OT: Has anyone ever used a colletion agency?

Hello All,

Well, I've been in business about 16 months and it has finally happened, I got stiffed! Has anyone ever used a collection agency or the like to retrieve money from a client? If so, what are the Pro's/Con's, and any helpful info.

Thanks, Muggs

Reply to
Muggs
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Tell us a little more about your situation. How long have you gone without payment and have you gotten anything at all from this client? Has the client received all the services they requested and seemed happy with the product? What are your terms?

A little more info and maybe we can give you some idea's.

MB

Reply to
McBurger

You're NEVER going to believe this, but I just got an email from them. I wrote this post right after I made "one more" phone call to them, and after not getting a response from them in two and a half months, I got an email saying, yep you guessed it; "the checks in the mail".

This is great, because all that I was asking, was for some dialog (they weren't returning my phone calls).

Thanks for responding MB, Muggs

Reply to
Muggs

Yep -- need more info. I'd also be happy to see recommendations, as I'm in that situ myself. But the problem with collection agencies is that once they call someone and get "don't call me back" from them, there's not a lot they can do outside of sending letters. A letter from an attorney would be just as effective, if not more so. If the collection agency actually collects it would cost you a very substantial percentage, I'm sure. If a lawyer sends a letter it's not likely to cost even as much as $200 (if you're careful about asking up front), but of course that may or may not mean you collect anything.

Disclaimer -- I DON'T RECOMMEND YOU DO ANYTHING ILLEGAL . . . but If the people have just scammed you and don't have any ethical basis for not paying then are you ethically constrained to treat them fairly? You have to answer that for yourself, BUT some trivial demonstration of your ability to be scary might be in order. Can you "act"? Rent "Cape Fear" and watch Mr. DeNiro do his stuff. Be careful not to threaten overtly.

Reply to
Sporkman

I have not used one, but I my Dad ran a business out of the house for quite a few years. He had a client stiff him, and rather than pay a collection agency or a lawyer, he took them to small claims court. If you have all of the proof to show that they have not paid you, you can take them to court and get the money they owe you, plus the court costs.

Reply to
YouGoFirst

My dad had a couple collection agencies and so I know a bit about it, including collecting in my own business, which has rarely happened.

  1. If the amount is under the small claims court limits, that is the best route, but then you still have to collect. If the ex-client still won't pay, you get the Sheriff (with $s costs) to attach assets or bank accounts).

  1. If the amount is larger than small claims, you may still want to go that route because it is over quickly without a real need for a lawyer and may force the ex-client to want to pay to keep his credit record clear (his way of dragging out payables until the last minute).

  2. If it is large, you need to get a lawyers opinion of what the costs will be win or lose and the time, which can be extensive, and you probably need to find out whether there is any likelyhood of any funds being their to collect if you win. Often, only the lawyers win with bad people.

Bo

Reply to
Bo

You need to get Moose and Rocko to help your client find their wallet.

KM

Reply to
kmaren24

Taking another company to court is more often a bad idea than a good one. Been there and done it (time consuming and costly lesson) I would suggest finding other reasonable means to resolve the problem.

Kman

Reply to
Kman

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