Lateral Thinking Successfully Recovers Debt

A well known central London florist who was seeking to recover £15K of debt from one of their clients called on the expertise of Dorset law firm and debt recovery specialist Humphries Kirk.

The client’s cheque bounced and the attempted CHAPS transfer had a typographical error and did not go through. A myriad of excuses came from the debtor.

Humphries Kirk spotted that the cheque was signed by a Director whose name was illegible. Humphries Kirk identified all of the Directors of the company and wrote to them at their home addresses pointing out that to sign a cheque in these circumstances was a breach of the Bills and Exchange Act 1888 and could even have criminal consequences for deception.

The debt was paid by BACS transfer 24 hours later.

Humphries Kirk’s Senior Commercial Partner Mr James Selby Bennett said “A cheque is a bill of exchange which is highly regulated in law and breach of the relevant law can have very serious consequences for the signatory. I am pleased that in this case these consequences did not need to be explored”.

If you need help recovering a debt then contact the debt recovery team on 01202 715815.

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