Need a collection agency
- Thread starter dylan61
- Start date
I once had a client who didn't want to pay me. He gave me every excuse under the sun (they always do). Finally, I told him that I was going to take him to small claims court. He called me screaming and cursing at me. I remained calm and basically said that all he had to do was pay me. He cursed some more but seeing that I wasn't going to back down, he paid me that day.
I am a creditor to a lot of people out there so when they start being evasive and not paying i take this procedure.
1. Send letter giving a friendly reminder.
2. Send a firmer letter and mention the possibility of further costs incurred.
3. Send final demand letter charging them £20 for their default.
4. Send court summons from the small claims court.
5. Enforce court judgement by signing the warrant of execution.
Remember it does not pay to be soft.
1. Send letter giving a friendly reminder.
2. Send a firmer letter and mention the possibility of further costs incurred.
3. Send final demand letter charging them £20 for their default.
4. Send court summons from the small claims court.
5. Enforce court judgement by signing the warrant of execution.
Remember it does not pay to be soft.
I guess I'm at step 3 right now. The only fear I have of taking this particular client to small claims court is the fact that the client happens to be a law firm. I'm afraid they would be able to defend themselves in so many ways it would make my head spin. A collection agency seems to be more impartial in this case than a court of law.
Thanks for the help. I am definitely going to take the approach of being firm and not backing down.
Thanks for the help. I am definitely going to take the approach of being firm and not backing down.
dylan61 said:
I wouldn't let the fact that they are a law firm intimidate you (in fact, they might be counting on that). If you are in the right, and you can clearly show you did a service for them that they have not paid you for (and they don't have a good reason for not paying), I don't think any legal tricks will be able to bail them out.
I have invoices I've been sending them since March. I don't have a contract with them, but I was set up with them through a service that probably has record of the call. I think I'll contact the service and tell them what's happening. I just sent them a letter saying that I intend to take further action to collect the debt if they don't pay immediately. I guess now I'll start deciding on what that action is.
Be sure to send all communications with them as registered letters with a receipt, so they'll have to sign for it. You'll then have a record that they actually did receive your letter. Otherwise, they can claim they never got it.
Hi
I've been running my own business for a few years now and I've got a system for dealing with slow payers.
1) Find out who is the person who will authorise and send out the payment (usually some kind of account manager -- this is ideal because they have no personal stake in not paying)
2) Phone up and calmly remind them that the invoice is overdue and ask for a date that they expect that it will be resolved.
3) On the date that they give, assuming that it hasn't been paid, call the same person again and remind them that they promised that they'd give you a check for this date -- tell them that you will be in their area the next day and that you'll call in to collect a check personally.
(When they say that it can't be done for then, get them to give you a day within the next week when you can call in to collect the check.)
If they mess you about and won't commit, tell them that you are going to call in tomorrow anyway so that the matter can be resolved face to face. (Don't tell them what time)
4) Go to your wardrobe, pull out a three quarter length black leather jacket, black jeans, a clean white shirt and boots of some kind.
5) Go to their office and tell them that you're there to see the person you've been dealing with and that you're expected.
(If they say he's just gone out or busy, take a seat and say "That's OK, I'll wait -- I've got all day"
6) When you finally get to sit in front of the guy responsible, sit down and ask him to get you your check, tell him that you've got all day, so you don't mind waiting.
If he says he can't do it right now, tie him down to an exact time within the next forty-eight hours.
7) Tell him that you will be back on that day to collect the check.
8) If they still don't have the check the second time you turn up -- explain that he's made three personal promises to you that this was going to be sorted and he's let you down three times, so now you are going to sit there until he sorts it out.
The trick with this is to remain completely calm throughout the entire process -- if you loose your temper or start shouting they'll be within their rights to throw you out. If you are completely calm and you keep on making it their problem, it'll eventually be easier to pay you than have turning up at the office every few days.
If they start shouting, do not say anything and whatever you do don't stand up -- wait for them to run out of steam and when they've finished calmly say "OK, now you've got that out of your system, how would you like to resolve this?"
The "How would you like to resolve this?" question is the key to sorting this out. It's the question you ask at every step.
I've only ever had to go to step eight once -- most people cave at step five.
The truth is that slow payers don't respond to either phone calls or to threats of legal action, but I've yet to meet the person who won't pay if you make eye contact with them and ask for them to settle the matter. Simply because nobody wants creditors at their door.
If you get someone who won't pay even after you've done this, you don't threaten them with the small claims court, you get papers served on them.
Pity I'm so far away or I'd go do it for you -- I enjoy it, simply because people like that take pleasure in dicking people about, but generally fold like cheap deck chairs when a tattooed guy in a black leather jacket turns up and talks quietly to them.
I've been running my own business for a few years now and I've got a system for dealing with slow payers.
1) Find out who is the person who will authorise and send out the payment (usually some kind of account manager -- this is ideal because they have no personal stake in not paying)
2) Phone up and calmly remind them that the invoice is overdue and ask for a date that they expect that it will be resolved.
3) On the date that they give, assuming that it hasn't been paid, call the same person again and remind them that they promised that they'd give you a check for this date -- tell them that you will be in their area the next day and that you'll call in to collect a check personally.
(When they say that it can't be done for then, get them to give you a day within the next week when you can call in to collect the check.)
If they mess you about and won't commit, tell them that you are going to call in tomorrow anyway so that the matter can be resolved face to face. (Don't tell them what time)
4) Go to your wardrobe, pull out a three quarter length black leather jacket, black jeans, a clean white shirt and boots of some kind.
5) Go to their office and tell them that you're there to see the person you've been dealing with and that you're expected.
(If they say he's just gone out or busy, take a seat and say "That's OK, I'll wait -- I've got all day"
6) When you finally get to sit in front of the guy responsible, sit down and ask him to get you your check, tell him that you've got all day, so you don't mind waiting.
If he says he can't do it right now, tie him down to an exact time within the next forty-eight hours.
7) Tell him that you will be back on that day to collect the check.
8) If they still don't have the check the second time you turn up -- explain that he's made three personal promises to you that this was going to be sorted and he's let you down three times, so now you are going to sit there until he sorts it out.
The trick with this is to remain completely calm throughout the entire process -- if you loose your temper or start shouting they'll be within their rights to throw you out. If you are completely calm and you keep on making it their problem, it'll eventually be easier to pay you than have turning up at the office every few days.
If they start shouting, do not say anything and whatever you do don't stand up -- wait for them to run out of steam and when they've finished calmly say "OK, now you've got that out of your system, how would you like to resolve this?"
The "How would you like to resolve this?" question is the key to sorting this out. It's the question you ask at every step.
I've only ever had to go to step eight once -- most people cave at step five.
The truth is that slow payers don't respond to either phone calls or to threats of legal action, but I've yet to meet the person who won't pay if you make eye contact with them and ask for them to settle the matter. Simply because nobody wants creditors at their door.
If you get someone who won't pay even after you've done this, you don't threaten them with the small claims court, you get papers served on them.
Pity I'm so far away or I'd go do it for you -- I enjoy it, simply because people like that take pleasure in dicking people about, but generally fold like cheap deck chairs when a tattooed guy in a black leather jacket turns up and talks quietly to them.
Clive, I foresee a great demand for your services in New York.. although some of these characters have no address or even a driver's license! Such as Tod Scott Brody: http://todscottbrody-clients.blogspot.com
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Yeah. I've heard about this guy. I think that he's beyond shaming and a smart debt collection agency needs to be set on his ass.
If he was in London it would be so easy, but I don't know the right kind of people in New York.
My brother and I have both always been pretty good at this -- he once turned up at a bad debtors house 7 am on a Sunday morning, just to make the point that he wasn't going away.
That's easy in the UK because company directors have to list their home addresses with companies house. You pay a £25 search fee and you've got them.
With someone with criminal intent it's harder -- you've got less leverage. What makes my method work is that I'm dealing with people who are petty and incompetent, rather than outright dishonest.
If they really want this guy they need to use his greed to draw him into the open -- essentially a sting operation.
Actually there is another way -- working on the principle that there are only ten degrees of separation, I bet you could use Myspace to find someone who actually knows who he is and is prepared to give him up.
Clive, I would definitely pay you a comission if you wanted to be my collection agency. I've actually thought about how great it would be if a collection agency opened strictly to serve self-employed, freelance and small businesses and their collection methods were much like you described. For the most part, our business would be just fine if people would just start paying on time. We've done work for some pretty big companies that have waited 60 to 90 days to pay us. For a big corporation, I think that's just common practice. It sucks when it trickles down and starts hurting the "little guys" like me.
Maybe there's a movie idea here about a renegade collection agency that's here to help the common man.
Maybe there's a movie idea here about a renegade collection agency that's here to help the common man.
Sounds like an ideal Jack Black movie to me.
I used to have the same issues -- these days I expect 50% in advance and I give 14 days credit before applying charges.
The trick is to let the client know exactly what your terms are as you go in. To tell them face to face at the start how you operate and them put the info on the invoice.