Hi All
Unfortunately we have a lot of delinquent clients right now- some are 6 months past due. I have tried to collect and have heard almost every excuse imaginable. We require people to give us credit cards since some people "forget" to send their monthly rental checks but a lot of cards are getting declined.
Instead of filing in small claims I was thinking of using a collections agency. We have a clause in our contract that if we have to use one that the client has to pay the money owed PLUS the collection fee. I have never used one. I was wondering if you have had experience with collections agencies, can recommend one or give me a heads up on what to ask them and look for when I am hiring one
thanks for your help with this! kh
Kate , hi Im libid .....that some of your clients are so late! Why did you allow to pass the 30 days ??? First of all my clients upon completion of Staging pay for the first 2 months. After that they get billed monthly! They have a due date and it is specified there is a 15 day grace period before the $35.00 late fee is added. As my client approaches day 10 after due date of payment I send a cordial email saying As of today we have not received your payment ,to avoid the $35 dollar late charge pay on time .
but Also add, " if you have sent this payment please ignore this notice "
When I owned a larger business, years back, I used a couple collection agencies. One of them, a small local firm did a great job. They collected a lot for me and let me know how it was going along the way. I used a big national firm and might have just sobbed in my hanky -- they did nothing that is why I switched. Answer -- Some really good, some worthless to obnoxious and bad.
In my former business, I used small claims court on various occassions. In virtually every case, all I did was file, and when they recieved their notice, miraculously, I received immediate payment.
Perhaps the threat of sending their account to collections within,, say, 15 days of receipt, via certified letter, would suffice to offer them incentive to pay.
Good Luck!
Michelle
I'm so sorry to hear this, Hopefully it's inventory you have already recouped and gotten out of the properties and now you're just trying to get back payments? Sorry I don't have any advice in regards to collection agencies.
Going forward though: my contracts stipulates that they have a 15 day grace period, after-which they have a 3 day notice to pay or quit. Either pay or I destage after the 3rd day. That way I at least am only out a total of a 1/2 a month's payment. However, luckily I have never had an issue.
Kate,
A subject close to my heart. I spent a good 15 yrs working in the Collection Industry. Be sure you interview your potential agencie on their standard practices. In addition if you have a particular "style" of the rep you want working your accounts you can request that. Depending on how much business you give them will determine their %. To avoid issues in the future secrure their Credit Card and get them on automatic monthly payments. I will email you a collections companie that I know well.
Kate, I'm in the same boat. I've already had my lawyer send a letter telling them they had 30 days to respond, and with 3 days left, I've heard nothing. Next step is collection agency. I'm going to ask Shell for the same info she sends to you. It sure is nice to know I"m not the only one having collection issues.
Hey all- thanks for your comments. I appreciate the help. To be clear- I require a credit card for all clients before the staging can take place. The problem that we are having is that cards are being declined and then we call the clients to get their new cc info and send them a new invoice and they are simply not paying. I do go in and collect our items but I am having a hard time collecting the fee.
Sadly it is a sign of the times- I have one client that owes me a thousand dollars but just lost his home to the bank and filed bankruptcy. I am out money but he is out a lot more. Of course I am angry about it but have to thank God for what I do have.
Thanks and I will let you know what happens. I cannot afford to take these losses as they are now in the thousands of dollars. KH
Kate ~ I am sorry to hear this news from you. I think I would speak to a Lawyer first. You may be able to put a lean againt their property. If they sell their home they have to pay any outstanding debts first before they can close.
You could even ask your lawyer about a mechanic's lean, or sometimes know as,(supplier's lean and design professional's lean,)
I hope this helps. Let me know how you make out.
So sorry about this. I would look into a lein though. On our big jobs that seem shady... I go and fill out the paperwork at least, then if there is a problem, you can fax them the copy of the lein to show them that you are not kidding. Give them a couple of days, then file it. Upon submission, it does take alittle while for them to receive the notice and they will be given 1 month to pay or it goes against the house. With these foreclosures, I am not sure how it will stick though. I have a similar procedure as Connie. I wish you the best.
www.transworldsystems.com this is the company that does collections. Be sure to make sure if anyone uses them that you fully understand the terms. etc. I do know the rep personally Duann Fincher you can reach her at Duaan Fincher [d1nonly1@charter.net] she will be more than happy to answer questions.
Kate: Sorry this is happening to you, and I imagine, many others. I have been fortunate not to have encountered this problem, knock on wood. We don't take credit cards, and everyone has sent payment as soon as I send the invoice. I would be curious to know how the collections thing works out. The more we know, the better off we are.
We would use small claims court in California instead. Collection agencies take a part of your collected funds. You'd fare better in small claims I think. BUT, problem is if they don't have any money you get a lein on their property, however someday they'll want to buy a car or house and have to pay you to get their loan. SO, it's something.
www.wnrs.com
I have used this agency before and they were able to recover over 50% of the debt that was owed to my architectural firm. I would recommend them highly for your situation.