Customer won't pay !! What would you do?

[jiarby]

It is indeed a criminal offense! Just casually file a complaint with the sherriff and the district atty.

20+ years ago I bounced a check for $5.36 to a grocery store. I was a poor college student and thought I had the money. I was 30¢ short and the check was refused (adding a $30 NSF charge at the bank). Then the store added a $25 NSF fee.

Now I was going to have to have $60ish to make the $5 check clear. I didn't have it ($60 was almost 20hrs of wages that wouldn't come for two more weeks!). The store presented it to the bank a week later. Still had a negative balance. The check bounced again. Another $30 NFS at the bank. Now I am WAAY upside down and there was no way I could come up with $100 to clear this $5 check.

After the second NSF the store said I had to pay them in person in cash. The bank closed my account because it had a negative balance too long. The bank filed for collections to get their $75ish, which added even more collections fees.

I never did go pay the store the $30ish.

About a year later I got a letter from the County Atty. and had to appear in court in 30 days. I ended up getting a deferred ajudication (at least I thought so).... they gave me 30 days to pay the check and the fees, and the court costs (now close to $150, just for the store not including the bank charges).

In 30 days I had it all paid, but I had to really scramble and scrape. Went back to court and they accepted the payment and I was done.

By the time it was finished I spent well over $250, plus several trips to "downtown"... was fingerprinted and photographed, and somehow ended up with a misdemeanor bad check thing on my record.

15 years later I was selected for an IT project management job at Wells Fargo bank. The salary was in the low 100k's range. I was super jazzed that I was accepted for the gig... It was very competitive.

As you have already guessed, I got a call the day before...

There was a problem. I didn't disclose that I had a banking related criminal history... they were very sorry, but they would not be able to use me for the job.

Seriously.... it is a TRUE story.

I was short 30¢ twenty years ago and it cost me a 100k job decades later.

Today I keep a comma in all my bank balances.

 

[gabagoo]

I know up here that you can't technically take a sign down once it has been affixed to a building, so that option is out here in Ontario. As far as bad cheques go, there was a time when you could actually get the police to do something about it, but now they are far to busy with more serious offences and that option is gone.

 

[Pro Signs & Graphix]

Scott,

Without an actual workorder, which must include various clauses (as stated Dept. of Agricul.), you will not be able to get a lien on the truck.

The transmittal of a worthless check is indeed a crime, and probably even you second best insurance to getting paid. The downside is that you still must have things in order (signature's, etc.) and there still is a "process". Nevertheless, the customer knowing that worthless checks are a crime automically turns up the heat.

Forget small claims and collection agencies. Collection will want 50%, and small claims will cost you $100 plus your time (which will end up having a greater value than $350.

While $350 is $350, try and work things out with tact. If this customer is a good customer, and it sounds like you thought of them that way, then work it from that angle. It may take a while more than you like, but you may have better odds at getting paid - even more for the hassle.

Whatever you do, DO NOT release or lose that check unless you are paid in cash. It is also a good idea to write down the name and a physical description of the person that actually gave you the check, as well as anybody that brought the vehicle in (the State Attorney and Sherrif's office will ask this - should it get that far.)

 

[Rooster]

Just walk into his shop and be nice to the guy. Times can be tough sometimes. Tell them you want 4 post-dated checks for the amount of the invoice and let him pay for it in installments. If that fails then there's plenty of other good advice in this thread.

The moment you even hint at criminal proceedings, you'll never get another order from this shop again. People are real funny about being accused of theft when they're making efforts to repay. Whether you believe or not, just by this giving you a check he's made an effort to repay. Either work with him until it's absolutely clear he can't pay, or kiss his account goodbye by putting the screws to him.

 

[Techman]

there was a time when you could actually get the police to do something about it, but now they are far to busy with more serious offences and that option is gone.

Bullshyte!!!!!!!!!

Tell them you want 4 post-dated checks for the amount

Very bad idea. Post dated checks are the same as knowingly accepting a bad check. Not enforceable in any case..

 

[SCOTTD]

I appreciate all the info ..

As far as worrying about pissing the guy off and him maybe not using us a again I could care less I'd run his butt out of my shop anyway..

I'll keep ya posted..

 

[gabagoo]

Bullshyte!!!!!!!!!




Very bad idea. Post dated checks are the same as knowingly accepting a bad check. Not enforceable in any case..

so tech guy, since you know. Just what are the police going to do? You know how many bad cheques are written every day? Maybe in a town like Mayberry sheriff taylor will get Barney to go beat up the offender but I don't think large metropolitan forces have the manpower to chase your bad cheques...so bullshyte to you too...lol

 

[Pro Signs & Graphix]

In Florida...

- Never accept a post dated check. They are viewed as an extension of credit and only allow civil recourse.

- Never agree to hold a check (even if not post dated). That action is also viewed as an extension of credit.

 

[Techman]

Just what are the police going to do?

I don't think large metropolitan forces

You do not think.. That's the challenge.. You do not know for sure. I know for sure about what I say because I've used the services more than a few times in more than a few states.

If they are doing their job.. Most police agencies have a bad check division that handles this work. They charge fee to the deadbeat for their effort. Many other jurisdictions have a division in the DA's office that handles bad checks as well.
In either case they charge the dead beat a hefty penalty for that bad check. One place I dealt with charged 87.50 to collect on a bad check. Plus the $25 allowee by the state bad check fee to th4e merchant. Plus the face value. That's a money making deal for them if they play it right. And the local bizz person's get paid as well.

You either pay up or get a warrant against you.. That's the law. If your area does not follow the law then the local bizz persons should get together and find out why.

I personally used the DA's office and the sheriffs office and the local city court office to collect on bad checks. It works. It's easy and I got paid. I did this in more than one state as well.

But, I wouldn't go by a post on this BB. Theres too much bad advice. I would find out for myself and then do whatever it takes to get paid. Very likely most cities around have a bad check office. USe it and get paid.

 

[totalimage]

Accually in Florida the amount of $350.00 is not criminal until the process is complete. You must prove intent. Did he intend or knowingly and willingly write a bad check??? Hard to prove. If the check was writen on a closed account it is a arresetable offense depending on the date of closure. First of all you need to send a certified letter to the writer of the check with a copy of the check front and back it would help to have the state statue atached to the letter ( which I dont have with me right now...Just look it up ). If and when you receive a signature back wait 30 days. If no response then file with the state attorney. If he does not comply with the states order a warrent will be issued for his arrest at that point. With the 30 day letter it shows the state that you have attepted to collect a debt of a worthless check. One thing that will help if you have a copy his drivers license # down. This process usually is about 90 days in most cases. But since he is/was a good customer I would give him the oppotunity and send him the certified letter. See how he reacts then....Good Luck

 

[f3rri]

Play nice

First of all you need to decide if $350 is going to make or break you? Actually figure out what you have into the job. I'm guessing $100 - $125. Your time is better spend doing other jobs and moving on. If the guy can't pay... He can't pay. He will either close shop or get some checks in and pay in the order of importance. Not good news for you. You may have a better chance having a change of heart and actually meeting with him and resolving this by a: asking to get $100-$125 and call it a day or telling him that you are in the same boat and you have kids to feed too. Maybe he has some tools or something of value to trade or give you. In the slight event that he comes back his feet he will remember that you helped him out in the time of need. Seriously, maybe someone screwed him on a big job and just can't pay but he is obligated to pay his materials and employees. I know this is not your problem but would you rather help him a little than sink him... He could always send you a referral to a buddy that can give you $XXXXX in work.
Me personally, I would approach him and ask him how he would like to resolve this and what's comfortable. I'm sure your not the only one calling every day and every debt call he answers is one less job he could be doing. We all have been beat... Final option go over to his shop and say you owe me 3-fitty MOFO! what do you have that I can ebay! lol

 

[JimJenson]

With 3 trucks, he must have employees. If written in my name, I would present the check for payment at the bank it was drafted from on a friday morning, and hope that his payroll is from the same account.

If it is written to a company name I would re-deposit it in a wednesday or thursday.

 

[AKWD]

First of all you need to decide if $350 is going to make or break you? Actually figure out what you have into the job. I'm guessing $100 - $125. Your time is better spend doing other jobs and moving on. If the guy can't pay... He can't pay. He will either close shop or get some checks in and pay in the order of importance. Not good news for you. You may have a better chance having a change of heart and actually meeting with him and resolving this by a: asking to get $100-$125 and call it a day or telling him that you are in the same boat and you have kids to feed too. Maybe he has some tools or something of value to trade or give you. In the slight event that he comes back his feet he will remember that you helped him out in the time of need. Seriously, maybe someone screwed him on a big job and just can't pay but he is obligated to pay his materials and employees. I know this is not your problem but would you rather help him a little than sink him... He could always send you a referral to a buddy that can give you $XXXXX in work.
Me personally, I would approach him and ask him how he would like to resolve this and what's comfortable. I'm sure your not the only one calling every day and every debt call he answers is one less job he could be doing. We all have been beat... Final option go over to his shop and say you owe me 3-fitty MOFO! what do you have that I can ebay! lol

Pretty sound advice IMO. Try to be civil first, but avoid phone/fax/email/snail-mail first. Be polite, but assertive. Be willing to deal (IE trade immediately IF anything is of value to you -- Don't settle for less than what YOU want), but still require full value. This covers your ass if you have to take it further from only collecting a portion -- If you offer him less to settle and he doesn't take, depending on law could reduce what you can collect for. If he refuses to act, intentionally avoids you (in person) or is an ass, leave it be at that point. If he is genuinely willing to try to settle it (and not bullshitting you), lay out specific terms of how you would like it handled. Make sure he is aware that whatever is agreed upon is final. As mentioned above, do not threaten or act as if you are 'forcing' them. (Forget the word now Hah!)

If you had to walk away because of asshattery or transparent lying, follow the steps with the DA's office/Sheriff in the steps required. Find out from the local office how to proceed. Depending on how big the company is, who wrote the check and so forth, the liability level for the owner may not be AS great, but will be unwanted heat and publicity. If he defaults on the above agreement without making a clear attempt, again, same as above.

As others mentioned, $100-$200 in time/materials is not a lot of time for you to waste. If you really think he's not going to pay, find the shortest route (Minus collection agency -- RIP-OFF and don't do much use usually) and take it. Look into the laws about public display of bounced checks out there too, and post it clearly and by the law.

Might want to revisit your agreements and look into how to write liens and other statements into the agreements. One technique I saw in another industry down in the US that was VERY effective was a very well-written agreement. When a check would bounce/nopay would happen, they would simply send the invoice again with noted late penalties/bounce fees/etc, and take the signed agreement, highlight the specific lien and other action phrases and make sure it was the first thing out of the envelope. People seem not to read these statements until it affects them.

This is my two cents however and I am not a legal professional; If you want real advice, talk to a lawyer or to the DA/Sheriff. Find that a teaspoon of sugar TENDS to go further than a cup of salt; Sometimes you need that salt in your other hand though.

 

[itzdeb]

You know, they may not have realized that the check is bad. How long ago did they write it? It may have been that something else bounced and put the snowball check overdraft fees in motion. Maybe they were just a little under and don't realize.
I'm not making excuses for them, but, to get the money back, I would go about it how the others mentioned: to notify them and make arrangements. They may just be okay to pay you back, and your goodness will come back to you.
If they try to stiff you, well, then, you may have to go the tough love route, and get a hold of the authorities.
I find that it is always better to find out what is going on and what you did by asking here was a great way to go; there are others that may be going through this and can learn or teach what happens, plus you have some time for the steam to blow off, and you'll be proud of the way you handled it.
Good luck in getting your money soon!

 

[SCOTTD]

I as I said before we have made several attempts to collect and been overly polite!!


I commend you and that is what these creeps prey on good people just like you and me..
Some of you sadi maybe he has fell on hard times, well so will I by letting this type of situation slide, really stop and think about it. It is illegal to write a bad check and I'm supposed to just write it off that he is having hard times this has been a 4 month long deal..

I sent a certified letter of intent to bring in the local PD if not paid in 10 days..

Honestly how many of you really would walk away from 350 dollars that you earned knowing the guy is just screwing you over.
I have bills too and you know what I do when I get them ? I PAY THEM!
If I can't afford it I don't buy it.
This guy is in the construction business and after talking to a deputy apparently what some contractors are doing is setting up several bank accounts and paying people like me out of accounts they know don't have enough cash and just taking the slap on the wrist and moving on .

So beware and as I said with my first post ALWAYS get $$$ UP FRONT.

 

[totalimage]

Good for you Scott.....Just make sure you have the state statue on the letter. the police dont get involved till the state attorneys give the warrent. The state attorney has a packet with all the legal paper work. I suggest to get it. If you dont dot your I's right they will kick it back. Good luck to you. Let us know the outcome.

 

[scarface]

damn by the looks $350 is chump change to some. I'm not saying its alot of money but we all could use a extra $350 if you ask me, if not then write me out for one right now if it's no big deal

I've heard the same BS from contractors, "oh i dont have the money cause things are slow", we all know thats BS cause contractors charge very large fees for onsite work and these are people who are just stingie with their money and have a slow period and think it's going to kill them to get something lettered for a couple hundred.

Also always trying to cut corners on the cheapest design/colors when really it will make their company look professional rolling up to a job or bid instead of not being able to tell them apart from joe blow with a plain white truck. Hell i had a client go from oh i want a really nice design with 3 colors to ended up getting just regular black vinyl on a red truck which is a bad color choice but at least he got what he wanted.