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Collection Agency
- Thread starter Rickey J
- Start date
CanuckSigns
Active Member
My experience with collection agencies is that they are a complete waste of time. We have send 3 debts to a few of the "you don't pay unless we win" type places, never saw a penny, I'm not even sure they did anything to be honest. they get 20% if they are successful, which when you think about it, isn't enough for them to give a c#&p about.
If you really want to persue, I would write up a letter of demand, outlining what they owe you, how long it's overdue and whatever proof you have that they ordered the product from you (PO's, emails etc.) and what you will do if they do not bring their account into good standing in 10 days.
For even more impact, get your lawyer to write it on his letterhead.
Have you tried contacting him? he may be having a hard time financially and is too proud to admit it, maybe you can offer an installment plan, it may not give you the sense of retaliation you are looking for, but you may end up getting paid.
If you really want to persue, I would write up a letter of demand, outlining what they owe you, how long it's overdue and whatever proof you have that they ordered the product from you (PO's, emails etc.) and what you will do if they do not bring their account into good standing in 10 days.
For even more impact, get your lawyer to write it on his letterhead.
Have you tried contacting him? he may be having a hard time financially and is too proud to admit it, maybe you can offer an installment plan, it may not give you the sense of retaliation you are looking for, but you may end up getting paid.
ChicagoGraphics
New Member
I use my attorney for all my collections, yes he takes a 3rd but I alway's get my money that's due to me. I guess it helps to that he's a jewish attorney.
Collection agencys are worthless
Collection agencys are worthless
showcase 66
New Member
Lawyer up. May only get a 60% of it but it is more effective than collections. That or take it to small claims.
Watch This!
http://vimeo.com/22053820
Watch This!
http://vimeo.com/22053820
qmr55
New Member
again lol
Christian @ 2CT Media
Active Member
Alexander Miller and Associates out of Texas collected $6500 for us from a DTG Printer manufacturer who decided they didn't want to pay their bills. Cost us 20% and it was settled in 2 weeks, got 100% of what we went after with no reduced settlement or anything.
The key to collection agencies is find one that is attorney based and has an escalation plan / time table. AMA will automatically take your claim to court if the debtor is non compliant or non responsive.
As for if $500 is worth a collection agency? If its a matter of principle and setting an example then yes, if its a matter of finances then no... you'll waste more time then its worth.
The key to collection agencies is find one that is attorney based and has an escalation plan / time table. AMA will automatically take your claim to court if the debtor is non compliant or non responsive.
As for if $500 is worth a collection agency? If its a matter of principle and setting an example then yes, if its a matter of finances then no... you'll waste more time then its worth.
Blaney
New Member
Repossessing a sign is a bad idea. Check your local laws before you remove a sign from a customer.
I added a paragraph to my contract that states if a bill is not paid and collection activity is needed, customer is responsible for attorney fees and court cost.
I worked a deal with an attonery friend of mine. If I have trouble getting paid, the attorney sends the customer a certified demand letter. There is something about getting a letter from an attorney that makes the customer want to pay. The letter has the amount they owe me plus an additional $50 for the attorney. 95% of the time, I get my money within 10 days of them getting the letter.
I added a paragraph to my contract that states if a bill is not paid and collection activity is needed, customer is responsible for attorney fees and court cost.
I worked a deal with an attonery friend of mine. If I have trouble getting paid, the attorney sends the customer a certified demand letter. There is something about getting a letter from an attorney that makes the customer want to pay. The letter has the amount they owe me plus an additional $50 for the attorney. 95% of the time, I get my money within 10 days of them getting the letter.
ProWraps
New Member
the attorney letter only works on people that are dumb enough to think that having it sent from an attorney means something more than you sending it yourself. it doesnt. and any savy business person will know this.
not trying to be negative nancy, but its true.
power is with the courts. if you feel you want to do what it takes to get the $500, small claims is your only option. and even at that, you will get a $500 judgement with zero money after that point. 99% chance the guy wont even show up to the court date.
keep in mind, even though it sucks, the full amount can be written off as bad business debt.
not trying to be negative nancy, but its true.
power is with the courts. if you feel you want to do what it takes to get the $500, small claims is your only option. and even at that, you will get a $500 judgement with zero money after that point. 99% chance the guy wont even show up to the court date.
keep in mind, even though it sucks, the full amount can be written off as bad business debt.
Christian @ 2CT Media
Active Member
Also the Fees assessed by a collection agency, attorney, and court fees can be written off as bad debt / fees associated with debts on your taxes also.
I hate PA for many reasons but PA is a great state in this regard. Once you have that judgement in hand. You can appoint their local police to visit the address of the defendant. They will make a list of asset items to be auctioned off to pay the judgement debt.
Yes their fees and stuff will eat up $500 pretty quick.
I've never had one go to auction but have had three where the cash was handed to the sheriffs office at time of inventory.
Your state may have something like this too.
Yes their fees and stuff will eat up $500 pretty quick.
I've never had one go to auction but have had three where the cash was handed to the sheriffs office at time of inventory.
Your state may have something like this too.
WildWestDesigns
Active Member
Not always the results that you want though. I recall the last time this discussion was on here there were more then a couple that mentioned negative experiences with the law when they, or someone they knew, tried to repo the sign for failure of payment.
Also, I know some of you have "colorful" contract language about emergency repairs. I know here in TN (and in Alabama), if you are going to have repo in your contract, it has to be explicitly stated as such. If it isn't, that repo is illegal.
FireSprint.com
Trade Only Screen & Digital Sign Printing
This might be considered harassment. Be careful.
We try to stay calm, pleasant and persistent. There are more aggressive actions that you can take but be careful not to chase good money after bad. I believe strongly in the 'energy' of a business. If you spend too much time on collections, your good business might take a dive.
Leave a message once a week. Send an email once a week. Send an invoice once a week. It won't take much time, and after a while, you'll probably get your money if an attorney or collection agency would have.
Leave the door open for future business. Being business owners ourselves, we know how difficult it is to get to a point where "I have a guy for that!"
One of the most compelling reasons to pay a bill is to do business with that company again. I have several GREAT customers that let their payments laps at one time or another, but after a while, they realized we were pretty good to work with and they squared up.
WildWestDesigns
Active Member
I don't disagree with you there. However, someone doing something illegally to collect said money is just as bad.
More then likely it's due to people not knowing what recourse they have. I see that all the time.
Gino
Premium Subscriber
Repossessing a sign is probably truly the best and most effective way to get someone's attention. In fact... lotsa people.
As far as I know, once you or your sub has installed a sign or whatever on a customer's wall, building or whatever.... it is now their sign.... paid for or not. Just because a sign is on the building, does not give you the right to legally take it down. You are a sign shop with terms and just because you can't collect your money or run your business properly get receive money legally, does not give you the right to now become jury, judge and repo guy all in one and start removing other people's property.
With this kind of thinking, you could start taking automobiles, houses and other unpaid items, if you think you are that much above the law.... why stop with signs ??
If this customer decided to get the police involved while you're there taking it down, you could be arrested for countless violations... first one being stealing and the next trespassing.
As far as I know, once you or your sub has installed a sign or whatever on a customer's wall, building or whatever.... it is now their sign.... paid for or not. Just because a sign is on the building, does not give you the right to legally take it down. You are a sign shop with terms and just because you can't collect your money or run your business properly get receive money legally, does not give you the right to now become jury, judge and repo guy all in one and start removing other people's property.
With this kind of thinking, you could start taking automobiles, houses and other unpaid items, if you think you are that much above the law.... why stop with signs ??
If this customer decided to get the police involved while you're there taking it down, you could be arrested for countless violations... first one being stealing and the next trespassing.