Dealing with Bad Debtors

seamusorogers

Hi

Does anyone know how to deal with an online company who are not paying debts and refuse to even discuss the situation?

They have consistently refused to take calls and return messages. They do not publish a postal address on their web site so I cannot even ask a legal representative to write to them! (Is this illegal?)

I have tried to get through to the owner but she refuses to answer the phone or return messages.

I am at my wits end so I would greatly value any suggestions? Does anyone else have issues like this one (I am sure that I am not alone in this as we sink further into recession)

Thanks

sceptre

I've edited out the name of the company and the name of the owner as this isn't the site on which to be publicly naming people that owe you money. However, you can do a search for the company name on the cro.ie website, which will give you the address of the company to aid your solicitor (having said that, your solicitor should already be aware of this).

mikemac

Viper Collection Agency

gnxx

Here is my general advice ( in 100 words or less ) :

Process ALL debtors in the same way.

Decide on a "timeline" and action to be taken. We send statements at 15 days, handwrite a note on a statement at 30 days, send a formal letter at 60 days and go legal after 100 days. About 4 years ago, 30% of our sales were over 90 days, now it is under 5%. I think a director writing a note on statements works.

Specifically in this case, you should look up their details at the CRO. I would personally sit in their office until I was paid. Get a solicitor if this doesn't work.

Remember to tell them that you are adding late payment of 0.026% per day to the invoice. Also tell them that once you get a solicitor, you will not settle without costs attached.

Finally --- keep good paperwork.

sceptre

Moved to Entrepreneurial & Business Management (which I think is the most appropriate place for it) from Politics

r0nanf

The process runs along these lines:

1. Debt collection Agency - if it fails start working your way through the list:
2. Solicitors letters
3. Sheriff
4. Examination Order
5. Judgement on Mortgage/Commital Order

It's something like this anyway - I've a few bad debtors at the moment at step 4 atm. Unfortunately if the Sheriff comes back with a "no goods of value" letter then the next step is court. At this point the Judge looks at an asset & income list for your debtor and decides what they can afford. If they renaig on this there is little you can do bar whack them with a commital (prison, if you can get it) or make a judgement on their mortgage (if they sell the house you get your account settled) provided there is equity in it. Ultimately as a creditor you have virtually no support.

seamusorogers

thank for your replies regarding <snip>. we haev a couple more debt avoiders.

does anybody know whether we can bypass the back and forthprocess of solicitors sending each other letters on our behalf (and therefore charging for the pleasure!) and is it possible to to a debt avoider/evader straight to court?

leitrim lad

im under 25 ,turn over 8 figures a year and im owed money from 2004/5/6/7/8/9, and in one case 1999, and thats why im grey haired already

solicitor wants to get barrister ,and a lorry load of money in the mean time i find these files have sat in solicitors office all this time along with deposit and nothing done, so i let rip on them and treaten to counter charge solicitor for waste of time, solicitor has all balls rolling on the mention of counter charge,

i will survive im owed close to 5m ,but i should have all collected by christmas or else solicitor will be kicking themself for signing a contract with me stating that all funds would be in or else they were liable plus interest @apr

now if i do a job or make a sale i get paid there and then or within a week, and i have a person who now looks after the wages and the invoices ,who is very shrude and cannot release money with out my signature, after a week you dont want this person knocking at your door

DubTony

To find out who a web site is registered to do a domain search on a site like www.register.ie. Ie domains can be searched on www.whois.ie.

You might get lucky and find an address, but I think most are registered to domain resellers. Having said that I'm sure they could be easily convinced to supply the billing address.

I'm curious, however. How do you find yourself doing business with a company you have no address details for? What business are you in?

seamusorogers

Hi TonyDub

I thought that I had replied this earlier but m PC crashed so I presume that my reply went with it then too!

Anyway, let me answer - why and how are we providing services to a company without knowing the business address?

Wen we started dealing with <snip>, they were based in a rented office in Ballyogan and I met the owner there. It all looked very legitimate. However, I (and the landlord of the said office) was in for a surprise. The owner of <snip> absconded, taking my money and a few months rent with her.

Of course, she has re-appeared, doing business as usual (if the moderator of this post would allow the full post, then you would see the name of the company).

Anyway, we have searched register.ie and the WHoIs directory. We have also go an address through the CRO site but it would appear this is incorrect information (possibly correct at the time of registering the company and web site).

So, I am at a loss (for the moment). I have found her Facebook account so I suppose that I could ask her friends around for tea and we could discuss her business tactics.

I honestly just think that it is a shame that, as we are in an economically challenged time, that we have enough problems to deal with without having to battle with unscrupulous business people who are effectively hiding behind the recession and using it to renege on debts.

I found an interesting site that discusses this issue: debt-avoidance.com.

Heisenberg.

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