: The over arching law for Slander and Libel
- Slander: Defamation of a person through a ‘transient form of communication’ ie: speech.
- Libel: Defamation through a ‘permanent form of communication’ ie: the written word.
The Defamation Act (2013) was introduced in order to reform the law surrounding defamation and to ensure that a fair balance between the protection of reputations and freedom of expression was being attained.
The aim of the Act is to redress the imbalance that existed between the protection of reputations against defamation and freedom of speech before its introduction.
CAST recommends caution about naming and shaming your trader if you are planning on going to court as it may prejudice your case. However, section 2 and 3 of the Act make provision for truth and honest opinion.
Therefore, if you are providing a review of your trader ensure that your review is factual, non-emotive and can be substantiated with evidence.
Resources
A really interesting overview of Libel & Slander and the distinction in Defamation,
Price Inflation
If your trader provides you with a ‘quote’ it is a fixed price for the job and they should not be charging you more money, unless you have asked for them to do extra work or they have uncovered a problem while undertaking the work.
An ‘estimate’ is a price for a job that may rise or fall depending on what is found when the job is progressing.
If they have uncovered a problem and extra work is required, they should have provided you with a written quote before undertaking that work if the work is valued over £42, whether it is a quote or estimate.
There should have been a written agreement from you that they can undertake the extra work and they should have offered you a 14 day cooling off period.
Anything that is completed without your consent (preferably written) over £42 is unenforceable by the trader under the Consumer Contracts Regulations (2013).
Any reputable trader will give you time to consider their quote/estimate and will not pressurize you into agreeing quickly. You have the right to consider their new quotation/estimate.
Resources
Consumer Contracts Regulations (2013)
https://www.which.co.uk/consumer-rights/regulation/consumer-contracts-regulations-ajWHC8m21cAk
The Consumer Rights Act (2015)
https://www.which.co.uk/consumer-rights/regulation/consumer-rights-act-aKJYx8n5KiSl
VAT
If they are charging you VAT check they are legally allowed to do so. If they are not VAT registered you do not have to pay VAT.
If they say they are in the process of going through VAT registration, which is a valid reason to not have a VAT number, you can withhold the VAT until they can produce (and you have checked) a valid VAT number.
Intimidation
Police will state that an issue between you and your tradesperson is a civil matter and will not take up the case.
Receiving threats or hate speech from a tradesperson is not a civil matter. You can report these to the police and insist on a case number. Keep a record of this number as every matter that arises can be added to that number, creating a solid record.
If you are feeling threatened by your trader, ring 101 immediately and report them. If you are in immediate danger call 999.
You can take additional steps to protect yourselves by
- Ensuring you bring the contract to a legal close, and quickly.
- Set up your phone so it can record directly to the cloud. This means that if your phone is damaged/lost/stolen any recording is safe.
- Making sure their equipment is off your property. If this means you need to return this to their property ensure you call in some help, record the equipment’s condition before and after it has been moved. Do not damage the equipment.
- This will ensure there is no reason for the rogue to return to your property.
- Evaluate the need for installing cameras, with a record function, on your property. There are some minor legal elements to cover but this will give you peace of mind and recorded evidence of a rogue trader coming onto your property when they have no reason to be there.
Contact trading standards to report your trader if you are feeling intimidated or you feel they are not treating you fairly. You can do this through Citizens Advice. They may already be aware of your trader.
Resources
https://www.citizensadvice.org.uk/consumer/get-more-help/report-to-trading-standards
Being Threatened with Court Action
Rogue Traders will sometimes threaten court action to try and encourage you to pay. If you find yourself on the receiving end of one of these messages, then please follow the section on ‘if its gone wrong’
Take your time to assess the situation before taking any immediate action. A reputable trader will wait and will not pressurize you into action.
Check if you have legal cover through your house insurance, many home insurers will provide you with a solicitor or a legal advice line.
Remember:
Communication with your trader is key. Keep all communication written from this point in, preferably by email.
Keep all communication with your trader factual.
Do not be pressurised into making a decision. Courts will not penalise you for this.
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