Statutory demand secures recovery of £13,320 for an electrical firm

Posted in December 2014

County Electrical Services is family run business supplying commercial, domestic and industrial electrical installation and maintenance services throughout the West of England.

The challenge

County Electrical had been contracted by a facilities management company to carry out electrical rewires as part of the complete refurbishment of council housing stock with the work expected to last for 8 months. Initial payments were made on time and as agreed but soon slowed and by month four an outstanding balance had built up. County Electrical approached the situation in the correct manner by writing to and meeting with their customer to express their concerns and request payment as agreed. Promises of payment were made but not fulfilled and after giving notice and completing all of the individual projects they had started, County withdrew their services six months in to the contract. The outstanding balance included labour and materials costs and amounted to £13,320.

The recovery process

It was clear from the information supplied in our client’s instruction that the debtor had adopted an aggressive and dismissive approach to the situation in order to avoid payment. This was confirmed when we received no response to an Initial Demand letter or Final Demand letter and then made telephone contact with the Managing Director. It was only at this stage after failing to respond to our earlier requests to make contact, that the company raised a dispute. They claimed that County Electrical had not certified or registered many of the electrical installations with Building Control leading to them bringing in another contractor at additional expense.

As expected County Electrical were able to supply information that enabled us to refute the dispute claim. We presented the debtor with evidence supplied by NAPIT, County Electrical’s trade governing body and the councils for whom the worked had been carried out. The information presented showed that all of the installations had been certified correctly and on time, and Building Regulations Part P certificates had been issued by NAPIT and received by the councils.

The debtor was given a further 7 days to make payment and informed that a statutory demand would be issued at the end of the 7 day period and insolvency proceedings would follow. The debtor did not respond and a statutory demand was immediately served. We received a call from the company’s finance director 4 days later informing us that a bank transfer had been made to clear the outstanding balance including interest and costs.

The result

Issuing a statutory demand is not a step to be taken lightly and should only be considered in appropriate circumstances, however, as this case shows it can be a very powerful weapon in recovering a commercial debt.

Da Feefo


Ouch! There was a server error.
Retry »

Sending message...

Quick Contact

Send us a message and we will get back to you within an hour.

Spam Prevention Question

7 - 6 =

Latest Recoveries

  • May 26, 2020

    £2,955.17 recovered from a Telford based Carpet Retailer Company and paid to a Wolverhampton based CCTV Instalation Company just 3 days after we commenced action.

  • May 22, 2020

    Our client a Bournemouth based Commercial Cleaning Company received a free debt collection service following the recovery of £7,202.89 in 5 days from a Southampton based Business Centre.

  • May 21, 2020

    Advocate’s business debt collection service results in £6,954.77 being recovered from a Newcastle based Hotel and paid to a Gateshead based Painting Contractor 6 days followining our instruction.

  • May 20, 2020

    Advocate’s free debt collection agency secures payment of £12,040.12 in 7 days from a North West Local Authority on behalf of a Liverpool based Care Staffing Agency.

  • May 19, 2020

    £8,424.98 recovered from a Bristol based Construction Company within 72 hours on behalf of a Bristol Scaffolding Company.

Latest News