Business Warning About Payment ‘loophole’

Feb 05, 18 Business Warning About Payment ‘loophole’

Business Warning About Payment ‘loophole’

Business Are Getting Warned About The Payment ‘Loophole’

‘Legal loopholes’ are being utilized by debtors who are hoping that they can escape payment. Companies are advised to watch out for this latest activity by debtors.

Ian Kay is an expert debt recovery supervisor at Napthens solicitors located in Lancashire. Ian Kay informs a number of clients have obtained responses to invoices or needs for payment they are unfamiliar with that have become often being presented by means of a ‘promissory note’.

Such promissory notes are as an ‘I Owe You’ and so are legally accepted as authentic ways of making a payment. The promissory notice identifies responsibility and recognition a debt happens to be outstanding and the notice can be enforced relative to its terms.

However, many companies are unfamiliar with the promissory payment method and therefore may end up send it back again to the debtor.

Ian Kay highlights and cautions that in sending this promissory notice back again to the sender is seen to be refusing the payment therefore businesses may be struggling to concern legal proceedings to recuperate your debt when requesting it at a later time.

A debt recovery supervisor, Ian Kay explains: “Unfortunately, debtors may stay away from a debt employing this legal promissory note, frequently not completely understanding their function.

“I’ve acted for businesses which were sent a promissory notice in the wrong belief that it could, in itself, clear your debt without more action required. Financial firms not the case, therefore both business and the debtor could be unaware of the how such methods actually work.

“It is very important for a business to be cautious if it gets something uncommon from a debtor that statements is has been submitted approval of a personal debt. It is advisable to avoid sending back again the promissory notice and any additional correspondence also to get legal assistance where appropriate.

“It might easily be a debtor attempting to utilize this legal ‘loophole’ is in fact experiencing a financial problem that could be handled easily through discussions with the business enterprise.”