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Stopped cheque

  • 21-05-2010 10:40am
    #1
    Mr. Presentable
    Closed Accounts Posts: 9,496 ✭✭✭


    What action can you take when a customer buys services from you, pays by cheque and subsequently contact his bank to stop payment?


Comments

  • #2
    Dr.Silly
    Closed Accounts Posts: 1,759 ✭✭✭Dr.Silly


    Have you contacted the company and asked them why they stopped the cheque ?


  • #3
    Mr. Presentable
    Closed Accounts Posts: 9,496 ✭✭✭Mr. Presentable


    Thanks for the reply. The reason for stopping the cheque is unimportant, but I'll give it anyway.

    We agreed costs for work prior to the work being done. The customer has a poor credit history with us, so was asked to agree to pay upon job completion. This was done by cheque. Once the job is done and the engineer has left they decide the costs are not appropriate to the work and stop the cheque.


  • #4
    Dr.Silly
    Closed Accounts Posts: 1,759 ✭✭✭Dr.Silly


    nipplenuts wrote: »
    Thanks for the reply. The reason for stopping the cheque is unimportant, but I'll give it anyway.

    We agreed costs for work prior to the work being done. The customer has a poor credit history with us, so was asked to agree to pay upon job completion. This was done by cheque. Once the job is done and the engineer has left they decide the costs are not appropriate to the work and stop the cheque.

    So the reason the cheque is stopped is VERY important.
    Did you have a contract or any writing confirming what services and at what cost this would be provided at ?

    Edit: The reason I'm saying it's VERY important is in the case it gets legal further down the road, I didn't mean to sound like a know-it-all


  • #5
    Mr. Presentable
    Closed Accounts Posts: 9,496 ✭✭✭Mr. Presentable


    Of course. There is a signed, costed worksheet from the engineer agreed by the customer.

    To my original question. Regardless of why, what is a good procedure when a customer stops a cheque? Can it be treated as fraud as in the case of a bounced one?


  • #6
    martinn123
    Registered Users, Registered Users 2 Posts: 2,300 ✭✭✭martinn123


    nipplenuts wrote: »

    To my original question. Regardless of why, what is a good procedure when a customer stops a cheque? Can it be treated as fraud as in the case of a bounced one?

    As I understand it a signed cheque is an acknowledgment of a debt, its not fraud, but a civil matter, best addressed by a solr.

    If it comes to it the court should accept the cheque as proof of the debt.

    I am not a solr,so please treat this as my opinion only


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  • #7
    kenbrady
    Closed Accounts Posts: 404 ✭✭kenbrady


    nipplenuts wrote: »
    To my original question. Regardless of why, what is a good procedure when a customer stops a cheque? Can it be treated as fraud as in the case of a bounced one?
    Why is everything.
    To prove fraud, you would have to prove that they knowingly sent a cheque that would not be paid out, cancelled/bounced.
    Your only option is to sort it out with the customer.
    You can go legal if you want, but it will cost you and take a long time.
    Even if you get through the legal process and win. There is no guarantee the customer will pay anything.


  • #8
    91011
    Closed Accounts Posts: 1,383 ✭✭✭91011


    martinn123 wrote: »
    As I understand it a signed cheque is an acknowledgment of a debt, its not fraud, but a civil matter, best addressed by a solr.

    If it comes to it the court should accept the cheque as proof of the debt.

    I am not a solr,so please treat this as my opinion only

    In the casse of a cheque bouncing it would be a civil matter as the person who wrote the cheque could claim that he wrote it in good faith and circumstances caused the cheque to be returned.

    In the case where a cheque has been stopped for no reason, it could be argued that the person went out of their way to obtain the product . service using a fradulent means of payment.

    A quick chat to your local garda station could give you amunition to threaten a compalint to fraud squad.


  • #9
    AndyJB
    Closed Accounts Posts: 177 ✭✭AndyJB


    Thanks for the reply. The reason for stopping the cheque is unimportant, but I'll give it anyway.

    This is very important!
    We agreed costs for work prior to the work being done. The customer has a poor credit history with us, so was asked to agree to pay upon job completion. This was done by cheque. Once the job is done and the engineer has left they decide the costs are not appropriate to the work and stop the cheque.

    Morning,
    I'm not a legal eagle so you should get some real legal advice, but I've encountered this problem before. So here's some questions for you.

    1) Have you spoken to the customer in question and what did they say exactly? Always take notes of conversations you have with them.

    2) Were there any issues raised by you/customer while your engineer was on site? Were they resolved to customers satisfaction?

    3) What value range is the payment in? 100's, 1000's or 10,000's+?

    4) Can the job/equipment be easily removed from their site? Are you needed to maintain this or other service/equipment of theirs?

    5) How is the customers business structured? Sole trader, limited co or plc?

    6) You mentioned he has a bad record with you. I presume he's done this before, how did you solve prior issues? Or did you?

    7) Can you sell/license technique you installed for problem customer into their competitors or other users?

    Not knowing any of the above answers it's impossible to offer any sort of relevant advice. FYI unless its a sum over 4-6k it may well cost you your profit margin to chase it down. Better off negotiating a payment.

    Also not knowing your Ts & Cs: I'd advise you immediately change your terms and conditions of business. State that prior to starting any project, clients must pay 50% in advance and as project progresses to pre-agreed stages staged payments of 10% must be made. Final 20% payable on completion/sign off.

    Some people may say that above Ts & Cs will cost them business but what use is a bouncing cheque to anyone, it won't pay your wage bill. Staged payments will help prevent chancers.

    Best of luck.


  • #10
    antoinolachtnai
    Registered Users, Registered Users 2 Posts: 9,815 ✭✭✭antoinolachtnai


    There are no T+Cs that are going to protect you if you are going to negotiate a settlement in an instance like this. He has put it up to you. If the facts are as you state them, this is a straightforward a case as you will ever have against a debtor disputing a bill. If you aren't prepared to go to law with the guy on this, you never will, and he will never pay you because he knows you won't.

    I know it is hard to turn away sales, but if this guy has a problem with paying, and isn't prepared to pay up front, why do you do any more business with him? The more business you do with him, the more money you will lose.


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