Jump to content
  • Tweets

  • Posts

    • Yes, let us know if they honour the agreement to pay.   Thanks for Donation made and anything further you can make - it helps us keep helping !
    • Mark Bauwens from France takes us through his week during the coronavirus pandemic. View the full article
    • Thankyou very much i will be around all day it would be appreciated Below is another attempt :     IN THE COUNTY COURT AT ***************                 CLAIM NO:**********     BETWEEN:   LOWELL PORTFOLIO I LTD CLAIMANT   and   MRS *********************** DEFENDANT   ------------------------------------------------------------------------------------------------------------------------   WITNESS STATEMENT OF ******************   ------------------------------------------------------------------------------------------------------------------------   I, ******************************************* WILL SAY as follows:   I make this Witness Statement in support of my defence in the claim.     INTRODUCTION   1. It is my understanding that the claimant is an Assignee, a buyer of defunct disputed or bad debts, which are bought on mass portfolios at a much reduced cost to the amount claimed 10p to 15p in the £1 and to which the original creditors have already written off as a capital loss and claimed against taxable income. Lowell Portfolio I Ltd issue claims to circumvent and claim the full amount of debt to maximise profit.   2. As an assignee or creditor as defined in section 189 of the CCA this applies to this new requirement on assignment of rights. This means that when an assignee purchases debts (or otherwise acquires rights under a credit agreement) it also acquires certain obligations to the borrower including the duty to comply with CCA requirements (such as the rules on statements and notices and other post-contractual information). The assignee becomes the creditor under the agreement. This ensures that essential consumer protections under the CCA cannot be circumvented by assigning the debt to a third party.   BACKGROUND 3. The Claim relates to an alleged Credit Card Agreement between the defendant and Vanquis Bank   4. Whilst it is accepted that the defendant has in the past had financial dealings with Vanquis, the defendant is unaware of what alleged debt the claimant refers, and the defendant has not entered into any contract with the Claimant.   5.The defendant made a formal written request to the Claimant for them to provide me with a copy of my Consumer Credit Agreement as entitled to do so under sections 78 of the Consumer Credit Act 1974 on the 27th August 2019 along with the standard fee of £1.00 postal order to which the defendant received a reply dated 6th September 2019 putting their account on hold whilst they tried to gather the information.   6.The defendant received a reply dated 24th October 2019 with no CCA attached other than the documents which enclosed a statement, default notice, notice of assignment from Vanquis to Lowell & a reconstituted copy of an agreement which the claimants have already provided in their witness statement dated 3rd August 2020.   7.On 15th January 2020, I received a claim form from the County Court Business Centre, Northampton, for the amount of £******. The claimant contends that the claim is for the sum of £********* in respect of monies owing under an alleged agreement with the account no ******************* pursuant to The Consumer Credit Act 1974 (CCA). Contained within the claimants particulars the claimant states that the account was subject to assignment from Vanquis to Lowell on 24 June 2015 with notice given.   CONCLUSION 8.To date no valid full true copy of the executed credit agreement or the terms and conditions have been disclosed .the claimant has no grounds on which to enforce this alleged debt.   9.The claimant disclosed various screenshots taken from the originators software of the application and also confirms on their covering letter the relative legislation The Electronic Communications Act 2000 with regards to wet signatures and the requirement of a tick box to validate the application. The screenshots are devoid of any tick box or any authenticity of IP address conformation check.   10.Therefore the claimant remains in default of my section 78 request and pursuant to section 78 6a of the CCA1974 the claimant is not entitled, while the default continues, to enforce the agreement.   11.For the above reasons the claim bought by the claimant is without merit and an abuse of the court process. It would be far more gracious and forthright for the claimant to admit that they do not have possession of the correct valid paperwork and this is an attempt to mislead and convince the court that the claimant can disclose the legal valid documents on which its claim relies on. It is therefore requested that the Claimants Claim is struck out pursuant to the above.   STATEMENT OF TRUTH   I, ************** the defendant, believe the facts stated in this witness statement are true. I understand that proceedings for contempt of Court may be brought against anyone who makes, or causes to be made, a false statement in a document verified by a statement of truth without an honest belief in its truth.   Signed: …………………………………………… Print Name: ************* Dated: 4th August 2020
    • Allen Blue, who co-founded professional network LinkedIn, reveals how start-ups can achieve growth. View the full article
    • for want of clarity   this potential £5k is only available in England.    
  • Our picks

    • Curry’s cancelled my order but took the money anyway. Read more at https://www.consumeractiongroup.co.uk/topic/423055-curry%E2%80%99s-cancelled-my-order-but-took-the-money-anyway/
      • 11 replies
    • Father passed away - Ardent Credit Services (Vodafone) now claiming he owes money. Read more at https://www.consumeractiongroup.co.uk/topic/423040-father-passed-away-ardent-credit-services-vodafone-now-claiming-he-owes-money/
      • 8 replies
    • Currys Refuse Refund F/Freezer 5day old. Read more at https://www.consumeractiongroup.co.uk/topic/422656-currys-refuse-refund-ffreezer-5day-old/
      • 6 replies
    • Hi,  
      I was in Sainsbury’s today and did scan and shop.
      I arrived in after a busy day at work and immediately got distracted by the clothes.
      I put a few things in my trolley and then did a shop.
      I paid and was about to get into my car when the security guard stopped me and asked me to come back in.
      I did and they took me upstairs.
      I was mortified and said I forgot to scan the clothes and a conditioner, 5 items.
      I know its unacceptable but I was distracted and Initially hadn’t really planned to use scan and shop.
      No excuse.
      I offered to pay for the goods but the manager said it was too late.
      He looked at the CCTV and because I didn’t try to scan the items he was phoning the police.
      The cost of the items was about £40.
      I was crying at this point and told them I was a nurse, just coming from work and I could get struck off.
      They rang the police anyway and they came and issued me with a community resolution notice, which goes off my record in a year.
      I feel terrible. I have to declare this to my employer and NMC.
      They kept me in a room on my own with 4 staff and have banned me from all stores.
      The police said if I didn’t do the community order I would go to court and they would refer me to the PPS.
      I’m so stressed,
      can u appeal this or should I just accept it?
      Thanks for reading 
      • 16 replies

Non payment of invoice - web development

Recommended Posts

I am an IT contractor with my own Ltd company.

I started building web software for a client 2.5 years ago (lets call it Product 1).

There was never any written contract between us.


I would go in every month, demo what I'd built in the previous month, discuss what my client wanted in the following month, and get an invoice paid for £3000.

As I already have other clients I work for during the day, I worked on the stuff on evenings and weekends.

It was extra income for my company, rather than my main income.

Product 1 has been live for over 2 years, and my client has many of his customers using it.

I'd go as far as to say the software is now the backbone of his company.

In April, he asked me if I wanted to form a new company to build a Product 2, loosely based on Product 1.

I agreed and did 12-18 hour days throughout May on Product 2 (and some Product 1) in May, for which he paid me the standard £3000.

I estimate that at my standard day rate I did 9-12k's worth of work that month.

That was the last invoice I got paid,

During June and July I received many phone calls and emails off both my client, members of his staff and even his customers requesting work, which I then did.

There must be over 100 emails during this period.

I put in a £3k invoice for June at the end of June, and was planning to invoice for July now.

The company never got created.

We had a disagreement on how the company would work regarding salaries.

He then told me he was going to form a new company building Product 2 with another IT consultant.

He agreed verbally at that point to pay my 3k per month for June and July and still use me for support and maintenance going forward.

Yesterday he told me he is no longer paying me for June and July.

He used a throwaway comment I made about "sometimes work ends up being quicker than it was estimated at".

I currently host both sites in my hosting account, although Product 1 is paid for by his company credit card.

Product 2 is paid by my credit card.

He has no access to the hosting environment.

He owns the domain names for both sites.

I sent him an email last night demanding payment for June and July.

I laid out everything I have said above, and stated at the bottom that if payment was not made, I would immediately stop support and maintenance of the sites, and take any other action I deemed fit (both software and otherwise), after legal advice.

Today I received a letter from his solicitor stating the his client disagreed with my account, and that the last paragraph constitutes blackmail under Section 21 of the Theft Act 1968.

That's a bit heavy.

I have done 2 months worth of work for no payment, been removed from the potential new company I did all the extra effort for, and am now being told I am blackmailing him.

In reality, if I do not get paid then MY company has losses.

Also, Product 2 hosting is being paid for with my credit card, and both products are reliant on external services that I also pay for.

The last paragraph is not blackmail, but simply me trying to avoid further losses by having to support and maintain a site and pay for external services without recompense from my client.

I am then thinking I need to tackle the situation in 2 different ways.

Firstly - the unpaid work - I can go through MCOL and use all the emails sent to me requesting m to do work through June and July as evidence.


- what happens in future

- I can offer to zip up and export the sites to him for a fixed one-off fee, which will be at my day rate for the amount of work required.

He can then take this and give it to another developer to host, install, support and maintain, I don't think he realises that another developer picking it up will take months and cost him more to pay that other person that he owes me.

The other option I can give him is that I continue supporting it for a new negotiated monthly fee, and then his problems disappear.

I just want anyone's advice on whether I'm doing the right thing.

The blackmail thing concerns me, and I am up against a solicitor here.

If I explain that the statement was not blackmail but me avoiding my own future losses, will that be ok?

And if I give my client the options to pay me to export the site, or carry on supporting it myself for a new fee, then do you feel that would be seen as me being reasonable if it escalated?

Share this post

Link to post
Share on other sites

Hi Calibra,


In para 4 above you say, "he asked me if I wanted to form a new company to build a Product 2".  Were you involved at all in the company itself like a director or employee, or just in helping him form HIS new company and assisting with IT?


This is a lesson for future clients - have a written contact setting out at least the basics of the arrangements with your clients including hourly, daily or monthly rates, the services you offer in return, etc.


Given the threat from the solicitor re blackmail, I hope others will comment but sol'rs can be very quick to make scary accusations on their client's behalf !

We could do with some help from you

                                                                PLEASE HELP US TO KEEP THIS SITE RUNNING



                                            Have we helped you ...?  Please Donate button to the Consumer Action Group


Please give something if you can. We all give our time free of charge but the site has bills to pay.


Thanks !:-)

Share this post

Link to post
Share on other sites

There is still no new company. It was an idea, and we discussed equity share etc. I did the work on the product based on that equity share. Once the work was done, he used it for his other company. And then decided to not form the new company with me after a disagreement.


I guess there's not much I can do about that. Just chalk it off. Even though I don't really understand why HE owns the software and not me? I put much more of my professional time into it than he paid me for it.


However, the June and July work - where him and his staff have asked me to do work via email, and there is evidence I have done that work, I am hoping that is something I am able to claim for via MCOL. The history of 2.5 years of work for him, all paid the same amount every month. Along with over 100 emails sent to me over the last 2 months. Surely a court wouldn't expect me to do that work for free?


Regarding the blackmail issue if anyone qualified is able to let me know where I stand I'd be very grateful.

Edited by calibra

Share this post

Link to post
Share on other sites

I don't have much time to give a full response to this but in terms of the blackmail, you shouldn't worry. Blackmail requires at least the element of dishonesty and I'm amazed that frankly he has a solicitor who is prepared to make these kinds of threats.


apart from the fact that the way you describe things it says to me as if you were in a partnership and therefore you each own part of the general effort, I also find myself asking who owns the intellectual property in the work you created

Share this post

Link to post
Share on other sites

you also haven't told us what the value is of this dispute. This is a very important factor to know. Although you could bring a county court claim it seems to me that from what I understand so far, that this could easily go beyond the scope of the small claims limit of £10,000 .

also I think the issue of who owns the intellectual property is extremely important and you may well find that you are holding a trump card that they don't yet understand.

I wouldn't start firing off letters yet until we have a full understanding of what is happening.




Share this post

Link to post
Share on other sites

And finally, I hope you don't mind me saying that I find it rather reckless to be doing this kind of work of this kind of value without any kind of written agreement. Especially this kind of work.

Share this post

Link to post
Share on other sites

Topic moved to General Legal Issues Forum.

We could do with some help from you.



 Have we helped you ...?         Please Donate button to the Consumer Action Group The National Consumer Service


If you want advice on your thread please PM me a link to your thread

Share this post

Link to post
Share on other sites

I’d be inclined to write saying that you have no intent to extract an unreasonable sum under duress, but that you are entitled to payment for the work you have done.


Ask them to set out, in writing:

a) what they believe you are owed for the work so far, and

b) the basis on which they intend to pay you for future work.


if they come back with something unreasonable (for either / both) you can point that out as the reason why you can’t do any further work, and that you are happy for a court to decide if the contractual dispute can’t be otherwise resolved.

Share this post

Link to post
Share on other sites

once again, before firing off letters I would come back here and engage with this thread and let us know exactly what the situation is so that it can be properly discussed and understood

Share this post

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 Caggers

    No registered users viewing this page.

  • Have we helped you ...?

  • Create New...