Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

By Mali2012
#308463 I was working for a door to door catalogue selling company and have a debt of just over £600. Just a few weeks later after I started I was almost out of pocket. As I am having financial difficulties, I can't pay the remaining outstanding balance.
I didn't sign the sales agent's agreement with the company, but lately they are threatening me with legal action in order to recover the outstanding balance.
I read the agreement, but clause 9.10 states, I quote: "The first order from the Sales Agent hereunder will only become binding upon the Sales Agent who will only then become liable to the Purchase Cost of the products delivered to him/her once the Company has received a copy of this Agreement signed by the Sales Agent and the products in question have been delivered to the Sales Agent."
The question is, can the company take me to court even if I didn't sign the Sales Agent Agreement with them?
Please could anyone help?
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By TalbotWoods
#308473 Can I ask how you ended up with a debt of £600 is this perchance the money from sale you had made on their behalf, as the answer to this will indicate the validity of the agreement and advice we can suggest.

By Mali2012
#308483 Hi TalbotWoods, thanks for the quick reply.
Yes, this is from sales. I actually ordered the products from the company, then I delivered them to my customers; I had 25% commission on sales and only worked for them for a few weeks. The company asked me a couple of times to return the signed agreement, which I didn't. I wanted to see if it works out, if it is worth doing it before signing the agreement.
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By TalbotWoods
#308493 If this is money that is purely commission, and you have failed to sign the agreement then yes they can go legal, as until it is signed you may find you are not legally entitled to keep the commission from the sales.

However, if you have handed across all the customers monies due to the company on time, without any other deductions, but less any that you have retained in line with the agreement (such as commission) then, they will be hard places to enforce this legally.

Now the nasty, and there is no simple way of saying this, but if the £600 is customers money that should be paid to the company, then yes they can go legal, as you have retained money paid by customers in good faith, which you have then failed to pass on. This will then cross from being a civil matter to being a criminal matter.
By Mali2012
#308503 I don't think I was clear enough. I was the person who ordered the products from the company. The company is called Betterware and it works in a similar way such as Kleeneze and Avon.
I went out and put out through people's door catalogues. Those who anted to place an order, they placed the order to me not to the company.
Let's say my customers (not Betterware's customers) ordered from me different products which I, then, ordered these products from Betterware. For example, let's say my orders from my customers were for £1000. I then ordered these products from Betterware. Once I received the products from Betterware, I delivered my customers their order. I then retained 25% commission from the £1000 and paid Betterware £750.
By Mali2012
#308513 Hi TalbotWoods

Bellow is a copy of the letter I received from the Company:

I am writing in connection with the outstanding debt as detailed above, as previous attempts to collect the balance by Wescot Financial Services have proved unsuccessful.

Accordingly, within the next 14 days you must respond to this letter by either:

1. Sending a cheque to us for the full amount made payable to Betterware Limited.

2. Writing to us by email, fax or post providing full details of any queries or dispute to all or part of the claim. If your query concerns only part of the claim, please ensure you enclose payment for the undisputed sum;

3. If you are unable to make payment in full, you must write to us admitting the claim and providing your reasonable proposals for payments for us to consider.

In the event you require debt advice, free independent advice and assistance can be obtained from organisations including those listed below:

National Debtline 0808 8084 000

Consumer Credit Counselling Service 0800 1381 111

Citizens Advice Bureau

Unless you respond by 10 October 2012, court proceedings will be issued for the recovery of the said sum together with interest, court fees and any solicitor’s costs as fixed or assessed by the court without any further notice to you.

Please note that the registration of a Decree issued by the Sheriff Court will affect your creditworthiness
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By TalbotWoods
#308523 They will be able to proceed to court, as from what you have said this has occurred since 2006.

The date is significant, prior to the Consumer Credit Act 2006, they would have had to have had to have a signed agreement (as was required under the CCA1974) but since the 2006 version they only need to show that you took the goods or services, which they may well be able to do in that they will be able to produce your order, properly a signed delivery note and other records, such as any payment you have made to them. (this is called probability of provision of services)

No matter how you look at this, as it falls under the CCA06, it is highly unlikely you will not get a Decree judgement (or CCJ depending on the version of law they are using).

The letter they have sent you does conform with notifications required under that act.

As you have also strongly inferred that you have other financial issues it will be worth talking to one of the debt organisation that cover Scotland, and these are:

PayPlan: Is a national organisation with approaching 20 years of experience in dealing with all kinds of financial situations, no matter how bad they are.
Their advice and help starts with a simple phone call to 0800 280 2816

Money Advice Scotland: They are the national umbrella organisation which promotes the development of free, independent, impartial and confidential debt advice. 0141 572 0237

NDL: Is an organisation that advises you on solutions that are available to you, you can contact them on 0808 808 4000

CCCS Is an organisation that advises you on available solutions with your financial problems. You can contact them on 0800 138 1111