Bad Debts

digzy

I apologise if I've posted in the wrong section, but I feel personally ripped off.I own a small business and I have a number of clients who owe me various sums of money from 40 to 200 euro.I'm told to forget a legal route due to expenses but these all add up to close to 3000 euro.I'd appreciate any advice.I'd also like to rule out the 'viper' as a debt collector!!

pebbles21

Ring each and everyone of them every day and dont stop ringing them until they pay you,and eventually they will get sick of you ringing them and pay up

scudzilla

Tell them that you will take them to court for the debt owed, even though you won't. Offer them to pay off in 2/3 instalments, telling them that by doing this they'll be stopping court action. Sure you'd get 75% back, which is better than the 0% you currently have.
As soon as they have made an arrangement to pay, chase them up on it

dh0661

digzy wrote: »

I apologise if I've posted in the wrong section, but I feel personally ripped off.I own a small business and I have a number of clients who owe me various sums of money from 40 to 200 euro.I'm told to forget a legal route due to expenses but these all add up to close to 3000 euro.I'd appreciate any advice.I'd also like to rule out the 'viper' as a debt collector!!

Ask your solicitor to send them a registered letter, requesting payment. I assume that you have signed confirmation of supply etc.

IMO that's the first step to let your clients know that you are serious about getting back the money you are owed.

You should really speak to your competitors, previous and present, (I presume that you are not supplying them) they possibly have been or on the list to get stung.

BLACKLIST CLIENTS THAT DONT PAY

TheInquisitor

Registered letters cost E100 each sohardly worth sending them to recover such small sums. If you can comeone embassass them by advertising the fact locally that they have outstanding debts with you. Don't bother ringing them its easy to fob someone off on the phone, make the visit in person and dont leave without payment

dubscribe

For debts less than Euro 2,000, you can claim through the Small Claims Court and it only costs I think about Euro 15 to file the paperwork. Not worth it for the small debts but certainly worth it when you are talking hundreds of euros. Check out online.

billybigunz

dubscribe wrote: »

For debts less than Euro 2,000, you can claim through the Small Claims Court and it only costs I think about Euro 15 to file the paperwork. Not worth it for the small debts but certainly worth it when you are talking hundreds of euros. Check out online.

No you can't.

ejmaztec

billybigunz wrote: »

No you can't.

Yes, I believe that it still only helps consumers with problems.

It's a great shame that commercial debts aren't covered, like they are in the UK Small Claims set up.

I would imagine that most "small" debtors know full well that someone isn't going to take them to court, and they're quite happy to get away with it.

Then there are the cases where sums in the thousands are involved. Although these probably do end up in court, the "penniless" debtor manages to swing it and pays peanuts over a long period of time.

The commercial debt system is a disaster, and is heavily weighted in favour of the debt-dodging sneaky bastards of society.

digzy

I always see in regional papers of cases where people fill up with petrol/diesel and drive off and then end up in court.Is it the cops or the petrol station who pursue these thiefs? Then again these people just drive off where as my ar**holes commit to pay(next week!!).Then conviently their phones get turned off each time we ring.I'm seriously thinking of putting up a "wall of shame" on the window for joe public. is this a breach of consumer confiedentiality tho?

billybigunz

digzy wrote: »

I always see in regional papers of cases where people fill up with petrol/diesel and drive off and then end up in court.Is it the cops or the petrol station who pursue these thiefs? Then again these people just drive off where as my ar**holes commit to pay(next week!!).Then conviently their phones get turned off each time we ring.I'm seriously thinking of putting up a "wall of shame" on the window for joe public. is this a breach of consumer confiedentiality tho?

They are criminal cases.

A wall of shame is a good idea if any other communication fails.

91011

You can go through the small claims procedure for business to business debts of under €2000. It was introduced from january 15th this year and it is a hell of a service.

I've used it twice and got paid twice for people who would not pay for the previous 12 months! I have 4 other people who simply won't pay (I know they can afford to) and their debts will be going the same way.

Debts must be business to business. Any person as a registered business, registered sole trader or operating any form of business whether formally registered or not is considered a business to business debt.

What they won't allow is business to consumer debts. So if say you were a window comapny looking for payment off a private customer, it would not be permitted.

Oryx

We had a supplier who used to send a business newsletter monthly with each statement. A chatty thing, just to promote familiarity, friendly business etc. But he did threaten to name his defaulting debtors in this newsletter if they refused to pay. Seemed to work well for him.

Otherwise if you want to keep this in house, think about your toughest creditors, the ones you pay first. Think of how they encourage you to pay your bills.. . Usually it involves letters of increasing severity, and incessant phone calls. Do this to the people who owe you money. Be a niggle they need to be rid of.

There are other debt collection agencies (not the viper) who charge a commission to collect your debt, but dont use muscly heavies to do it.

ejmaztec

91011 wrote: »

You can go through the small claims procedure for business to business debts of under €2000. It was introduced from january 15th this year and it is a hell of a service.

I've used it twice and got paid twice for people who would not pay for the previous 12 months! I have 4 other people who simply won't pay (I know they can afford to) and their debts will be going the same way.

Debts must be business to business. Any person as a registered business, registered sole trader or operating any form of business whether formally registered or not is considered a business to business debt.

What they won't allow is business to consumer debts. So if say you were a window comapny looking for payment off a private customer, it would not be permitted.

I missed that and obviously haven't been keeping up with the programme:eek:, but they should have gone the extra distance and included all debts. I know a lot of businesses that would avail of that, given the opportunity.

91011

ejmaztec wrote: »

but they should have gone the extra distance and included all debts. I know a lot of businesses that would avail of that, given the opportunity.

If they did, the service would be overrun with claims in the current market.

Bosshogg

pebbles21 wrote: »

Ring each and everyone of them every day and dont stop ringing them until they pay you,and eventually they will get sick of you ringing them and pay up

I totally sympathise here since I was/am getting the same treatment until I said no give without the magic words... "here's the money"

I'm with Pebbles on this one... Also call and say "I'm in the area now", "when can you have it?" and "what can you afford to pay me now". You did the work and it's undisputed now they must pay for the time so don't feel bad about dogging them for your money. Same @$$holes are going out drinking every weekend so don't worry about it.


Let them know that you're going out of business and thinking of signing on the dole because of this bs and push the guilt back on to them.

Good luck and keep at them.

jimoc

Bosshogg wrote: »

Let them know that you're going out of business and thinking of signing on the dole because of this bs and push the guilt back on to them.

Considering the sort of people the OP is dealing with their only though will be
'Good, I won't have to pay at all then'

Personally I think the idea of a newsletter with the defaulters names on it is a brilliant idea.
Just ring all the people that owe you money and ask them if they would like their names removed before you send it out, if they call your bluff then go ahead and do it.

looksee

I was lucky when I was running a small business that I only had two bad debts. What I did have was people who did not pay until 90 days, even though we had agreed 30 days. And even then there were a number of occasions I had to go and just stand in the office/ reception, getting in the way, until someone gave me a cheque. I developed a very good line in amiably saying why I was there and then hanging around chatting, mentioning every now and again why I was there, until I got paid.

There is a very singleminded line of excuses...the accountant hasn't done those accounts yet (he probably hadn't been paid )...the boss is out and he is the only one who can write a cheque...there's a cheque for you but it hasn't been signed yet...and of course - it was sent out yesterday. Trouble is, while you are in people's offices you are not working productively, so the small cheques are not worth chasing, but they still add up.

lil_pip

digzy wrote: »

I always see in regional papers of cases where people fill up with petrol/diesel and drive off and then end up in court.Is it the cops or the petrol station who pursue these thiefs? Then again these people just drive off where as my ar**holes commit to pay(next week!!).Then conviently their phones get turned off each time we ring.I'm seriously thinking of putting up a "wall of shame" on the window for joe public. is this a breach of consumer confiedentiality tho?

a wall of shame is a fantastic idea,if i got a letter saying cough up the money you owe me, id throw it in the bin,but if i got a letter telling me i would be on the wall of shame i would have your cash back to you within the day i got the letter.do it,its a brilliant idea.

jimoc

Anyone know the legal implications of setting up a website where people can post lists of who owes them money?

For example,

Joe Bloggs Ltd owes Mary Jones Inc. €100 since April 20th 2009 for painting his house.

I cant see much wrong with it, its stating facts only, no slander or libel implications and no personal details.
Soon as the person pays up, they get removed.

We could call it www.wallofshame.com

Mr. Presentable

91011 wrote: »

You can go through the small claims procedure for business to business debts of under €2000. It was introduced from january 15th this year and it is a hell of a service.

I've used it twice and got paid twice for people who would not pay for the previous 12 months! I have 4 other people who simply won't pay (I know they can afford to) and their debts will be going the same way.

Debts must be business to business. Any person as a registered business, registered sole trader or operating any form of business whether formally registered or not is considered a business to business debt.

What they won't allow is business to consumer debts. So if say you were a window comapny looking for payment off a private customer, it would not be permitted.

Can you clarify this?

From citizensinformation.ie

From Monday 11 January 2010 businesses involved in disputes with other businesses can use the Small Claims Court. Up to now the court has only been available to consumers.

The aim of the Small Claims Court procedure is to provide an inexpensive, fast and easy way to resolve disputes without the need to employ a solicitor. The service is provided in your local District Court office and the application fee is €15.

To avail of the Small Claims Court procedure your business must have purchased goods or services from someone selling them in the course of business. You cannot make claims in respect of debts