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Ecommerce Forum

Reporting a customer to collections agent
So their lack of payment appears on their credit report

 7:40 am on Aug 7, 2008 (gmt 0)

Can this be done with purchases over the internet, or against a customer from a country other than your own?

I've come across some internet companies that stated in their terms of service that chargebacks are treated as non-payment and the transaction will be reported to collection agencies.

I have a few customers I would like to do this to. Curious as to how persuasive or actually "legal" it is.



 10:31 am on Aug 7, 2008 (gmt 0)

Don't know about how persuasive it would be but I don't doubt that it is legal, certainly within your own jurisdiction.


 1:21 pm on Aug 7, 2008 (gmt 0)

Sending accounts to a collection agency is very easy. Just search for "collection agency" in google and you'll find a ton. The nice part also is that most don't charge a fee unless they collect funds. Then they usually take 30% of the collected fee.

And yes, if you use a quality collection agency they can put the bill on the persons credit report.

The most important aspect is that you let the collection agency handle everything because there are very strict laws as to what you can and can't do or say.

I would just contact a collector and pass the guys info to them.


 3:31 pm on Aug 7, 2008 (gmt 0)

Yea but this could also open you up for a big lawsuit. Suppose I do a charge back against your company because I did't order the product as my CC was used but a hacker. Ok you get the charge back and then have a collection put on credit report this non payment. I go to get a loan and get turned down beacuse of this bad report brother your gonna get suied by me.

This is a dangerous fence your getting on just be ready for the storm if your travel down this road.


 7:19 pm on Aug 7, 2008 (gmt 0)

I doubt the hackers would be having the items shipped to the customer's billing address :)

I would imagine a requirement for this to work would be proof of delivery and/or signature confirmation - this would rule out the possibility of them trying to claim a hacker is at fault for the charge.

Do any of you currently utilize this method of battling fraudulent customers?


 8:11 pm on Aug 7, 2008 (gmt 0)

jake66 you didn't say that in your origional post why I said what I did, and farud orders they do use the correct billing and shipping but then do a sneaky and change the shipping delivery address while the package is in route. So what can happen you get the order ship to billing address, the shipping is diverted to another address, you get a chargeback from the customer you checked out and to send it to collections and....

I know what your talking about customers get the order and claim it was broken or didn't get the delivery, or something and then file a charge back.

Still fell your getting into some merky water and advise you to be very careful there.


 9:02 pm on Aug 7, 2008 (gmt 0)

Anyone can use a collection agent. For example, say someone owes us a past due bill of $1,000 (US dollars). I can turn it over to the collection company, and then they try to collect. IF they collect, they keep the larger percentage. This is merely a guess, but if they were to collect $1,000 owed, I would probably only see $250.00-$300.00, they would keep the rest. Sometimes it is better than nothing.


 5:09 am on Aug 8, 2008 (gmt 0)

Lightguy1, is it safe to assume you've utilized the service of a collection's agent? Have you ever had a customer come back years later and try to "sue you" or whatnot?

When it comes to fraudulent customers, I'd be happy to fork over 100% so as long as the fraudster doesn't get any benefit out of their illegal activities.

I am sure this varies agent to agent, but has anyone encountered a dollar amount that the agent wouldn't go after? (Is this something that's only workable for $1000+?)


 11:25 am on Aug 8, 2008 (gmt 0)

In the UK you cant place a listing on someones credit report without having received a county court judgement against them.

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