Hi JD, here is my thinking on this. I hired a collection agency and had to do most of the work myself. By law the agency can hold on to the money for 30 + days so then you have to try to collect from them. I finally had to go to the Banking Department to get them to make the collection agency release the funds over to me. The amount was over $6000. In one year I had 23 cases in Small Claims Court.My success rate was about 97% until the judges told me I was not going to win anymore cases. My ideas as a result are these: 1. You only get to send one registered letter so make it count. After the first letter people catch on and will refuse all future letters. So I would just go directly to small claims court and have a process server deliver your letter along with the court filing. I paid about $35 per service to a process server. 2. File a lien on the property where you did or delivered the work. You can get the forms at the Contractors Book Store on about 10th street and Jefferson. Liens work people don't like liens on their property and if they don't pay you the lien collects interest till paid. You have to renew the lien evey 7 years or else they expire. Remember the stories about the Maricopa County Attorney who had people put liens on his home for no reason other than they didn't like him. Easy to do and it works. The property owner has to go to court to contest the lien. Now they can explain why they didn't pay you. To avoid all the legal fuss this is what I do. For White Box computers I ask for cost of parts up front. People have no problem with this. So if they walk I have at least my cost covered. For Tech support I ask for a deposit on the work. If I don't know the person I ask for all fees up front. Just remind them that at the local hamburger joint they pay before they receive the hamburger. Or you can ask for a retainer up front and if you do monthly billing you deduct a small percentage from the retainer but never the whole amount until the final payment, then you credit their account. Be aware of this: when you ask for your money make your request and then "shut Up". Wait for them to speak. If you explain yourself you will end up on the short end. For some reason this always works. Finally if my client is a repeat customer I don't do any of this, because I have a history of their behavior. But if they change their behavior over to non payment I go quickly to small claims. The only problem with Small Claims Court is that if you win it doesn't mean you get your money. Some people will still not pay. But now you can record your judgement with the Recorders Office and it will be on their record. You will get paid if they want to purchase something on credit like a car or house. Or you can try to get the Sheriff to collect from their checking account. So always make copies of their checks so you know where they bank so if you win you can send Sheriff Joe to get your money from the bank. Some people will not like all this activity I just explain but some people will just not pay their bill, then it is up to you to collect your money. In Superior Court I have found that the courts don't like it if you have not tried to collect your money before you come to court. Which means that if you don't ask for your money due you then you give up your right to collect it. Finally get in the habit of asking for your money, keep records of your payment request and don't give up. Its your money, no need to give it up. A little background might be inorder to explain my experience on the subject. 1. My first big learning case was in Federal Court where I worked side by side my attorney. I acted as plaintiff and his assistant. I learn a lot in Federal Court where I sued a major Utility. 2. I serve on the Judical Review committee with a bunch of law professors in grad school. 3. I have been a member of Toastmaster for 23 years. Toastmaster is good training for any small business computer person. Join Toastmasters at the same time you study "DOS". Good luck to you and never, never give away money away unless you want to make a donation. Mike the newbie On Wed, 2005-04-13 at 22:48, JD wrote: > I have a client that is giving all the signs of someone about to cut and > run without paying for a bunch of work I've done for him. > Does anyone know of a good collection agency? > I'd ask on the other lists I'm on, but this guy is on those lists too. > > Thanks, > > JD > --------------------------------------------------- > PLUG-discuss mailing list - PLUG-discuss@lists.plug.phoenix.az.us > To subscribe, unsubscribe, or to change you mail settings: > http://lists.PLUG.phoenix.az.us/mailman/listinfo/plug-discuss > --------------------------------------------------- PLUG-discuss mailing list - PLUG-discuss@lists.plug.phoenix.az.us To subscribe, unsubscribe, or to change you mail settings: http://lists.PLUG.phoenix.az.us/mailman/listinfo/plug-discuss