Alpine

We work as a small supplier to a larger business. Clearly their business is having a few problems as they are issuing bouncing cheques. Anybody know where the law stands on this? Is it fraud?

Diablo

It is only an offence if the cheques are issued in the full knowledge that they will not clear.

To be fraud you have to prove intent.

It is, however, evidence of Insolvency as defined by Section 123 of the Insolvency Act 1986.

D

Diablo

How much are the cheques they are bouncing for?

D

Alpine

5-10k.. does this make a difference?

Diablo

Nope, but if its too low, courts won't entertain winding up action.

Personally, I'd get your solicitor onto it as soon as possible and go down the winding up route.

Not very friendly, but then neither is bouncing a cheque and its your best likelyhood of getting to the top of the que and getting paid before your customer (inevitably) fails.

D

ps - need any help/advice email me offline - this is what I do for a living.

MarkO

Slightly unrelated, but if the company is just pissing about and isn't actually going bankrupt, take a look at www.payontime.co.uk for info about statutory late-payment charges you can apply.

Alpine

Cheers gentlemen, most appreciated