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Dead Beat customer

beyondgraffix

beyondgraffix

New Member
Hello Everyone,
I would like some advice on how to handle a dead beat customer. The customer owes me nearly $4000 in installation charges. He has paid $1000 of it. His second payment of $1500 bounced which caused $670 in overdraft charges. He is now not answering phone calls, emails, and certified letters. What else can I do to get this person to pay-up.

Any suggestions or advice would greatly be appreciated.
 
Pat Whatley

Pat Whatley

New Member
For the overdraft charges go talk to your bank. If you've got a history of not being overdrawn they're usually pretty forgiving ONCE. Explain the deal to them and see what they'll do.

For the bounced check the guys not calling you back because he's just going to have to tell you he doesn't have the money and is even further behind now that the bank has started hitting him with overdraft charges. Call your local district attorneys office and ask them what to do. Locally we have to send them a Certified Letter demanding payment, wait 10 days, then if they don't pay the DA goes after them. It usually takes the DA about 6 weeks to collect but they ALWAYS collect.
 
binki

binki

New Member
file a civil suit. in california once you win you file for a 'statement of assets' which forces them to show up to court and declare all assets which the judge will sell to pay the debt plus court costs. if they dont show they will be in contempt of court and go to jail.
 
G-Artist

G-Artist

New Member
There are two issues here.

The first is getting screwed by your bank. Banks make HUGE and usurious fees via their BC policy. Most, if not all, will put a BC through twice or more and garnering a fee each time. Neither your state legislature nor Congress will help (limit fees and bad practices) as they are owned by the bankers. I came to an arrangement (in writing) with my bank that they will only process a BC ONCE!!! If you can't do the same, start bank shopping for one who will.

The second issue: the bad check is a simple matter. Each police dept. or sheriff 's office has a fraud squad that handles BC's. There is a bit of paperwork (not much) and the person in your organization who actually took the check has to appear in court and point out the maker/giver if it comes to a court trial. Issuing a BC, known as "uttering" under the law, is a CRIME. It can be a misdemeanor or even a felony depending on circumstance. Once you sic the cops, the prosecutor's office and the court on them they will either pay or go to jail plus never get out from under the system until full restitution is made. Make sure you keep a photocopy of everything you pass on to the cops in case something gets lost on their end.
 
Techman

Techman

New Member
This check is in the felony arena.. It is not a little old bad grocery check. This one is felony time. I personally put several of these types into the hoosgow when a warrant was issued for a felony bad check.

They always came up with the money. So I would be calling my DA office and never mind with the small claims nonsense.
 
TheSnowman

TheSnowman

New Member
You can't do anything. They don't have to pay. Period. I've tried EVERYTHING to get a customer that owes me $5,000 to pay. All I get is, well, he can file bankruptcy, and you can't do anything but watch. Nothing. Only in America.
 
Deaton Design

Deaton Design

New Member
Here, if someone writes you a bad check, and doesnt make it right, its called theft by deception. We contact the county attorney and they take it from there.
A warrant is issued and they are picked up by the sheriffs department and taken to jail and usually bonded out. THen they have to answer in court, so its a big thing to write a cold check. Go get em...
 
G

gbarker

New Member
Kraig is right about people that just refuse to pay but not those that write bad checks.

I had a similar thing happen when I was a retail shop, on a smaller scale. The check bounced twice. I did the certified letter thing that is required by our magistrate, waited the 10 days that took his a$$ to court. He never showed for court, twice, then low and behold I got a call from him asking if I would settle out of court. He was pulled over by a sheriff in another state and taken in. Not because he was pulled over but because of the warrant for not showing up in court. He paid the clerk of court in a day or so. It took a little time but I got my money.
 
T

thesignguy1986

New Member
Here in Ohio it depends on the amount. If the bad check is under I believe $300 there isn't really anything they can do other then tell you to pay it. If it's over they can sue you and take further action. Though in Ohio if you recieve a bad check and then make payment arrangements and accept even one payment you can't take him to court or anything for that check if he stops paying though you can get him for a defaulted loans which ends up in a wage garnishment
 
Techman

Techman

New Member
i see a few posts not stating the facts.
Checks over a certain amount usually around 300 are a felony. That means the law must do something. Instead of reading a few posts about speculation I would find our for myself and then pursue the money.

No one can avoid a felony charge.
 
vinylbarry

vinylbarry

New Member
Techman is right over 300.00 it becomes a felony and thats it period take it to your local DA right away.
Our local da collects on all bad checks he has a seperate clerk that does just checks aint that something but they do collect. Ever check we have taken to them has been collected and they charge 100.00 to the check writer for it and we get 50.00 and they keep 50.00.

TAKE IT TO YOUR DA.
 
royster13

royster13

New Member
Civil Penalty - Maryland. Amount due, $15 fee, and amount up to two times the amount of the check, but not more than $1,000. Holder may claim damages 30 days after mailing notice of dishonor to last known address of maker or drawer.

Criminal Penalty - Maryland. Misdemeanor - maximum fine $100 or imprisonment up to 60 days or both. Felony - maximum fine of $1,000, imprisonment up to 15 years, or both.

Payments for COD or preexisting debt: In most cases, NSF checks are not considered under the bad check law if they are used to pay an antecedent debt. Therefore, if a debtor gives a debtor an NSF check to pay a note payment or to pay an invoice that is on account, the act generally does not fall within the bad check law. However, if the debtor provides a creditor with a NSF check for a COD order, then that act does fall within the bad check laws.

From: http://www.ckfraud.org/penalties.html
 
sjm

sjm

New Member
beyondgraffix said:
Hello Everyone,
I would like some advice on how to handle a dead beat customer. The customer owes me nearly $4000 in installation charges. He has paid $1000 of it. His second payment of $1500 bounced which caused $670 in overdraft charges. He is now not answering phone calls, emails, and certified letters. What else can I do to get this person to pay-up.

Any suggestions or advice would greatly be appreciated.
Click to expand...

Ask for 30-50% up front, saves you all the trouble. If the client is not willing to put up then recommend him to a competitor.
 
G-Artist

G-Artist

New Member
Technically it is your property until paid for in full. On our quotes and invoices we clearly state same. Plus all our invoices state "net delivery." I have done self-help once on a pan face and worked with another sign shop on 6 of his repossessions. Each time we were both paid in full and we charged a reinstall fee.

You can use self-help by "repossessing." Each state can and most likely will have laws, rules as well as court decisions on that issue - ask your lawyer.

As to where the line is between a misdemeanor and a felony that, too, is a matter of state law. There is no one-size-fits-all as to the threshold amount.
 
heyskull

heyskull

New Member
We state on our invoices all materials supplied by us is ourproperty until paid for in full.
Believe me I have ruined businesses taking their signs down for non payment.
I know it's a bit late but if this was a new customer the job should have been paid for in full before commencing.
Normally if the customer refuses this he hasn't and never will have the means to pay the bill!
Here in the UK we can put businesses through the small claims court and I have had varying degrees of success.
But as time goes on I have become hard on customers as I like eating, drinking and living in a house!!!

SC
 
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