- Location
- Youngstown, Ohio
What would you do if a customer refuses to pay you after you have completed a job they wanted done? Just curious to what everyone says about this and thought it would make a great thread for everyone to read.
What would you do if a customer refuses to pay...
- Thread starter DonaldRobertson
- Start date
- Location
- Retired in Minneapolis
When they tell you that they aren't going to pay, tell them that you're going down to the courthouse NOW to file a lien on their house. the lien will cover the costs of the job and collections and interest and anything else to run up the bill. Let them know that you won't spend any more of your time trying to collect the debt but when they try to sell the house or refinance you'll get paid for your inconvenience.
Whether you do get paid for anymore than your original contract doesn't make a difference. This is the first round of the battle. When you're filing the lien file in conciliation/small claims court too. Let them know that they will be paying all of your filing fees and for all of your time. You won't collect wages or added charges but you will have two legal issues moving.
then...let them stew. You could call them just before going to court and offer to settle for the contracted amount plus a bit for your time to file, etc. They can gamble whether the referee, they aren't judges, decide. If they blow you off you can bring this up when you have your time in court.
You can threaten to dump a load of chips in front of their garage too
Whether you do get paid for anymore than your original contract doesn't make a difference. This is the first round of the battle. When you're filing the lien file in conciliation/small claims court too. Let them know that they will be paying all of your filing fees and for all of your time. You won't collect wages or added charges but you will have two legal issues moving.
then...let them stew. You could call them just before going to court and offer to settle for the contracted amount plus a bit for your time to file, etc. They can gamble whether the referee, they aren't judges, decide. If they blow you off you can bring this up when you have your time in court.
You can threaten to dump a load of chips in front of their garage too
- Location
- Stockholm, Sweden
I like Tom´s aproach 
treehumper
Carpal tunnel level member
- Location
- Ridgefield, NJ
First thing that comes to mind is why they are refusing. Did you ask? Did they say? Do you have a written contract or any other proof of a contract to do the said work? Lot's of variables but if it's just a matter of refusing to pay for no good reason, then Tom's got the right manner to deal with them.
- Location
- Pennsylvania
We cut down a large Oak for some people I have know for many years, they used to be my grandfathers neighbors then my neighbors. The tree was a $3k tree we did for $2k, my boss cut them a break since I knew them. They never paid and they have had a lein against their house for the last 5 years, I have never spoken to them since then and only once acknowledged them with a wave(I didn't realize it was them). Way to go old neighbors(you jackasses), glad they moved and took their 4 noisey beagles with them.
allmark
Participating member
In NY you need to renew the lein at a cost and it doesnt get you the payment. Better to pusue court and get a judgement. They may not pay but then you can file the judgement and pursue other avenues. I have had vehicles seized before after I filed a judgement. To get them back they had to pay the judgement,court costs and filing fees and towing bills as well as interest on the debt
KentuckySawyer
Participating member
- Location
- Louisville
Re: What would you do if a customer refuses to pay
Turn them over to a collections attorney.
Never do a job without a signed contract.
Turn them over to a collections attorney.
Never do a job without a signed contract.
- Location
- Milwaukee, WI
Re: What would you do if a customer refuses to pay
Any further info on how to go about creating a contract to sign, if say it was a job you were doing for a friend of a friend? For example, what makes it legitimate in a legal court case?
Any further info on how to go about creating a contract to sign, if say it was a job you were doing for a friend of a friend? For example, what makes it legitimate in a legal court case?
Re: What would you do if a customer refuses to pay
Any "Proposal" forms available from office supply stores will work. I had mine printed with my business name to look more professional, but the information contained is the same. It allows you to state the scope of work, terms of payment and any other pertinent information. Both parties sign the form and voila, a contract.
Any "Proposal" forms available from office supply stores will work. I had mine printed with my business name to look more professional, but the information contained is the same. It allows you to state the scope of work, terms of payment and any other pertinent information. Both parties sign the form and voila, a contract.
Re: What would you do if a customer refuses to pay
sometimes when I get an angry customer, and they are being super picky, and I'm sitting there driving around with my bobcat trying to do the best job I can for them, I get tempted to grab their car and set it on top of their house.
But that just wouldn't be the right thing to do (smile)
sometimes when I get an angry customer, and they are being super picky, and I'm sitting there driving around with my bobcat trying to do the best job I can for them, I get tempted to grab their car and set it on top of their house.
But that just wouldn't be the right thing to do (smile)
- Location
- Youngstown, Ohio
Re: What would you do if a customer refuses to pay
[ QUOTE ]
sometimes when I get an angry customer, and they are being super picky, and I'm sitting there driving around with my bobcat trying to do the best job I can for them, I get tempted to grab their car and set it on top of their house.
But that just wouldn't be the right thing to do (smile)
[/ QUOTE ] I would laugh if someone really did that to a customer.
[ QUOTE ]
sometimes when I get an angry customer, and they are being super picky, and I'm sitting there driving around with my bobcat trying to do the best job I can for them, I get tempted to grab their car and set it on top of their house.
But that just wouldn't be the right thing to do (smile)
[/ QUOTE ] I would laugh if someone really did that to a customer.
- Location
- Lansing, NY
Re: What would you do if a customer refuses to pay
Almost dumped the chip truck and logs back off till they heard the cops,court,judge,and lien then they paid. I always ask if the job is to much and some kinda of payment plan setup.
Almost dumped the chip truck and logs back off till they heard the cops,court,judge,and lien then they paid. I always ask if the job is to much and some kinda of payment plan setup.
Re: What would you do if a customer refuses to pay
A friend of mine did a job one time for a doctor. The guy refused to pay and my friend had a feeling he wouldn't, so he kept the chips and logs on the truck. When the guy said he wouldn't pay, my friend dumped all 13 tons of debris right against his garage door. The guy paid ASAP.
A friend of mine did a job one time for a doctor. The guy refused to pay and my friend had a feeling he wouldn't, so he kept the chips and logs on the truck. When the guy said he wouldn't pay, my friend dumped all 13 tons of debris right against his garage door. The guy paid ASAP.
Re: What would you do if a customer refuses to pay
I've had 3 deadbeats lately, the threat of a lien on their property had all 3 pay up pronto.
I've had 3 deadbeats lately, the threat of a lien on their property had all 3 pay up pronto.
Re: What would you do if a customer refuses to pay
Funny; I've never had someone refuse to pay. Must be my friendly disposition, or something.
Funny; I've never had someone refuse to pay. Must be my friendly disposition, or something.
- Location
- Youngstown, Ohio
Re: What would you do if a customer refuses to pay
[ QUOTE ]
Funny; I've never had someone refuse to pay. Must be my friendly disposition, or something.
[/ QUOTE ]
One day it may happen just because someone is low on money.
[ QUOTE ]
Funny; I've never had someone refuse to pay. Must be my friendly disposition, or something.
[/ QUOTE ]
One day it may happen just because someone is low on money.
Re: What would you do if a customer refuses to pay
I'm betting they'd find the money fast.
I'm betting they'd find the money fast.
- Location
- Bay Area, California
[ QUOTE ]
When they tell you that they aren't going to pay, tell them that you're going down to the courthouse NOW to file a lien on their house. the lien will cover the costs of the job and collections and interest and anything else to run up the bill. Let them know that you won't spend any more of your time trying to collect the debt but when they try to sell the house or refinance you'll get paid for your inconvenience.
Whether you do get paid for anymore than your original contract doesn't make a difference. This is the first round of the battle. When you're filing the lien file in conciliation/small claims court too. Let them know that they will be paying all of your filing fees and for all of your time. You won't collect wages or added charges but you will have two legal issues moving.
then...let them stew. You could call them just before going to court and offer to settle for the contracted amount plus a bit for your time to file, etc. They can gamble whether the referee, they aren't judges, decide. If they blow you off you can bring this up when you have your time in court.
You can threaten to dump a load of chips in front of their garage too
[/ QUOTE ]
I believe you have to have a signed contract with "notice to owner" included in the contract in order to file a lien.
I recently had an issue with a customer not paying. Went for over two months. I finally said I was going to take her to small claims court and I received a check in a few days.
When they tell you that they aren't going to pay, tell them that you're going down to the courthouse NOW to file a lien on their house. the lien will cover the costs of the job and collections and interest and anything else to run up the bill. Let them know that you won't spend any more of your time trying to collect the debt but when they try to sell the house or refinance you'll get paid for your inconvenience.
Whether you do get paid for anymore than your original contract doesn't make a difference. This is the first round of the battle. When you're filing the lien file in conciliation/small claims court too. Let them know that they will be paying all of your filing fees and for all of your time. You won't collect wages or added charges but you will have two legal issues moving.
then...let them stew. You could call them just before going to court and offer to settle for the contracted amount plus a bit for your time to file, etc. They can gamble whether the referee, they aren't judges, decide. If they blow you off you can bring this up when you have your time in court.
You can threaten to dump a load of chips in front of their garage too
[/ QUOTE ]
I believe you have to have a signed contract with "notice to owner" included in the contract in order to file a lien.
I recently had an issue with a customer not paying. Went for over two months. I finally said I was going to take her to small claims court and I received a check in a few days.
It is pretty uncommon to have someone refuse to pay for no good reason.
It is much more common to have someone refuse to pay over a dispute (property damage occured or they didn't like the end result of the work). Although, even in those cases you can work it out 99 out of 100 times (usually by knocking a little off the quoted price).
I don't believe signed contracts are necessary unless it is a major job ($10k +), but that's just my opinion based on experience. It certainly doesn't hurt to have them sign something.
I think real key is: have someone (either yourself or an employee) who is a closer. Our boss didn't take no for answer... Payment is due upon job completion. No exceptions. If a client said we could pick up a check the next morning... he'd be over there that same night.
It is much more common to have someone refuse to pay over a dispute (property damage occured or they didn't like the end result of the work). Although, even in those cases you can work it out 99 out of 100 times (usually by knocking a little off the quoted price).
I don't believe signed contracts are necessary unless it is a major job ($10k +), but that's just my opinion based on experience. It certainly doesn't hurt to have them sign something.
I think real key is: have someone (either yourself or an employee) who is a closer. Our boss didn't take no for answer... Payment is due upon job completion. No exceptions. If a client said we could pick up a check the next morning... he'd be over there that same night.
