sales commission being reclaimed because customer defaulted on credit

[geordieboy]

Hi. I work for a company that supplies medical aids. I sell direct to the public. my company has a subsidiary company that provides credit to enable customers to buy the medical aids. one of my customers bought a medical aid about 10 months ago on a 18 month credit agreement. I filled in the credit application forms and the customer signed. The credit company agreed the credit and I was paid commission on the full value of my sale.

Now nearly a year later the credit company inform me that the customer has defaulted on her credit payments and they are going to take back the proportion of the commission paid to me relating to the balance defaulted on..

Can they do this? I did not approve or give the credit, just completed the forms for the customer to sign. surely the credit arrangement is between the customer and the finance company - finance was agreed by them with nothing to do with me....surely they should take the risk for the default,not me???