MCA (Membership Collection Agency) Problem

[IsaacBear]

Hi

 

 

Im wondering if you can help. I have seen the blogs regarding a company called MCA - Membership Collection Agency and im hoping for some advise.

 

 

We are a small sole trader business that utilise MCA to collect our membership fees. However, they have been withholding payments on a regular basis.

 

 

As they are not regulated by the FSA is there anything that we can do?? Isnt this classed as fraud?

 

 

Any help you can provide would be very much appreciated

 

 

Thanks Em

[slick132]

Hi IsaacBear and welcome to CAG

 

To enable us to help, can you say what sort of business you run or what type of m/ship fees MCA collect on your behalf.

 

Has this always been an issue or has it got worse recently.

 

Have they given you any reasons for the delays.

 

[IsaacBear]

Hi, thanks for your reply.

We are a small gym and MCA collects our membership fees.

 

This is something that happens intermittently throughout the year and regularly enough to cause problems.

 

It's kind of the opposite end of the spectrum from the comments on the original blog as we are the opposite end of the spectrum, but any help you can provide is really gratefully received ��

 

Oh sorry - no reason given for delays - just fractious conversations with no outcome

[slick132]

Hi IBear,

 

It's usually gym members complaining about gyms and their admin companies. This is the first time in over 7 years I've seen a gym complaining about their admin company.

 

I think there are serious concerns when an agent or intermediary is slow in passing on funds, whether they are a gym admin company, a lettings agent, an employment agency, etc. When a body is bad at managing their business, that could be a warning about their liquidity, and future ability to function.

 

Have you raised your concerns with senior management at MCA.

 

Have you ever put your concerns in writing.

 

I'd put them on written warning that any future transgression would result in you taking your business elsewhere. If you're in a contract with them, you need to take legal advice before making any changes.

 

Edited August 6, 2015 by slick132

[IsaacBear]

Hi

 

 

Thanks for your reply. It is concerning, but from the telephone conversations we have had with the administrator (who is the only person we manage to get through to) it isn't a new thing. They have done this to us several times since we started using them (over 2 years ago) but this is the first time they have flat out refused to pay us.

 

 

When we try and speak to David (the main man apparently) he is either 'never in' or doesn't answer our emails. Its such a frustrating situation to be in - £500 might not sound like a lot but to us its a huge amount!

 

 

I have drafted a letter to send to them recorded delivery giving them 24hrs notice before a legal complaint is made, but I didn't know if this was the right thing to do to be honest??

 

 

Thanks Again

[slick132]

Hi Bear.

 

Not sure what you mean by a legal complaint.

 

You can tell them you require your money to be paid immediately, failing which you'll take legal advice with a view to suing them for what they owe.

 

As I said above, you need to check the T&C's governing your business relationship and take legal advice before you actually DO anything.

 

I assume you are looking at alternatives ...........

 

[IsaacBear]

We are and have managed to find a more reputable company to work with us.

 

 

I didn't know what to put in the letter tbh - but ill tailor it to say what you've advised above.....

 

 

We will get the T&C's checked to be on the safe side before doing anything but I really do appreciate your help - thank you

[slick132]

Put a draft here first if you want but I don't think you need say much more than I said above.

 

[IsaacBear]

Brilliant! Will do - it's on my works computer, so once I'm back in I'll put it on to see what you think.

 

Thanks