Consideration has a welcome for all
Instead of three new printers and ink, cover for its first leasing payments plus a £10,000 donation and a free cancellation opt-out after 12 months, TMK got two occupied machines, worth at most £6,000, and is tied in to huge repayments for five years. So far it has return the favoured £8,300. Funding for the deal was provided by Grenke Leasing Ltd, part of German fund giant Grenke AG, which insists its role means it took no by in the terms of the deal PCS organised.
Although PCS has a registered sermon in Cambridge and is listed on Companies House as actively trading, Grenke has coiled its fire power on the charity in a bid to retrieve the hefty sum that it says represents its disbursement and profit.
But the grotesque tangle embroiling TMK is not unique.
Rather it is symptomatic of a weakened industry where injustice runs rampant exploiting small responsibility customers thanks to the way agreements and liabilities can be structured and managed, says hire out expert Chas Jordan of Fair Contract Associates.
Mr Jordan is now advising TMK as it fights for survival and says: “There are scads charities, schools and even councils out there trapped in very faulty value deals for equipment such as printers.
“Unfortunately staff are not perpetually wise to the pitfalls until it is too late.”
PCS contacted TMK last year, hint ating a deal laced with incentives that had helped other secondary organisations get better equipment.
After discussions the charity agreed.
TMK demands it was led to believe the deal contained a goodwill gesture from the printer maker, something that later proved to be untrue.
The Missing Kind’s helps are highly valued
Regarding the contracts he signed, Tom Gaskin for TMK said he agreed to the helpful one which confirmed PCS’s offer. He was assured it superseded any other.
Mr Gaskin puzzles a second contract with Grenke, completed he felt in a high-pressure car-boot sales situation with PCS, and he disputes the authenticity of his signature on it.
Grenke’s writ was served June when the humanitarianism was temporarily closed and struggling because of lockdown. But why only go after TMK?
“It’s regulative for lenders to have indemnity clauses in their contracts with the introducers,” elucidates Mr Jordan. “We proposed the cost is split fairly among all three people.”
Both Crusader and TMK have asked Grenke Leasing Ltd for any indemnity it coop ups, to date no document has been forthcoming.
Crusader has also tried to in PCS, so far without success.
“Grenke is purely a provider of funding to finance an bargain between hirer and supplier,” the company told Crusader.
“Grenke swallows no part in the negotiations and has no knowledge of them. It relies on the hirer [to perform] its own due diligence.
The Misinterpreting Kind’s services are highly valued
“It is inaccurate to suggest that Design Corporate Services was the agent of Grenke or that the lease was sold by System Corporate Services on behalf of Grenke.
“Grenke was not present during any discussions between The Young lady Kind and Plan Corporate Services and does not know what was said.
“The court dealings seek payment of all the payments due under the lease, which effectively consists of the figure Grenke paid Plan Corporate Services for the equipment and Grenke’s profit.
It desire be unfair on Grenke to expect it to suffer a loss as a consequence of negotiations to which it was not a bunch.
“Grenke’s solicitors repeatedly invited proposals for settlement but none were comprehended, and ultimately there was no option but to commence proceedings. Grenke views court accounts as a last resort. We are willing to engage in constructive and commercial negotiations unsurpassed to settlement proposals.”
But Jordan says the charity has already reached out to Grenke in search of one.
“We make yet to receive any response to an initial settlement proposal from August 4, a feedback to copy court papers on August 21 or to our letter regarding a mediation union on September 10, all of which have been ignored,” he responds.
“I am at a diminution to understand how one can communicate with Grenke Leasing Ltd. They could so undoubtedly pursue the people who caused the problem.”
Thousands benefit every year from TMK’s sustenance.
But the dispute has already had a devastating impact on the charity’s operations forcing it to cut helpless.
“It has taken a lot of time and resources preparing our defence, time we normally wish have spent on helping others,” says Gaskin.
The charity has adjusted its business plan and is trying to generate funds from other sources in a bid to look after its future.
“The threat is jeopardising all our efforts,” adds Gaskin. “If Grenke is rich we may have to close.”
For more about supporting the charity during this sensitive time, click here.