Collections?

[EOPPI]

I have a client who has not paid his invoice in months. I have send reminders, called and texted.  He continues to tell me that he will pay but the promises seem empty. I have never had any trouble with this in the past, and I need help navigating the best options to get this resolved. Can anyone recommend a collection agency?

[maxpete]

@EOPPI sorry that you are dealing with this! One thing before going into collections might be to send them a demand letter to see how they respond. 

Tagging a few members here in case they have ideas too! @Donnie-M and @CareyJo 

[EOPPI]

@maxpete Do you have a sample of this form?

[maxpete · Accepted solution]

I don't have anything off hand, but I would just recommend searching online for example templates that you maybe able to use. I would also look in your area at potential attorneys would could support on this too. This is an example one from Freelancers Union who I have come across back in my freelance days!

[CareyJo]

@Donnie-M There are a couple of things mentioned here that are true.

1.  It needs to be worth your dollar.

2.  It depends on how much you're trying to collect.

3.  Small claims court can give you a verdict but it doesn't guarantee a payment.

4.  You must legally send a demand letter before you do anything else.  Even though you have made multiple forms of attempts to collect, you must legally prove that you served him something either by a process server or a certified letter in the mail.  The court will not consider any action until you've done that.

My suggestion is to start with the letter.  Address the number of attempts that you've made to collect.  Add the late fees in the letter.  Give a specific date that payment must be received by or you go to court or collections.  Make sure that you add that this amount will increase every thirty (30) days until paid in full, including late charges and any related costs incurred.

Collection agencies tend to take about 15% off the top of what the client owes and you don't get paid until they do.  Small claims court is usually a max amount of $2500 for a claim amount.  I would consider all options before writing the letter.  An attorney won't want to help you uniless you're asking for several thousand dollars or more and they will cost more than a collection agency.

Hope this helps.

[Donnie-M]

@EOPPI Yea best bet, send a demand letter, and then just file a small claims suit yourself.  Most of the time they won't show anyway, but you can then try to collect on it.  It really depends on how much money you are talking.  Stinks to have to deal with this type of thing, but it is a risk sometimes, but you have every right to try to collect.