What to do with a customer who does not pay?

Hi everyone, I was working for one company for like 2 years. They were always late with payments on 30 days end of a month, they were paying 60 days end of the month. Invoices were good so I was closing eyes on late payments. Starting from beginning of this month i don’t work for them anymore. They still owe me few invoices from October last year total around £10k. They keep telling me that they will pay it but they don’t. I don’t think that they take it seriously.

What would you do being in my position?

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My wife took a non-paying customer to the small claims court, and obtained a CCJ against them. Unfortunately they still didn’t pay up, and the costs of taking further court action to obtain an earnings attachment or authority to instruct bailiffs was just too high. (There was no guarantee the court would award her the costs of collection, and a new order would be needed if they changed employers)

The upshot being, 10 years later she’s still not been paid, and almost certainly never will be.

syva:
Hi everyone, I was working for one company for like 2 years. They were always late with payments on 30 days end of a month, they were paying 60 days end of the month. Invoices were good so I was closing eyes on late payments. Starting from beginning of this month i don’t work for them anymore. They still owe me few invoices from October last year total around £10k. They keep telling me that they will pay it but they don’t. I don’t think that they take it seriously.

What would you do being in my position?

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As much as it’s against the law and the fact I don’t condone it but if I was owed 10k and was being fobbed off they’d be given two choices and one is pay up the other you can use your imagination for but they’d lose far more money on the 2nd option because it sounds like they are a cowboy outfit.

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I’d go down to there premises early in the morning a block the entrance off with your lorry , tell them it’s not moving until they square you up ,there’s nothing they can do ,it’s illegal to block someone in but not to block them out ,we done this on many occasions and it’s worked every time only one firm didn’t use us again which we couldn’t of given a zb about anyway .

A bit off thread but when I was growing up my best mates Dad had an engineering firm. Sat in his house when a fairly normal looking bloke came round knocked on his door and had a chat with the Dad. Then handed him a stuffed envelope, shook hands and left.

Found out years later from the Dad, it was his “debt collector”. All he did was give him the names, why the debt was owed and the amount.

The Dad said it might take him a few weeks but he never failed to bring the money (minus 1/3 for his expenses!).

I imagine he could be handy right now.

Take out an action against them using moneyclaim.gov.uk/web/mcol/welcome and add £500 to the amount of the claim to pay for the cost of bailiffs should you need to send them in later.

They will then have two choices, to defend the claim or to not turn up at the hearing. If they choose No 1, then they have no choice but to admit the debt, just to dispute the extra £500, if they don’t turn up you will be awarded whatever amount you have claimed.

If they still don’t pay, instruct bailiffs. It may take a while but if they have assets equal to the amount of the debt then you will get all of your money in the end, and as a bonus the longer it takes, the more they will end up having to pay. I took a car dealer to court over a £2,500 car and because he tried every trick in the book to avoid paying it ended up costing him £4,600.

Harry Monk:
Take out an action against them using moneyclaim.gov.uk/web/mcol/welcome and add £500 to the amount of the claim to pay for the cost of bailiffs should you need to send them in later.

They will then have two choices, to defend the claim or to not turn up at the hearing. If they choose No 1, then they have no choice but to admit the debt, just to dispute the extra £500, if they don’t turn up you will be awarded whatever amount you have claimed.

If they still don’t pay, instruct bailiffs. It may take a while but if they have assets equal to the amount of the debt then you will get all of your money in the end, and as a bonus the longer it takes, the more they will end up having to pay. I took a car dealer to court over a £2,500 car and because he tried every trick in the book to avoid paying it ended up costing him £4,600.

Thanks Harry, I think this is what I will do.

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WHY NOT SEND THE BOYS ROUND :smiley:

Make sure that all your invoices refer to your terms of business and that those terms are guided by the wording which the following link suggests:

gov.uk/late-commercial-paym … comes-late

It doesn’t particularly help getting the money out of the debtor, but it does ensure that the money outstanding attracts interest daily which can be enforced.

Punchy Dan:
I’d go down to there premises early in the morning a block the entrance off with your lorry , tell them it’s not moving until they square you up ,there’s nothing they can do ,it’s illegal to block someone in but not to block them out ,we done this on many occasions and it’s worked every time only one firm didn’t use us again which we couldn’t of given a zb about anyway .

I saw a car hoist company turn up at a garage and start to remove the hoists they’d put in a week or so before, didn’t take long for the garage boss to find the money when he realised he’d have nothing to put the cars on and quicker than legal action. :laughing:

I believe the MCOL is restricted to collecting £5k?
Spend £100 on a solicitor, depending on the standing of the company the threat of a winding up petition might be enough.

Depending on what the goods are that this firm was asking you to transport and if they are the owner of the goods, ie the manufacturer and not a freight forwarder, you could offer to do another job for them and then hold the goods, ie putting a lien on them. If you are holding a trailers worth of goods valued at 50k and they want it delivered to keep their customer happy, it should focus their minds somewhat.

Get yourself a Flamethrower, awesome kit, never fails to “illuminate” the situation :wink:

Using a solicitor or court is not always the way ,sometimes it just means you’ve given the zbs enough time to get out and feather their nest before going squash .like I’ve said get down there block the job off and show your unpaid invoices for all to see .

I watch very little television but one programme I find curiously addictive is “Can’t pay? We’ll take it away!” and it’s amazing how so many debtors manage to find the dosh when the bailiffs turn up with a writ of possession.

muckles:

Punchy Dan:
I’d go down to there premises early in the morning a block the entrance off with your lorry , tell them it’s not moving until they square you up ,there’s nothing they can do ,it’s illegal to block someone in but not to block them out ,we done this on many occasions and it’s worked every time only one firm didn’t use us again which we couldn’t of given a zb about anyway .

I saw a car hoist company turn up at a garage and start to remove the hoists they’d put in a week or so before, didn’t take long for the garage boss to find the money when he realised he’d have nothing to put the cars on and quicker than legal action. :laughing:

I did some work once for a firm who were struggling to get paid for goods supplied, they couldn’t take the goods back because they hadn’t printed on the paper work about goods remain the property of ? Until paid for in full .

Harry Monk:
I watch very little television but one programme I find curiously addictive is “Can’t pay? We’ll take it away!” and it’s amazing how so many debtors manage to find the dosh when the bailiffs turn up with a writ of possession.

Harry we are the same that’s 1 programme we do watch,Thing is they always say " If you can’t pay they have the power to make you bankrupt,soon makes them pay".
Court for CCJ then escalate to High Court Writ then they have to pay plus costs.

I once had the same problem, so I just asked a friend who is a member of the travelling community to park his caravan in the customers premises which he did, then rang the customer and told him pay up or in one hour the rest of the family will be there, it worked for me!!