We are a small charity and when we started all of our fundraising was organised by an advertising agency. They produced our magazine and our appeals, they dealt with the printers, list brokers, copywriters etc. and they invoiced me for the appeal so that I only had to pay them, not the printers etc.
I only ever dealt with the advertising agency, I never had any dealing with the various suppliers.
About a year ago I moved to another agency because of high costs.
I recently received a demand from one of the suppliers who I had never heard of or dealt with for a large outstanding bill going back 2 years.
I told them that I only ever dealt with the agency but they said the agency ignored their request for payment, so I had to pay.
They are now threatening me with debt collectors and legal action, but my point is that if someone turned up on your doorstep that you had never heard of before, had never dealt with, and knew nothing about, demanding money, would you pay them?
Any advice on what I should do would be welcome, and also any advice on how to deal with threats coming from these debt collectors.
Thank you
Chloe.
Demands
Hi, Chloe
Howard mentioned Citizens Advice - they usually only help individuals (and they are incredibly busy with debt cases at the moment!!!) but you might find a Money Adviser who can help you.
The paper trail is very important here. If you can demonstrate that you paid the former agent for all the work they commissioned on your behalf, you can send the claimant back to them.
As a Charity, you cannot simply pay out because somebody demands that you do - the onus is on them to demonstrate that the debt is legally yours.
From what you said, I fear you may not have had a contract with the agency, and this is a textbook case of why such a contract is necessary!
However, on the basis of what you have said, it would be extremely difficult for the supplier to prove a contractual obligation for you to pay this bill. Request the evidence from them, check that you have indeed paid all the bills of which you are aware, and stick to your guns.
e-mail me off-list if you like (gerry@26-01.com)- I'm not a legal person, but I can talk you through the issues from a Charity perspective.
Cheers
Gerry
Gerry Beldon FInstF
Director, 26-01 CIC
www.26-01.com
Check list
Obviously it's difficult to offer any certain advice without knowing about your relationship with the agency you worked with, but as a start:
- does the supplier have any legal right to approach you for payment, i.e. have you signed a contract with them?
- did your contract with the advertising agency clearly state that they would act as your agents and indemnify you against third party claims?
- check the documentation you have for the job in question to prove that you made payment to the ad agency in lieu of the work
(Sorry if this all sounds a bit simplistic but I would think the crux of the matter is whether you were ever contractually bound to pay suppliers)
As for the "threats", whilst tempting to ignore them it's probably best to have a simple holding letter.
Hope that helps.
Martin Sheehan
Alzheimer's Society
Citizens' Advice?
What an unpleasant situation to be in.
Some possible avenues, although I don't really know:
* Citizens' Advice Bureau
* Local chamber of commerce
* Local Business Link
and perhaps LawWorks:
http://www.lawworks.org.uk/?id=not_for_profits
Good luck!