mike enriquez wrote:
>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
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>
I worked in the field of medical collections (primarily going after
insurance companies, not individuals) for roughly 20 years. Much of my
experience, I believe, translates into this arena. Some basic observations-
1.) Your claim to your money is contractual in nature. It is as strong
or as weak as the agreement entered into when your work began. Did you
have a written agreement that clearly stipulated the amount and terms of
payment?
2.) Don't turn what may be a misunderstanding into visceral opposition.
Whether you feel that way or not, it is best to approach the other party
in a friendly and conciliatory manner, at least in the early stages.
"Dear blah, I have not received your check for $ in payment for the
services rendered on thus and such a date per our agreement. Please call
me at ___-___-____ at your earliest opportunity to discuss. It is my
hope that we can resolve this in a friendly and cooperative manner" is
more likely to result in payment, as long as the other party is not a
complete ass. Occasionally the other party will prove to be a complete
ass, but it is best not to get there prematurely.
Non-payment of a debt can be due to an oversight or clerical error, or
financial difficulties, just as it can be the result of bad faith. If
you just assume that the other party is acting in bad faith, and get
hardcore with them prematurely, you turn a misunderstanding or an
unfortunate circumstance into an all-out fight in which the other party
will not pay you simply because you angered and insulted them.
Affording the other party courtesy and respect will often open the door
to negotiation and a mutually agreeable resolution. Perhaps your client
is in bad straits, and really doesn't have the money right now? Wouldn't
you like to be the first one paid when he does get the money? If you
jump to conclusions and take adverse actions in lieu of sincere and good
faith efforts to resolve the situation, you may be insuring that you
will be the last one paid.
Collection agencies, IMO, are not a great way to go. Not only do they
take a huge share of any recovery, but with few exceptions they conduct
themselves in the most objectionable and counter-productive manner,
engaging in bullying, harassment and other counterproductive (and
illegal) tactics.
In summary, friendly, fair, firm and persistent is the ticket to
consistent success.
PS, You did say that the client seems to be getting ready to "cut and
run." What, exactly do you mean? If you are saying that you think he/she
will move and leave no forwarding address, that is a special situation
in which the services of a skip tracer may be needed.
--
Lee Einer
Dos Manos Jewelry
http://www.dosmanosjewelry.com
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