Collections 90+days past due

[bradleyelectric]

Why spend time working for customers that will make you waist resources chasing your money? Next time this clown calls looking for work to be done tell him you are to busy and give him the number of someone that is on his level and spend your time constructively. He is costing you more money than he is worth chasing your tail. How do people make out in small claims in your area when they don't have a contract?

 

[Brian J.]

I know, it almost feels demoralizing, we have a very large ($$$$$) 90+ day A/R. I also know a few EC's who carry over 1 million in 90+ day A/R. It is the sick nature of the business and these are people/businesses/institutions that are taking advantage of your business. Just stay foccused on your collections.

 

[480sparky]

If you're gonna go to war, you don't do so with just one branch of the military. You bring the Army, Navy, Marines and Air Force along. Why limit yourself to one avenue?

Call him every day, at least once. If he doesn't answer, keep calling. 4 or 5 times a day if need be. Send him registered letters once a week. If a lein doesn't work, go to small claims. If there's still no payment, contact a collection agency. If that doesn't work, call a lawyer. Report all this to the credit bureaus.

Just let him know that all this is being added to the bill. >>>>That information should have at least been on the invoice.<<<<

If you keep popping up on his radar, maybe he'll just pay you off to get you out of his hair so he can go scam someone else.

 

[Greg Swartz]

If you're gonna go to war, you don't do so with just one branch of the military. You bring the Army, Navy, Marines and Air Force along. Why limit yourself to one avenue?

Call him every day, at least once. If he doesn't answer, keep calling. 4 or 5 times a day if need be. Send him registered letters once a week. If a lein doesn't work, go to small claims. If there's still no payment, contact a collection agency. If that doesn't work, call a lawyer. Report all this to the credit bureaus.

Just let him know that all this is being added to the bill. >>>>That information should have at least been on the invoice.<<<<

If you keep popping up on his radar, maybe he'll just pay you off to get you out of his hair so he can go scam someone else.

I have to agree with 480 here... use all available avenues:

I have a pre-paid legal membership. I can get a letter from a lawyer out in a few days... and it's part of the package. That attracts attention FAST.

Another route is a collection agency. They do NOT have to come out of your balance. Just ask them to collect on top of the balance. CoFace is the last company I used. However, they gave up on one of my cases. $800 just wasn't enough for the hassle the customer gave them!

And as you indicated: Small Claims

Also, phone calls... every day. Multiple times a day. Sometimes I tell people I will be by to pick up a check. I let them know that they needed me at a certain place on a certain day, now they are jerking me around?

Another guy I know, has a HUGE guy show up in a black tux, driving a very nice black car, wearing a rose on his tux. Guy comes and knocks on the person's door... comes directly to the person's house. Speaks in a very deep voice. Gives them the rose and tells them he is here to collect... People take it like they are going to die if they don't pay! He says it has worked every time. And the guy puts his price ON TOP of the bill... nice!

Just some ideas,
Greg

 

[Kdog76]

Thanks for all the great input here. I will not give up on this guy - Yesterday I thought about not calling him anymore - but after reading these posts, I'm not afraid to hound him...Calling him every day, a few times...If that doesn't do it, I will file small claims. I will have that paperwork filled out today. I know it has to be signed off by a notory agent, and then served on him personally... I don't know if I should send him just a copy first to show I mean it, or just jump in and get it filed. Also, I have an attorney friend that can help me through the lien process.
Then I will find a local attorney that specializes in collections for construction type accounts, and have him help me draft up a decent contract for future work.

 

[480sparky]

.... I don't know if I should send him just a copy first to show I mean it, or just jump in and get it filed. Also.......

Don't use threats. Use force. File it.

He's a landlord, isn't he? He does the same things you're trying to do when someone doesn't pay their rent.

Yes, he may know the parallels between the two collection methods (his and yours), but his end is to either get the deadbeat renter to cough up or get evicted. Since the latter isn't an option for you, you just want him to pony up the dough.

If he's constantly late in paying up, then do you really want him as a customer, regardless of how much work you get?

 

[tshea]

At this point you probably cannot file a lien. Your best recourse is to call, tell him to pay now, or see you in court. Then file small claims. In WI the limit is $5000. You obviously fit this. It'll cost about $125 or so more which can be added to his invoice. Contcat your attorney. Sometimes the attornies don't like to mess with "small" amounts, but they will tell you "how to" do it.
After you get the judgement, file for his financials. He has 10 days to respond. If he doesn't file again as in Contempt of Court. He probably will not respond. At that time the court will file a bench warrant for him. If he gets stopped for speeding, he gets arrested until he provides you with paperwork. Know anybody on the Sheriff Dept?
Once you can get his account number, file for garnishment.
All this takes time and money. He knows it. Not only that, you can add all legal fees back onto his invoice--state law. Unfortunately you can add your time as a collector.
You may get paid as you walk into court. I have on several occassions!
The other scam is he may offer you "deal" if you drop everything. Say no and mean it.
Once you have a judgement, there's no guarranty getting paid. You just have a judgement. This means the court agrees with you that he owes you money.
BTW way "mechanics liens" are good for 2 years in WI and Small Clains judgements are good for 10 years. After those time frames you need to refile.
I have a lien on one landlord now. I'm going to force his hand by sending a letter (thru my attorney) that I will start foreclosure. The amount <$1000.
Sometimes it's the principle of the thing.
Good luck!
Tim
Good luck.

 

[Kdog76]

Just an update, the guy finally called back says the check will be in the mail today for a partial payment (about 1/3) with the rest to be paid in full after the 1st. I'll take the money to keep cash flow coming, and if he needs any work done in the mean time I will need past due paid in full as well as prepayment for the future work.
I didn't tell him I just finished filling out the small claims paperwork... I guess I'm a sucker for the money. BUT, lesson learned here - it will not happen again. I pinned him down on that the balance will be paid ON or BEFORE the first of Feb. If it's not - I'll file for the remainder balance. I'm sure some of you will not agree with this.
AND, all future work for this clown will be PREPAID.
My only other question is how to serve the papers - process servers? or do I serve him myself? And what about certified mail - does that count? Good questions for my attorney.

 

[480sparky]

Just an update, the guy finally called back says the check will be in the mail today for a partial payment (about 1/3) with the rest to be paid in full after the 1st. I'll take the money to keep cash flow coming, and if he needs any work done in the mean time I will need past due paid in full as well as prepayment for the future work.
I didn't tell him I just finished filling out the small claims paperwork... I guess I'm a sucker for the money. BUT, lesson learned here - it will not happen again. I pinned him down on that the balance will be paid ON or BEFORE the first of Feb. If it's not - I'll file for the remainder balance. I'm sure some of you will not agree with this.
AND, all future work for this clown will be PREPAID.

Go ahead and file. If his check doesn't clear, then you are still going to court for the full balance. If it does, then you can tell the judge that you received a partial payment in the middle of your collection attempt. The judgement will simply be reduced.

The fact that he sent you a check, for any amount, is admission that he owes you the money. He has now given you the biggest gun in your arsenal.