Problem getting paid - my options

golfman

I have an outstanding bill for €300 + VAT from one of my customers. This bill has been oustanding since October and it is not looking like it is going to be paid. There is no dispute over the invoice. The customer is aware he received my service and must pay for it - he is just claiming he hasn't got the money to pay me.

Weekly emails, letters and phone calls are just hitting deaf ears. I have turned up at their offices and have been fobbed off with excuse after excuse. Umpteen final demands have been issued and ignored.

With the amount being so low is there any point in getting a sollicitor involved? Is this something I can claim through the small claims court? I'd like to hear of anyone's experiences in resolving similar matters.

What makes things worse is that I have a feeling they'll be closing the doors in a couple of months time. Will I just be added to the list of creditors? How do I ensure I am on this list?

I know the sums involved might seem negligible to some of you but, quite frankly, I need every penny I can get at the moment. Any help/advise much appreciated.

dbran

Hi

Too low for a solicitor to get involved with. Small claims court is not applicable for non payment of invoices.

Regards

Dbran

Pot Noodle =

Stand outside there premises with a placard that should embarrass them a bit and might pay to get rid of you

Pot Noodle =

IBTL

Wile E. Coyote

The first thing you've done wrong is issue 'Umpteen final demands', by doing this you've shown him that you are not willing to take it further. A final demand should be exactly what it says.

By law you are entitled to claim interest on all overdue balances. This is currently 7% above the main ECB rate so start charging that on your invoice.

Good article here:
http://newsweaver.ie/ernst/e_article000096360.cfm

Do your terms and conditions state that you are entitled to pass on legal fees associated with recovering the cost of any outstanding balance? If so have your solicitor issue an initial warning letter advising your customer that you are taking legal proceedings unless the balance is paid immediatly. They could also include an estimate of the costs so it might scare your customer into paying up before the bill gets too high.

Alternatively there are debt collection companies that will chase the debt for you but I have no idea of how much they charge. I think it's generally a % of the amount recovered.

golfman

Wile E. Coyote wrote: »

The first thing you've done wrong is issue 'Umpteen final demands', by doing this you've shown him that you are not willing to take it further. A final demand should be exactly what it says.

By law you are entitled to claim interest on all overdue balances. This is currently 7% above the main ECB rate so start charging that on your invoice.

Good article here:
http://newsweaver.ie/ernst/e_article000096360.cfm

Do your terms and conditions state that you are entitled to pass on legal fees associated with recovering the cost of any outstanding balance? If so have your solicitor issue an initial warning letter advising your customer that you are taking legal proceedings unless the balance is paid immediatly. They could also include an estimate of the costs so it might scare your customer into paying up before the bill gets too high.

Alternatively there are debt collection companies that will chase the debt for you but I have no idea of how much they charge. I think it's generally a % of the amount recovered.

I don't have that written in the terms and conditions unfortunately. I have spoken to them this week and told them I will be starting legal proceedings as I've given them enough chances to pay up. I don't think they give a s**t to be honest.

Wile E. Coyote

You won't need to have it in your t's & c's for the interest so I'd work it out and start charging that straight away anyway. You may not get it but if you don't ask you don't get.

If your determind your not going to write this off just yet then I would still contact your solicitor, an ititial letter will probably cost you about €35. Or go the route of calling in a debt collection agency to chase it. You'll probably end up having to take a hit on some of the debt for the recovery but it's better than writing off the whole lot without a fight.

I know it's unlikely seeing as it was last October but is it possible to take back the goods that you sold?

You also need to get your terms and conditions clearly set out on the back of your invoices saying what you can and will do to recover outstanding debts.

golfman

Wile E. Coyote wrote: »

I know it's unlikely seeing as it was last October but is it possible to take back the goods that you sold?

I took some 360 degree virtual tours for an estate agent. Although there is an end product which he has received and I could take back, my time and the service I offered can not be taken back and that is why I need paying. The virtual tours I did for him would be worthless to me.

Debt collection agency might be the way forward.

ghosttown

Try the interest on invoice route first. You'd be amazed how some people react when they see their debt increasing, you may go to the top of the pile....
He who shouts loudest etc.

Another thing which may work, but you have to be careful, is do you know any current suppliers who offer him credit ? You have to make out you are in a position of power, unfortunate but true.......

Pot Noodle =

Factor your debt like Bibbi or equivalent

John368

Golfman

Actually, you have done all the right things.

Not going to a solicitor will save you a lot of money. Not going to the Small Claims Court will save you a morning in your good suit in court and the court fee. The judge finding in your favour will not change the situation at all - you will still have to get them to pay up. In fact I think it could make it worst as you have to appoint a court appointed debt collector as far as I know instead of just any debt collector and that will be more expensive.

If they go into adminstration, then you will probably get something. As far as I know you do not have to do anything other than contact the Administrator when one is appointed. You certainly cannot do anything before that as you could face a libel suit for spreading romours about the financial situation of the firm.

Hold tight and keep your ear to the ground and just keep on sending your invoice every month (it only costs the price of a 2nd class stamp or email each month) and you will probably get something. Spend your time and effort on looking at ways of reducing the risk of it happening again. Anyone in business will get this situation happening throughout their business career. It is just a case of minimising the amout of times it happens.

John

golfman

Well, just to update...... A friendly boards member pm'd me the details of a company that successfully chased a similar debt for him. I contacted the company and within 3 emails I have now got the ball rolling. Very friendly, helpful and swift acting with a promise of an update within 10 days.

I'll update this as I know more and if successful I promise to be his best advert! If not successful, I'm no worse off, its on a "no win no fee" basis. No harm in trying.......

dormant_co_acc

Wile E. Coyote wrote: »

By law you are entitled to claim interest on all overdue balances. This is currently 7% above the main ECB rate so start charging that on your invoice.

+1

I think if more people took advantage of this, more debtors might cough up when they see there is a real, tangible cost involved in fobbing off their creditors.

golfman

I would just like to update this as I have had a successful outcome and in this climate I think we should shout about it when someone does a good job!

I was given the details of Paul Nolan of AR Solutions and can only say good things about my experience. He has chased this for the past 4 months, has given me regular updates and successfully chased up my debt for me. I would recommend him to anyone that finds themselves in a similar situation to mine. In my head, I'd almost written off the debt so when the cheque arrived, AND cleared, it was a pleasant surprise. Here are his details.

Paul Nolan
AR Solutions
Landline: 00353 (0)1 8056030
Fax : 00353 (0)1 8056032
Mobile: 00353 (0)86 8562236
paulnolan@arsolutions.ie
www.arsolutions.ie


On a side note, if dealing with estate agents in Navan, beware of the agent "you'd recommend to a friend"

dormant_co_acc

Hi Golfman

Congratulations on a successful outcome here. I think I may give Paul a call myself. My problem with debt collectors is that they often never come back with updates and they have to be chased. That doesn't seem to be your experience here which is refreshing.

Well done again.

John368

Golfman

Glad things worked out well for you. Good to get an update - much appreciated. .

John