Question about Deadbeat customer

[CSL Enterprises]

I did over $800 worth of work for a family, and the guy told me to just send him an invoice (which I realize was my first mistake, because since this, I modified my billing system so that I get 10% to get them scheduled, 50% of the balance when I show up, and 40% at the completion of the job.) Since then, I have sent two invoices, and called him three times. The last time I spoke with him, he told me he sent me a check through an electronic checking system. Well I got it, but today I got it back from my bank with "Insufficient funds" stamped on it! I was so pissed I wanted to go over to this guy's house and throttle him, but I cooled off and decided how I would handle this. I typed a letter which will be sent certified mail saying that the check was returned for insufficient funds, and this needed to be rectified immediately by sending a certified check or money order now. I said that if it wasn't taken care of immediately, then I would take legal action through a collection agency. Does this sound right, or would you handle this differently? This is the first time something like this has ever happened to me, and I WANT MY MONEY! Any thoughts or suggestions?

Thanks,
Chris

 

[Bryan]

Dear Chris,

Glad you didn't go over there personally to collect. That is just asking for problems. You made the right choice to handle it professionally. My experience has found that you usually have very little problem getting paid from commerical customers and accounts, however, individuals or private parties are another story. Sounds like you are on the right track now though. With your existing outstanding invoice, going through legal channels are your best bet. In California, we have a thing called Small Claims Court and is quite effective with claims up to $5,000. I would check to see if your State offers the same remedies for small claims before going to a collection agency. We've been in the business for many years and only had to pursue payment in small claims court 1 time and won.

Best to you
Bryan

 

[CSL Enterprises]

Thank you Bryan! I'm almost positive we have the same thing here in PA, so I'll pursue that avenue, and keep my professional attitude. (As hard as that is sometimes)

Thanks again,
Chris

 

[Jon]

Chris,

One thing Bryan forgot to add that we also can collect 3 times the amount of the check for it bouncing. So $800x3= $2,400 plus any cost to you to go to court, filing fee, Marshall serving him fee and such.

You just might be a little happier making 3 times that amount, sure he won't pay, but after 30 days go back to court and have the court put a lien on his house, car and/o whatever else he owns.

Yes it is drastic but so is ripping someone off for $800.

I do say you did the right thing with collecting upfront now.

Jon

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Beep beep, the OPC Roadrunner coming through.

Jon Fleischer
Oasis Pressure Cleaning
(909) 792-2247
Fax (909) 792-5633

 

[Douglas Hicks]

Most of my work is commercial, so bad checks are not much of a problem, about 1 every year. Of course I get so mad and upset about the bad check that I DO NOT go see the customer in person. Go to the bank the check is drawn on, present the check to the teller and ask if the check is any good. You may need to show proof you are entitled to the funds. Get cash or a cashiers check. You may need to be firm and speak to someone at a higher level than a teller. If there are not sufficient funds, ask if there are funds for a lesser amount. I ask if the check would be good for $10 or $15 or $25 less than the amount the check is for. They cannot tell you exactly how much is in the account, but you can fish areound a bit. Once I made a $25 deposit into the deadbeats account. Then the check was good. Of course he knew the check would bounce, but was figuring he could write smaller checks that would clear. When I made the $25 deposit and cleaned out the account, all of the smaller checks bounced and he was stuck for the bank charges. Some may say I did not treat my customer fairly, but when the check bounced, he broke all trust with me and was no longer quailified to be my customer. Sometimes we are tempted to tell everyone about deadbeats, but be carefull, they can get you for slander. The next time the guy calls, tellhim you are too busy and suggest he call the competitor you dislike the most.This is one of those times it pays to have a good relationship with the bank.

 

[Jon]

I love it, depositing a small amount to cover the check then clean him out, GOOD DEAL INDEED.

Way to go, do it everytime and the bank will tell him to go someplace else and his credit gets flagged too.

I am in favor of it since bad check writers tend to do it over and over.

Your right, you don't need him as a customer again.

Jon

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Beep beep, the OPC Roadrunner coming through.

Jon Fleischer
Oasis Pressure Cleaning
(909) 792-2247
Fax (909) 792-5633

 

[Mike@Everclear]

Chris,

I don't think you need to get quite this excited just yet. You can deposit the same check a second time, even though it has all of that stuff written on it. Ask the customer if you can do that. Your bank will charge you a fee for that initial NSF check, which you should pass along to your customer. That's why you see those signs in stores that say "A $20 fee will be charged for returned checks".

Just because he bounced a check doesn't make him a deadbeat. He's probably a victim of all of that electronic crap. That's why I like to control my bank account myself, not letting too many electronic or automatic payments.

Last November, I did a large job for someone and the check bounced.......my bank charged me $5 for it. The customer called me up, I redeposited the check and I told him not to worry about the $5 (I didn't feel like the hassle). Everybody won, and then they went on to refer me to another good job...... So, in the spirit of customer retention and goodwill, you might not want to jump all over this guy.

My 2 cents......heck, maybe that was a quarter.

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Mike Hughes
Everclear
Souderton, PA

 

[Glenn]

Hey Chris,
One thing to keep in mind is you won't get the entire amount using a collections agency. Some keep 1/2. If they don't pay after the notice, try the small claims court.
Good Luck,
Glenn

 

[hotwaterwisard]

I Just sick my sister on them she buggs them so much they pay the bill just to get her offof their back.

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Hotwaterwizard@aol.com John DeRosa

 

[DevilDog]

Here is some GOOD news, most of you are thinking to shallow. Up until the point that he wrote you that bad check the only thing that you could do is take him to small claims court (big deal! could be 3 years before you see a cent), here is the good news, he wrote you the BAD CHECK and it is for over $300 which makes it a class one misdimenor. What does that mean? Take that check to your local states attorney and file it as "Theft of Services" (this is good in every state as it is federally governed). You did the work in good faith and he paid you with a bad check (buddy that is considered stealing). Belive it or not before he wrote you that bad check the only thing you could do is sit on your thumb but now you have him by the SHORTIES!!!!! Go and get him, YOU WIN!!!!!!!!!

DD

 

[Jon]

Devil Dog,

Very true but when you think about it, with all the more serious crimes being committed do you truly think the state or Federal Attorneys are going to take the time to go after a $300 dollar bad check writer?

Also true that small claims only awards you the money+ but has no legal authority to make the loser pay up.

Really want to outsmart the crook, become a Contractor, sure there is a lot to study for and pass test, then you can have them sign a contractors mechanics lien. They bounce checks you forclose on house.

I would think it is drastic but it is done by contractors all the time for non payment of a bill.

Jon

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Beep beep, the OPC Roadrunner coming through.

Jon Fleischer
Oasis Pressure Cleaning
(909) 792-2247
Fax (909) 792-5633

 

[Chris Mc 3]

John Wrote :

....< Hate to spoil things but >........

---- ---- ---- ---- ---- ----

Sorry.

Seemed funny at the time, albeit a bit "Juvenile."

Looking back at it now, I guess your right. I dont want any problems either. Lifes too short.

How do I remove my earlier post ?

(Whoever is in charge...Webmaster... etc....Can you please do this for me ?)

Have a great week-end all.....

Chris Mc 3 / Shiner

 

[David l Saulque]

Shiner

You can edit your post @ the bottom you should have a edit button.

David

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[AranPressureWashing]

I got this e-mail - maybe it will help - I haven't had a need as of yet to see if it works.

*******************************************************************************************

WE WANT ALL OF YOUR BOUNCED CHECKS!
AND OUR COMPANY WILL PAY YOU
100%!!! OF THE FACE VALUE AND THE SERVICE IS
TOTALLY FREE TO THE MERCHANT!

PAPER CHECKS, VIRTUAL CHECKS, CHECK DRAFTS,
WE WILL ELECTRONICALLY TRACK AND CAPTURE
ALL OF YOUR INSUFFICIENT FUND CHECKS ANYWHERE IN THE UNITED STATES!!!
!!!!!!

NO EQUIPMENT
NO DISCOUNT RATE
NO TRANSACTION FEE
NO SURCHARGES
NO STATEMENT FEES
NO ANNUAL FEES

PLEASE CALL 401-351-1350

7am to 8pm eastern standard time.
Thank you for your interest.

Ken



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Cleaning America - One Job At A Time!
I love My Boss! I Married Her!
E-MAIL: Randy Ferrantino at aran@bellsouth.net

 

[CSL Enterprises]

I waited to post this to make sure the guy's check definitely cleared, and it did...

I just wanted to thank everyone who posted information about this situation, i found it very helpful. I went to my bank the next day, and chose the path Mike suggested with redepositing his check. But first, I asked the lady to call his bank, and see if the funds were there. It was very easy to do, and she was glad to help out. At that moment, he had the funds, so I said, "put it through".
So I learned many different ways to handle this situation, and it turns out, this story had a happy ending! Thanks again for everyone's help.
Chris

 

[Expert]

That is the funniest thing I have heard all week !!! Deposit money in the deadbeat's account and present your check for payment.
You have done nothing at all wrong, in fact you gave money away.
I also like the advice given by others. We cannot do anything about the way people act, but we can certainly have full control over our response. Congrats for the professional responses !!!