Non-paying customer

[Tom-N-Texas]

I had a good customer for over 2 years. The family lived in a NICE house (over $600,00 probably) and always paid their bills in a timely fashion. Well the husband got transfered to another state and on their last day here I happened to be mowing the lawn when the wife comes out and says "Leave me a bill and I will pay you after we get to Atlanta"

I had no reason to not believe her since she's always been a good, timely payer. Well it's now almost 3 months later and she refuses to pay. The amount is $160 (for the month). I communicate with her via e-mail (when she decides to respond) and the last thing that was said is that her husband insists they are paid up (which is lie).

My question is should I just let this go and chalk it up to experience or should I bother with filing a theft-of-services charge. I'm thinking court costs might eat up alot of that $160.....not to mention prolonged aggrevation and inconvenience.

Does anyone have experience with this sort of thing? I just don't know what I should do. And it's not really the money. I mow 165 lawns a week so the $160 aint gonna kill me....it's more the point....people should live up to their moral obligations and pay for what they use.

Another thing is I don't have a written contract with her. Any suggestions would be appreciated.

[riches139]

In your next email to her, let her know you're going to start collection procedures, whether you do or not. Explain to her that it will put a red flag on their credit rating.
You"ll probably get your money.

[Elwood]

Another thing is I don't have a written contract with her. Any suggestions would be appreciated.

I think a lesson is being learned. While $160 today is chump change, one day the damages could be a lot worse. A properly worded agreement will make them pay for attorney fees and court costs. After that, a collections attorney will handle everything at THEIR expense.

I would write it off as a lesson learned.

[Stephen M.]

It may be a hard learned lesson, but if it was owed to me, I wouldn't have a problem with sending it to small claims court. In fact, I am there at least one to two times per year on the average. You will have no problem establishing that you had an agreement, verbal or written doesn't matter, since you have a 2 year track record with these people. It wouldn't take much to sell your end of the story with proof of billing. The end result is that you will get your $160, plus court costs, plus money spent on US mail certified mail with a return receipt. That's your money, so don't take it lying down with a boot mark on your face!!

Since they moved out of state, chances are they will pay rather than come back to fight it. Even if they chose to ignore you, with a court judgement against them, you can then report it to a credit bureau to be attched to their credit history.

I am always surprised that the advise is usually for somebody to screw the money and chalk it up to experience. Say What? That never works for one of your own creditors, so why don't you treat yourself like a Real Business and use the same methods of reporting bad payers and get your money? Satisfaction, even at half price with a bill collector, is screwing up somebody's credit history because they thought that you aren't a real business!! NOT.

And YES, it is worth the aggervation to go to small claims court. There is only one catch to court or reporting to a credit bureau, you have to be a bonafide, legal business yourself.

[grassguy]

If they do not show up to court, a body attachment will be issued and their bail will be what is owed to you. Be sure to include late charges and court costs.

[mh1314]

Send them a detailed bill, showing mow dates, payments etc, which should show the outstanding mows. If they refuse to pay after seeing it spelled out, they're just using distance to refuse payment. Check with the county tax assessor and see if they still own the house where you mowed. If so consider attaching a mechanics lien. It will cost, but you can recover your expenses when they have to have the lien removed to sell the property.

[cfclawns]

if you send snail mail certify it with a return receipt so you know they got it. i dont care if it is 50.00 get your money. look at it this way 160.00 x 10 nonpaying customers thats 1600.00 if you let them not pay how many more do you let not pay you to chaulk up as lessoned learned. you will always run in to this occasionly no matter how good the customer is. do what you have to do and get your money it yours and you dont work for free good luck!

[Elwood]

Not sure about your state Stephen, but in IL, if you don't have in writing that the CLIENT pays court costs and attorney fees, I have to.

I have at times, for the principal of the matter alone, spent twice what was owed just to collect. Certain clients who, with their large mouth, would "advertise" that I took them to court to get paid was exactly the story that I wanted "on the street". While they are complaining about me being a hard ass, they are really making themselves look bad while discouraging others who might think about hiring me, then not paying. After a few hassles with crap like this, I came up with my own well worded contract/agreement, had my attorney look it over and now every client signs it.

If someone owe's me $10 and does not pay, it costs me NOTHING to get my simple $10. I just call my collections attorney, fax him the latest bill sent to the client and within a couple weeks, I get paid. Simple as that. In this case, I would guess that costs would exceed the profit left on the $160 owed, so it is a lesson learned no matter which way he chooses to proceed.

[Stephen M.]

Its similar in WA Elwood. As the plantiff in a recent court victory, the loser paid me my billing of $888.59 + $25 court fee + $4.42 registered mail fee for service of the summons. The loser was torked that he lost at his "game". The sweeter victory over getting my money is that his lose is now recorded and attached to his credit history.

I had a "verbal contract" with the jerk because he didn't want to sign a written one. So what's part of his defense?, that he didn't have a signed contract!! The judge saw thru his B.S.

Like Elwood, I like it when the loser bad mouths me for taking them to court. It just establishes that I'm a smart businessman and it re enforces that the loser looks really stupid.

[dave_n_mulberry]

If they do not show up to court, a body attachment will be issued and their bail will be what is owed to you. Be sure to include late charges and court costs.

around here small claims court issues a judgement to the party that shows up. I don't know of any court that arrest someone for not showing up in small claims court. debtors prison has been outlawed for a long time.

[grassguy]

In Indiana, if they don't show up, a verdict is awarded to the party that shows up. That is correct, but by not showing up and/or failing to pay, they will issue what is called a body attachment. Their bail is then what the amount sued for was. I checked with the clerk's office at the courthouse last month. It is not debtors prison.

[perenlawn]

The best defense is a good offense. I am in total agreement w/Elwood... For future reference get a written contractual agreement (attorney drawn) with every single customer for your future clients. Once they have signed that agreement, they are legally bound and it protects you as well as your client.

It just makes good business sense to have a properly worded contract spelling out payment issues, your services and all the implications of what you are providing to the customer. This will eliminate (or greatly reduce) the likelihood of an occurence of this sort from happening in the future. We do not do business w/customers who do not want to sign a contract. If they refuse to sign an agreement, it is usually a flag to us that there may be an underlying problem.

I would still seek to collect... sending your client copies of statements from past billing, copies of their payments received and a written document of the conversation that took place between you and the client's wife and send this all "certified" mail. Then, after that time, contact them via phone and if they still refuse to pay, perhaps ask an attorney to send a letter to "threaten" action if they are still refusing to pay. Sometimes a well-drafted letter from an attorney can be enough of a motivator in and of itself.

Best of luck. These situations are never easy, but like I said, the best defense is a good offense.

Perenlawn

[MGO]

Get your money.......

What lesson is there to be learned...???? THey were good payers for 2 years and all of a sudden they move and don;t pay???? Hard to see that one coming.

[Elwood]

The lesson learned is to use written agreements with ALL clients to protect yourself from instances like this.

Just call your collections attorney, fax him your last statement for that client and get a check soon after. Simple as that. I don't have to call the client and deal with their "run around" stories and crap. I set the rules at the beginning of the game and they are followed until the end. Pretty cut and dry. I am to busy to chase my hard earned money from a few deadbeats. I just pick up the phone and excersise the rules that the CLIENT agreed to play by.

[steve-o]

i got one right now who is from pakistan and moving back this week. i am still waiting for my $$$ in the mail. they leave this week so i will go by there and see what happens. if they won't pay maybe i will treat them like daniel berg. oh i forgot we don't treat people like that here. we just take stupid pictures but they get to keep their heads.