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
(text/plain)