?????When a customer won't pay, What do you do??????

[77401]

What do you do when your customers don't pay, or their checks are no good?

I had a contractor refuse to give me my last check on a job even after the final inspection passed. He never returned my calls.
So here is what I did to get paid. PLEASE share your stories too!

I went back to the job site, where I had installed some wall lanterns on an exterior fence post controlled by a photo cell. I quickly removed the lantern & wirenutted the wires together.
As expected, at dark the customer called me & reported the photo cell was tripping the breaker & their den was dark.
I told Mr. Customer I warrant my work but only when paid in full. He said he had paid the G.C. & I should have been paid.

Minutes later, I get a call from the G.C. telling me to come pick up a check.
The next day I fix Mr. Homeowners lights and start to wait 3 months for the rubber check to clear.
Every day I call the bank to check the amount in his account & the day its good I race over to his bank as I only expect many other subs doing the exact same thing.

So what are your stories on collecting???
77401

 

[bdarnell]

Send them a 1099. When they call to ask what the heck this is all about, tell them that since they never paid for the work you did, they made money from you.

It'll get their attention.

 

[jeff43222]

Only had trouble once. A Realtor hired me to do work on a house she just sold to someone. The deal between the owner and the Realtor was that the Realtor would pay for the work. I did the work, homeowner was happy with it, Realtor didn't pay. I made several attempts over several weeks to get paid, only to get lame excuses in return. I finally set a deadline, Realtor ignored it, I filed a lawsuit the next day.

My lawyer suggested that I contact the homeowner and explain the situation. He was livid. He called Realtor and reamed her. I got my check the following week.

 

[macmikeman]

realtors - yuck.

 

[jeff43222]

I'd hesitate to paint all Realtors with a broad brush. I did a service upgrade for a Realtor last year, and she was happy enough with my work that she spread my name around the office. I wound up getting a fair amount of work just off her referral.

But in general, I prefer not to deal with them.

 

[goldstar]

Fortunately, I've never been beat for a large amount of money. The cost of using your lawyer to place a lien on the property becomes prohibitive when you're only dealing with hundreds of dollars. However, if you're up around $10K you can go for it and add interest each month you don't get paid. When your lawyer sends them a bill each month indicating how much they will have to pay when they try and sell their house their tone might change.

I don't know that I would go back onto the customers' property and remove anything. That could set you up for a lawsuit. However, some customers have gotten me irritated enough to swing by, one day when they're not at home, and remove their electric meter. But, the angel on my right shoulder won out over the devil on my left and didn't do it. So far in my life I've been sane in dealing with these types of customers but I dread that one day the gray matter in my brain is going to dry up and Lord only knows what I'll be capable of !!!

 

[hardworkingstiff]

goldstar speaks wisely.

You must remain in control of your emotions. It is easy to get so angry that you do something stupid.

 

[JohnE]

I've never had a customer flat out refuse to pay. A few slow payers who eventually paid. One slippery GC gave me the runaround (after 15 years of working for him). Tried to declare bancruptcy and transfer assets to another corporation. Ended up getting caught lying to a judge and everyone was paid in full with interest. :lol:

 

[77401]

One of my first jobs as an apprentice on a service truck, we showed up at the same time as another contractor. the Homeowner went with the other guy & my boss said to collect a service call fee. She refused to pay...Duh...
So the boss said to pull the meter & return it to the utility company for her.
Needless to say his pay checks started bouncing a few months later.

 

[charlie b]

All I can suggest is that you never do anything that would make a potential future court case go against you when the judge says, in shock, "YOU DID WHAT?????"

"This at least, said Imlac, is the present reward of virtuous conduct, that no unlucky consequence can oblige us to repent it."

Samuel Johnson, "The History of Rasselas, Prince of Abissinia." 1825

 

[tshea]

All I can suggest is that you never do anything that would make a potential future court case go against you when the judge says, in shock, "YOU DID WHAT?????"

I echo Charlie B.

You can be charged with theft. Now you have 2 problems!

Another option is to take the "customer" to small claims court. Here the maximum is $5000.

 

[goldstar]

Another option is to take the "customer" to small claims court. Here the maximum is $5000.

This is a good option if you have the time. Before you go to court make sure you have signed contracts, etc. and that all your ducks are in a row !!! Verbal or implied contracts won't hold up as well as those in writing.

 

[mtnelectrical]

My advice just wait for the system to work. It could take time or you might even loose completely the money but it saves you headaches, court dates and a lien would be something like a gift that you receive when you don't it. Personally I did something that I am not proud now to get paid, even though my lawyer says I shouldn't worry about it but I have to be in court, pay fees, etc, and the feel is not good at all. What you have to be is really wise to see red flags when you start a project. Sign contract, specified your schedule payments,change of orders and never start a job without getting paid as your contract says and if they give you an excuse for not payment just open your eyes, be alert and make decisions so you don't loose more money in labor or material. To all my colleagues just be patient when you face one of those who wants to benefit from your good faith. :x

 

[Oakey]

I had a GC stiff me for my last payment of $1345 last year for a kitchen/service claiming he was broke. Mind you that he got paid in full and all my inspections were complete. After many phone calls , promises and never ending billing statements (a year) I found a real hard nose collection lawyer who will take half of the money but now its principle not the amount (well sorta :lol: ). Mtnelectrical's advice is excellent and I try to screen ppl the best I can. I dont think I've ever met a contractor without an "I got stiffed" story. Good luck

 

[goldstar]

I've posted this story here before many years ago but it seems appropriate to bring it up again. A long time ago when I was a mere neophite, some electrical contractor friends of mine warned me never to hook up with a "track builder". They buy tracts of land intending to build houses, condos, etc. and your eyes get real big thinking about the potential $$$ you will make. They will open up for business today as ABC Builders, have you wiring houses and condos and always keep you 3, 4, or 5 houses behind in payment. Come the end of the project they close up shop, have you in the bag for $XXXXX.00 and open up the next day as XYZ Builders. No matter what you do, put liens on the project, go after them legally, etc. you will never get anywhere close to whatever money they owe you. Just a word to the wise and I think it's good advice.

 

[RampyElectric]

This is a tough topic. I once heard another contractor say "buy personal liability....$500 a year for a million in coverage, if they dont pay....go box their ears..."

As of yet I havent been burned. I'm lucky that the GCs I work with a good people..so far.

 

[tshea]

Another option is to take the "customer" to small claims court. Here the maximum is $5000.

This is a good option if you have the time.

I think you will make time to get your $5000.

Before you go to court make sure you have signed contracts, etc. and that all your ducks are in a row !!! Verbal or implied contracts won't hold up as well as those in writing.

Absolutely!

One other note: Even though you receive the judgemnet, it does not guarantee you the money. A slick customer can file bankruptcy and then you are out everything, unless you are a preferred creditor. Usually the mortgage company is first in line.

In some cases it's best to get an attorney to work for you.

True story: I had a mechanics lein on a property. The original owner sold it for cash. The new owner bought the lein too. They thought I was going to go away! I stuck my to guns, threatened to foreclose on the property, and was finally paid. Sometimes the system works!

 

[charlie tuna]

after twenty five years i can only remember about five or six problems like this and almost everyone of them were complete suprises to me!!! one of the first was a large residential remodel--fast track and the owner had a freind paying the subs with cash -- daily!!! our work was more involved than the other subs, so i just kept daily work tickets. as we finished the owner shows up and does not like anything!!! he pitches a fit and runs everybody off the job. now this house is on a private island with high security! i wrote him a few threatening letters -- but in the long run he got me for about 5k............. funny thing happened though --- his boat sank on new years eve -------42 foot sport fisherman!!!!!!!!!

i have used small claims court and it works - but as stated above - you have to have the documentation to prove your case. one guy claimed bankrupcy and i knew where he moved all his office equipment. the judge allowed me to pickup four computer systems at $500.00 each. i took the brand new ones!

and another company left their ups system behind and the building owner allowed us to claim it. and that worked out good because we made money on the unit plus got payed to install it...........