# Own business - non paying customer - any advice!



## Libeth (Jul 17, 2007)

Hi Everyone

My DH and I run a company doing home improvements and repairs and for the last 12 months have been doing a lot of work for a guy who runs a letting agency.  He emails jobs through to us and my DH does them.  Anyway, basically he has now decided not to pay us for the last job which is £700 and I know its not a massive amount of money but its enough.  He has always been awkward and quibbles everything but he gets a good job for an excellent price.  He has decided not to pay as he thinks it took too long to get the job done and now wont answer the emails / phone.  I dont really want to go down the small claims route but would really like to get the money back or at least enough to cover the cost of the materials we have laid out.  

I wondered if anyone else had had problems like this!  Just dont need the stress this close to Christmas and everything!!

Thanks xx


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## angel1888 (Oct 19, 2004)

Libeth

I'm a solicitor and from my experience a 7 day letter from a lawyer normally does the trick.  It is just enough to frighten them into paying!  If you don't want to use a solicitor yet then write your own 7 day letter to him - it is basically along the lines of we did the work, we're entitled to be paid, pay us within seven days or we'll take legal action.  If he thinks he can get away with it he won't pay you - he needs to know he can't.

Good luck!

Angela


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## AmandaB1971 (Feb 19, 2006)

I agree.  I work full-time (employed) and I also have my own Training & Consultancy Business and I had this with a big housing association.  In their case they just had so much red-tape before bills were paid it took forever, however I was waiting for the money (nearly £2k) so I sent them a 7 day  letter and the cheque was hand-delivered later the same day!  

Axxx


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## Siobhan1 (Jun 24, 2004)

I work in credit control (chasing debt) and we send all our clients a 7 day final notice once the debt becomes overdue.

If you need any ideas on wording your letter, let me know & I'll PM you a version of our letters.

I know you don't want to have to go to small claims but if a 7 day notice doesn't work I would advise that you do it as if the work was done he doesn't have much of a leg to stand on & will have to pay all costs on top of your invoice amount.

Siobhan x


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## larkles (Jun 29, 2005)

Hi Libeth 

I work in an estate agency and when we have people that don't pay their bills we send them a "14 day notice before action" letter, it always does the trick. If you want further details pm me!

Best of luck

Larkles
x


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## Anthony Reid (Jan 1, 2002)

I think the 7 day letter is the right way to go.

In addition I'd think about if the client caused any delays or changed any requirements during the contract. Then I'd tell them that if they do not pay within 7 days then you will also be pursuing them for the additional costs + legal expenses.


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## sallywags (Jun 27, 2005)

Yep, we do the same - we normally give a 10 day reminder, and nine times out of 10 that does the trick.  On the two occasions it didn't, you can do small claims on line - it's REALLY easy, just google small claims, and we currently have one outstanding who didn't even respond to that so it looks like we will be going to court!  however, the other one coughed up (including small claims fees of about £30) almost immediately.

Good luck! hopefully a sternly written letter should do the job.  

and by the way, £700 IS a lot of money!!  We've gone to court for £2-300.

Just posted at the same time as tony - and yes, we also include late payment charges/interest/admin charges etc depenidng on how much they owe, how long overdue they are and partly how much they've p*ssed us off! (all the charges are in our t&cs but we don't always enforce them)


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## Libeth (Jul 17, 2007)

Huge thanks to all who replied!  

My Dh managed to speak to him yesterday evening (we rang off a different number) and they had a 'chat' and the money is supposed to be landing up in our account in the next few days - if it doesnt I will take up some of the very kind offers of example letters and get one of those out to him.  Very frustrating when its not even been a full year of trading for us and you get people messing you around.

Huge thanks to all who replied and Happy Christmas!


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## Libeth (Jul 17, 2007)

Hi - just to follow up what has been happening 

My DH spoke to the client and he never did pay the money so we gave him till after Christmas and then sent him the 7 day letter (which I was very kindly sent).  We have just got back off our holidays and received a letter back saying he is going to counterclaim for our £700 and that he thinks we owe him £2500 for 'proffesional advice' which we havent received formally - he occasionally spoke to my DH about ways to develop the business but it was nothing formal and certainly wasnt recorded and we didnt ask for it.  

We have been to the Citizens Advice this morning and they have suggested that he is trying to scare us (and he is doing a very good job of it) to not pay.  Anyway, DH rang him and he wont answer his phone so he rang off another number and spoke to him.  Its now looking like if we try to persue the £700 he is going to counterclaim and try and get £2500 off us.  I told DH we should write it off as a bad experience and try and cover it because we are starting our first go at IVF soon (egg share) and I dont want the stress plus I have started getting anxiety attacks and know that dragging this through to the courts is not going to help.  Also, the guy is the type that would send the 'heavies' round to our house as he knows where we live. 

Is it a bit of a wuss thing to do to just write it off or is it best in this case?  I think if we could be certain it wasnt all going to end nastily I would happily go for it but with so much going on its not something I really want to persue.

Argh - some people!  Makes you wonder why we set up our own business!!


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## Anthony Reid (Jan 1, 2002)

Libeth said:


> Hi - just to follow up what has been happening
> 
> My DH spoke to the client and he never did pay the money so we gave him till after Christmas and then sent him the 7 day letter (which I was very kindly sent). We have just got back off our holidays and received a letter back saying he is going to counterclaim for our £700 and that he thinks we owe him £2500 for 'proffesional advice' which we havent received formally - he occasionally spoke to my DH about ways to develop the business but it was nothing formal and certainly wasnt recorded and we didnt ask for it.
> 
> ...


I'd sell the debt to a collection agency... you might get back £500 quid and they are left chasing him for the £700.


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## sallywags (Jun 27, 2005)

don't give in!  Presumeably you have evidence of your debt - i.e. invoice, proof of work etc, but he has nothing?  It would not stand up in court - and the fact that he has only brought this up now would go against him.  If he has no agreement with you from when he gave you this 'advice', there is no invoice or proof and documentary evidence, he does not have a leg to stand on.  Don't let him bully you - look on the website for small claims, it is really easy to do. (we just googled it and have used it twice now).

Good luck!


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## Libeth (Jul 17, 2007)

We have the forms for small claims and it does look straightforward and have been advised we would be able to get the money off him - its just the small (!) matter of him reckoning we owe him £2500.  I know he is the type that would send someone round to threaten us and last time we had our IUI (just before the proceedure) someone phoned us threatening us that if we didnt settle up their over inflated invoice they would be round - we came to an agreement mainly because I was so stressed about the impending IUI!!  I know it sounds really pathetic but I am so tempted to just write it off as a bad experience and not have to endure the stress of it.  I got his letter this morning and it triggered my anxiety and I just dont want to have to deal with anymore stress   as I am really nervous about the IVF and other stuff and am trying to decide if its worth persuing the debt or accepting that our health and tx is more important (which obviously is) but lose the money.  I would never think of not paying someone for a job done properly and honestly.  Cant believe how some companies operate and their attitudes!


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## Anthony Reid (Jan 1, 2002)

This might also be useful to read : 
http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073792176
/links


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## Libeth (Jul 17, 2007)

Hi Tony = thanks for the link  - I am going to get my DH onto looking into it in more detail - going to let him deal with the stress of it!!

Sallwags - thanks for the info - we do have all the evidence and he is using bullying tactics so like you say we would probably be in with a good case.


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## angel1888 (Oct 19, 2004)

Sorry this man is so nasty!

I think Tony has come up with a great plan of action - sell the debt!  Normally I would encourage you to pursue this, but if you are worried about your health then selling the debt may be a way of getting some money back and getting rid of the problem.  

That said, this probably won't be the last time that a customer refuses to pay - unfortunately it is just part of running a business and it is worth establishing proper procedures to deal with it.  However, threats of violence are not the norm!  Make sure DH notes the time and content of these phonecalls and if there are any more threats, call the police.  That should take the wind out of his sails!

Sorry you are having to deal with this on top of treatment.

A xx


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