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You can find the current article at its original source at https://www.theguardian.com/money/2019/jul/10/my-builder-is-hiding-behind-his-limited-company-status

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My builder is hiding behind his limited company status My builder is hiding behind his limited company status
(2 months later)
Update added on 19 September 2019: Since publication the county court judgment secured by the letter writer SD against the builder has been set aside by the court, meaning there is no extant court judgement to enforce. Therefore all references to the judgment in the article must be read in the light of the fact that the outcome of the case is yet to be determined.
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I have taken a builder to court over a botched roof installation. An independent surveyor concluded that it does not comply with building regulations or installation guidelines. I won by default and now have an £8,000 county court judgment (CCJ) against the company, SIN Building Services.I have taken a builder to court over a botched roof installation. An independent surveyor concluded that it does not comply with building regulations or installation guidelines. I won by default and now have an £8,000 county court judgment (CCJ) against the company, SIN Building Services.
It refuses to pay and as it is a limited company there seems little way to enforce it. There is no trading address to send bailiffs to and it has opened a new company to run accounts through.It refuses to pay and as it is a limited company there seems little way to enforce it. There is no trading address to send bailiffs to and it has opened a new company to run accounts through.
It is a member of the Federation of Master Builders, TradeMark and the Consumer Protection Association, all of whom say there is nothing they can do. They seem happy to represent members who don’t comply with building regulations or judgments. I am struggling to understand where the consumer’s rights come into the Consumer Rights Act when it cannot be enforced against limited companies and why the bodies claiming to regulate the industry seem to ignore the conduct of their members. Is there anything more I can do?SD, LondonIt is a member of the Federation of Master Builders, TradeMark and the Consumer Protection Association, all of whom say there is nothing they can do. They seem happy to represent members who don’t comply with building regulations or judgments. I am struggling to understand where the consumer’s rights come into the Consumer Rights Act when it cannot be enforced against limited companies and why the bodies claiming to regulate the industry seem to ignore the conduct of their members. Is there anything more I can do?SD, London
You have hit upon a major flaw in consumer protections, in that they only work when a company agrees to cooperate.You have hit upon a major flaw in consumer protections, in that they only work when a company agrees to cooperate.
Unscrupulous traders can breach a contract, ignore court orders and launch themselves as a new limited company to evade debts, and there’s very little customers can do.Unscrupulous traders can breach a contract, ignore court orders and launch themselves as a new limited company to evade debts, and there’s very little customers can do.
Aptly named, SIN is run by Sevdelin Nestorov and registered to an address in Croydon. He ignored the Observer’s requests for a comment but within days of my contact he renamed his company Lambdens.Aptly named, SIN is run by Sevdelin Nestorov and registered to an address in Croydon. He ignored the Observer’s requests for a comment but within days of my contact he renamed his company Lambdens.
The original website should have set alarm bells ringing. There is no company information on the home page and no contact address or number. What it does include is reassuring logos from the Consumer Protection Association, the Federation of Master Builders and Mybuilder.com.The original website should have set alarm bells ringing. There is no company information on the home page and no contact address or number. What it does include is reassuring logos from the Consumer Protection Association, the Federation of Master Builders and Mybuilder.com.
Mybuilder, which promises to connect householders with “exceptional builders” who have been individually evaluated, failed to respond to requests for a comment.Mybuilder, which promises to connect householders with “exceptional builders” who have been individually evaluated, failed to respond to requests for a comment.
The CPA says that it did not insure your contract. The FMB said its mediation service failed to achieve a resolution and it has expelled the company from its membership.The CPA says that it did not insure your contract. The FMB said its mediation service failed to achieve a resolution and it has expelled the company from its membership.
Unfortunately, not a lot can be done with regards to enforcing the CCJ against the limited company unless you risk losing more money than you stand to gain.Unfortunately, not a lot can be done with regards to enforcing the CCJ against the limited company unless you risk losing more money than you stand to gain.
The best you can hope for is that it triggers a winding-up order, which would freeze the company assets until they have been distributed to creditors, but you may find yourself at the back of a very long queue. If the company goes into voluntary liquidation and the business reappears under a new company number, you are stymied, according to Morgan Lloyd of DAS Law.The best you can hope for is that it triggers a winding-up order, which would freeze the company assets until they have been distributed to creditors, but you may find yourself at the back of a very long queue. If the company goes into voluntary liquidation and the business reappears under a new company number, you are stymied, according to Morgan Lloyd of DAS Law.
“Not a lot can be done with regards to enforcing the CCJ against the new company because your contract and the CCJ apply to the first trader,” he says.“Not a lot can be done with regards to enforcing the CCJ against the new company because your contract and the CCJ apply to the first trader,” he says.
If you need help email Anna Tims at your.problems@observer.co.uk or write to Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU. Include an address and phone number. Submission and publication are subject to our terms and conditionsIf you need help email Anna Tims at your.problems@observer.co.uk or write to Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU. Include an address and phone number. Submission and publication are subject to our terms and conditions
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