Client will not pay

MTCInc

MTCInc

Location
Bay Area, California
I have a client, who we have done work for in the past, that is not paying for a job we did about 4 months ago. She owes us $1600.

I have tried many times emailing her, calling her, snail mailing, and even dropped by her house to try to catch her. She has not responded in any way.

We did an excellent job on the trees. Left the site cleaner then when we got there. I just don't understand

Not sure what my options are right now. I do not have clients sign any contracts or the estimates when they accept the work. I have operated this way for nearly 20 years, and its worked out just fine. This is the first time I have ever had this happen. I thought maybe she may have died? But, when I went to the house a few weeks back, there was a fresh collection of plants on the porch to be planted, cat in the window, etc... Clearly still at home.

Don't know what to do. Was wondering if anyone has some advice for me. This is in California.
 
Think she could use a fresh load of logs and wood chips?
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Leave a message and an email saying that you're taking the case to small claims court if you don't hear back within a prescribed period of time (3 days to 1 week should do). Do your local research on small claims so you're not completely bluffing. See what happens.

I actually had this exact situation happening, and I threatened the client with small claims court. I actually WENT to small claims to file, but realized I was missing some essential documentation, and went home. She called that afternoon saying she hadn't received my earlier messages, and she paid within three days.

In RI it costs $60 to file a claim.

Mechanic's liens are more complicated and costly, but it's a good way to secure the $ if it is enough to justify the expense.

-Tom
 
That's the thing about handshakes. They work great… until they don't.

I'd seen an attorney for 2 reasons. 1. To assist you in putting together a contract that covers work that you do. 2. To see what recourse you might have against your client, and to at least send a demand letter to them on his letterhead.
 
She'd get in more trouble for pocketing a candy bar at the corner store. I don't understand the difference, both are businesses selling a product. They have a building we work out of a truck. Does that make us fair game? It ain't like the old days, before duct tape.
 
Theft of services. Were there witnesses other than your crew? Start with a certified letter. When she signs for it, there is no question about whether she got it or not.
I wouldn't play the woodchip game. They suck to clean up. Fertilizer on the lawn in certain letters lasts a long time I hear.
 
We use certified letters from the company attorney...after 3 mailed bills we send out...knock on wood...been a long time. Small claims doesnt mean you'll ever get the money, even when you win judgement. A job doesn't need to be a signed contract to win...a handshake job will/can still very easily win. Did they contract you to do said work? If yes; not paying? You win...easily when they don't show up for court.
 
A lot of this going around lately. I've been stiffed twice lately for about $2700.00. Attorney tells me theft of services very difficult way to go. Going to write it off as uncollectable on taxes. Have e-mails proving refusal to pay.
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Did you ever speak to her about whether the work was satisfactory? Do you know anyone else who might be able to give you some insight into this?

Whatever you say be willing to back it up with action, just as long as its legal.

Small claims judgements are great but inevitably you still need to collect. The property lien creates a cloud on title that will need to be settled in order for the property to exchange hands. You may have to wait longer but at least there will be a light at the end of the tunnel. that is if there is any equity available

Another choice is to hire a reputable collection agency. Yeah, I know, it sounds like an oxymoron. But you can then put it into the hands of professionals who will, for a fee, collect on your behave. Better to have some than none at all.

Other than that, right it off as an lesson learned.
 
Of course I was joking about the driveway dump.

So do you do work for any of the neighbors? They could be witnesses to you having been there as well as being alerted to the type of neighbor they have. Just don't go there showing your intention is to call out the neighbor, as you don't want to lose a good customer. Definitely want to tread lightly should you choose that route.
 
It's the real criminals fault. The bankers. Most people have maxed their credit buying future garbage. Got behind on my taxes, somehow that private information was forwarded to the banks. I owed $6500 and the next day my bank offers me a $6500 extension to my business line of credit and the phone starts ringing with calls from other credit companies with limited time offers. I didn't bite but it was a desperate time and I could of easily taken an offer and payed 100000Xs as much making minimum payments.

Anyway, that's what makes good people go bad and a good reason to require payment in advance. We're extending the consumer unchecked credit with no reasonable recourse for collection. What other legitimate business does that? Times are changing for the worse. If there was a culture where a verbal deal meant something it would of been here. That was about 20 years ago.

I can't waste my time and primarily energy on collections when working at a break even profit margin. I work in a small community and it's possible to publish the deadbeat's names with social media nowadays. Seeing as the rotten ones are local contractors I'd suspect the problem could be eliminated for the future if I felt that was appropriate.

I just did a general demand for payment on social media and all but one paid up. He needs some more pressure and a new approach in future dealings if there are any. These are some of my bigger clients and they'd pimp me out at my best rate and who knows double the price their customer pays and then not pay me. That'll put a Mercedes in the driveway and a Moomba on the dock.
 
[ QUOTE ]
Did you ever speak to her about whether the work was satisfactory? Do you know anyone else who might be able to give you some insight into this?

Whatever you say be willing to back it up with action, just as long as its legal.

Small claims judgements are great but inevitably you still need to collect. The property lien creates a cloud on title that will need to be settled in order for the property to exchange hands. You may have to wait longer but at least there will be a light at the end of the tunnel. that is if there is any equity available

Another choice is to hire a reputable collection agency. Yeah, I know, it sounds like an oxymoron. But you can then put it into the hands of professionals who will, for a fee, collect on your behave. Better to have some than none at all.

Other than that, right it off as an lesson learned.

[/ QUOTE ]
Once you get a judgment it is good for 27 years. There are ways to collect depending where you are. I have garnished wages seized vehicles and conveniently spoke loudly about my 100% collection record at a bar once. All in all I have always collected the money. A lien needs to be refilled every year and you may be waiting in line amongst others..
 
Thanks guys.... I think my next move will be a certified letter, just to make sure she is in fact still home and alive. After that, not sure. Small claims sounds like more work then its worth, and I believe, at least here in CA, you need to have a signed contract with "notice to owner" clearly stated on the bottom to enforce mechanics lien.

What a PIT. Like I've got nothing better to do then chase down money that was hard earned.
 
Send a certified letter. Do you know or work for any attorneys. I work for an attorney that let's me "cc" him on the letter. example- cc John Doe Esquire. This usually gets their attention.
 
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Strange thing happen. Remain polite, yet firm, and clear. I have a current no pay. After a long while of trying to reach him, I ran across his number the other day. He actually answered. He's trying to avoid bankruptcy, keep the house, keep the family together, make up for lost time, pay bills still coming in from the failed business, and work a job. Finally, got the explanation. Told him if he can pay the $350 at some point, fine, but I'm not going to bother him again, focus on his family, and good luck.

The lady could have had a stroke or something. Someone might be taking over the bills and be able to take care of it. You never know.


A detailed, signed contract helps to keep everyone having the same expectations on the scope of the work.
 
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