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Forum Moderators: LifeinAsia
joined:June 27, 2000
How do you collect from them? I know this person will not pay up unless his credit report is impacted, so I want my claim on his credit report.
How do I do that?
1. Hire a lawyer. I've done that in the past. Usually they will just need to send the person a letter, or speak to them briefly to get the issue resolved. Be prepared, however. You will probably have to negotiate a settlement. Unless the person is very stubborn, or has a legitimite beef with you, they won't agree to a full payment. So, in addition to the legal fees, you will be getting less than 100% of the money owed.
2. Hire a collection agency. They'll take a HUGE chunk of the total amount owed (40 - 60%), but they're very good at getting the money.
It sucks that you have to go through this. It's unfortunately a part of business that we all must deal with, however.
So I'd either just write it off and move on (feel free to complain to the Better Business Bureau at least), or just send it to a collection agency if there was a good chance they could get anything of it at all, and it didn't cost me a lot of hassle.
I guess it depends how important the site is to the client. Sometimes a simple threat like this will put them in place and spare you legal action and related expenses.
undead - it depends what kind of situation you're in. Unfortunately one can't always write of 5k just like that.
But I rarely have to go for either ones. I always split jobs in small chunks over time and ask for 50 % up front for each steps. Less of a (temporary) loss this way.
It costed us about 15 k of legal expenses to use ironclad contract boilerplates. We never lost any collection with them.
The 'repo' suggestions made above are not very serious. They could lead to more troubles than anything else and justify him not paying you.
Well, you are pretty limited at this point, but since his credit report is his hot button, go to Dun & Bradstreet and pull up his credit number (I think you can still do that). Inform him you have his D&B number and will be reporting him in five days if a check isn't on your desk. To actually report him to D&B I think you have to open an account with them, (they used to have a small business plan that was about $100.00/year but that was 2-3 years ago) an account gets you a few free credit reports and you can turn in deadbeats.