Large company trying to charge for loan equipment

[billy_79]

I run a small limited company, and in the past we've referred our clients onto another (much larger, huge international) company who supply products and services that accompany our own. Way back in 2011 we requested some loan/demo equipment from them to exhibit at a trade show.

 

The other day I got a letter from them saying that the loan was for a period of 1 month, and they are going to charge me a daily penalty rate for the period since (over 5 years!), unless I can prove that it was returned. The letter states (potentially misleadingly) that the value of the equipment is £1000, but it doesn't mention their 'penalty' charge rates . I don't even know exactly what their standard hire charge for the equipment is, but at a guess even that could work out at £4000 over 5 years.

 

Looking back at my records, I did sign their loan agreement, and it does mention the duration was one month (although I don't recall this being stipulated during our telephone conversations prior). It also mentions that late return may incur penalty charges at their daily rate. I also wrote to them a couple of days later to cancel, before any equipment was delivered to us.

 

Now, I've looked around and I can't find the equipment here, so I don't know if we ever received it, or if we did and then returned it. And if we did return it, I'm not going to be able to prove it - whatever delivery service we used (probably Royal Mail) isn't going to be able to supply proof of delivery for such a long time ago.

 

Does it seem acceptable/reasonable that they haven't mentioned anything about this for 5 years (after supposedly lending the equipment for just one month)? No requests for it's return, or advising that we are incurring 'penalty' charges. Even now, they still aren't saying how much they think we owe. It just seems like a fishing trip to get me to offer to return it now, which would presumably give them a case to charge us £1000's.

 

Where could they go with this next? If they go the legal route (small claims?), would they have a realistic prospect, given that they've sat on it in silence for 5 years? Presumably statute of limitations would stop them after 6 years?

[geoff1248]

The onus is on them to prove that you have had the goods. Ask them to provide proof of delivery to you such as a signed delivery receipt.

Let them do the work.

[SabreSheep]

Sadly Statute of limitations IS 6 years

 

Unless

 

You happen to reside in Scotland