Debt collection agencies - any experience?
Discussion
I run a small company, and business is mostly done fairly casually on the basis of an email setting out what we do and what we charge and the other party agreeing to it. It's worked very well for many years and we have always been paid.
However we did a job for a company middle of last year (July) which cost about £1,500 over three months, invoiced it monthly as usual and simply never got paid. I've chased it up, had promises, but still no money. The last promise was last week which was 'it's definitely in Friday's payroll, sorry for the delay'. Needless to say, no sign of anything.
Now I could go down the Small Claims route, but it's not a massive amount of money and I really don't have the time or the inclination. Which, I suspect, is what they're banking on. But I also don't want to simply let them get away with it because companies that shaft small businesses are the lowest of the low.
So, given that I'm not that bothered about the amount we recover, I just want to force them to pay it (and ideally some costs on top), is it possible to pass on or sell the debt to a company that will pursue them vigorously?
I'd be happy to get a couple of hundred quid (it's probably £200 more than I'll get otherwise) if I can be sure that the company in question will be given the aggravation of, say, a CCJ and made to cough up the cash they owe.
However we did a job for a company middle of last year (July) which cost about £1,500 over three months, invoiced it monthly as usual and simply never got paid. I've chased it up, had promises, but still no money. The last promise was last week which was 'it's definitely in Friday's payroll, sorry for the delay'. Needless to say, no sign of anything.
Now I could go down the Small Claims route, but it's not a massive amount of money and I really don't have the time or the inclination. Which, I suspect, is what they're banking on. But I also don't want to simply let them get away with it because companies that shaft small businesses are the lowest of the low.
So, given that I'm not that bothered about the amount we recover, I just want to force them to pay it (and ideally some costs on top), is it possible to pass on or sell the debt to a company that will pursue them vigorously?
I'd be happy to get a couple of hundred quid (it's probably £200 more than I'll get otherwise) if I can be sure that the company in question will be given the aggravation of, say, a CCJ and made to cough up the cash they owe.
The new version of small claims court. Cheap, easy and quick. I’ve used it with success. Get started now! You know they’re not going to pay otherwise.
https://www.moneyclaim.gov.uk/web/mcol/welcome
https://www.moneyclaim.gov.uk/web/mcol/welcome
Make sure you claim for all the relevant interest & late payment fees - often overlooked!
I recommend this guy, long-standing mate of mine and really knows his onions. Col at www.tridentrecovery.co.uk
I recommend this guy, long-standing mate of mine and really knows his onions. Col at www.tridentrecovery.co.uk
Thank you, that's an interesting website.
If you have not sent your terms and conditions to your customer, you could find out that you are working under their terms and conditions.
This is where I may fall down a bit, I've not got any of those! Agree a job, agree the price and off we go. It's worked absolutely fine for years and years, but maybe I should try and be a bit more professional.
If you have not sent your terms and conditions to your customer, you could find out that you are working under their terms and conditions.
This is where I may fall down a bit, I've not got any of those! Agree a job, agree the price and off we go. It's worked absolutely fine for years and years, but maybe I should try and be a bit more professional.
Ari said:
I run a small company, and business is mostly done fairly casually on the basis of an email setting out what we do and what we charge and the other party agreeing to it. It's worked very well for many years and we have always been paid.
However we did a job for a company middle of last year (July) which cost about £1,500 over three months, invoiced it monthly as usual and simply never got paid. I've chased it up, had promises, but still no money. The last promise was last week which was 'it's definitely in Friday's payroll, sorry for the delay'. Needless to say, no sign of anything.
Now I could go down the Small Claims route, but it's not a massive amount of money and I really don't have the time or the inclination. Which, I suspect, is what they're banking on. But I also don't want to simply let them get away with it because companies that shaft small businesses are the lowest of the low.
So, given that I'm not that bothered about the amount we recover, I just want to force them to pay it (and ideally some costs on top), is it possible to pass on or sell the debt to a company that will pursue them vigorously?
I'd be happy to get a couple of hundred quid (it's probably £200 more than I'll get otherwise) if I can be sure that the company in question will be given the aggravation of, say, a CCJ and made to cough up the cash they owe.
We're trialling Jack Russell at the moment. They do it for 20% of the debt recovered + VAT. You'll pay court fees, obvs.However we did a job for a company middle of last year (July) which cost about £1,500 over three months, invoiced it monthly as usual and simply never got paid. I've chased it up, had promises, but still no money. The last promise was last week which was 'it's definitely in Friday's payroll, sorry for the delay'. Needless to say, no sign of anything.
Now I could go down the Small Claims route, but it's not a massive amount of money and I really don't have the time or the inclination. Which, I suspect, is what they're banking on. But I also don't want to simply let them get away with it because companies that shaft small businesses are the lowest of the low.
So, given that I'm not that bothered about the amount we recover, I just want to force them to pay it (and ideally some costs on top), is it possible to pass on or sell the debt to a company that will pursue them vigorously?
I'd be happy to get a couple of hundred quid (it's probably £200 more than I'll get otherwise) if I can be sure that the company in question will be given the aggravation of, say, a CCJ and made to cough up the cash they owe.
I'm not a legal eagle (perhaps worth asking about this on the Speed, Plod and the Law section), but AFAIAA if you have agreed terms re scope of the job and payment and time period for the work to be done etc and they have instructed you, that will serve as terms which have been agreed. Both parties have intended to enter into a legally binding agreement.
A quick note (speaking from experience) - do some checks to determine if the company is on its knees before you embark on spending money to recover the debt. If they're weeks away from liquidation then all you'll be doing is racking up more costs. As long your invoice is in the system, you may get something following the liquidation process but in this situation, best to make piece with the fact that you'll not see the money.
But if they are financially sound, pursue it will all your might. I pay invoices the day I receive them - or the next day at most. If I can do this I fail to see why much larger companies don't.
If you fill up with fuel and drive off without paying, even if you intend to drop the money back later, you'll be done for theft. I've long considered that companies who don't pay their bills on time are also essentially thieves.
But if they are financially sound, pursue it will all your might. I pay invoices the day I receive them - or the next day at most. If I can do this I fail to see why much larger companies don't.
Bluesgirl said:
I'm not a legal eagle (perhaps worth asking about this on the Speed, Plod and the Law section), but AFAIAA if you have agreed terms re scope of the job and payment and time period for the work to be done etc and they have instructed you, that will serve as terms which have been agreed. Both parties have intended to enter into a legally binding agreement.
This is indeed true but sadly has little influence on many companies.If you fill up with fuel and drive off without paying, even if you intend to drop the money back later, you'll be done for theft. I've long considered that companies who don't pay their bills on time are also essentially thieves.
Louis Balfour said:
We're trialling Jack Russell at the moment. They do it for 20% of the debt recovered + VAT. You'll pay court fees, obvs.
I genuinely read that asWe're training a Jack Russell at the moment.
It lead to a brief sitcom-esque vision of a trained Jack Russell being released into the offices of ABC Debtor Limited, where it would either sink its teeth into the MD or start humping the leg of the Financial Director until payment was forthcoming.
Bluesgirl said:
I'm not a legal eagle (perhaps worth asking about this on the Speed, Plod and the Law section), but AFAIAA if you have agreed terms re scope of the job and payment and time period for the work to be done etc and they have instructed you, that will serve as terms which have been agreed. Both parties have intended to enter into a legally binding agreement.
That's my understanding (but again, not a legal eagle). We have emails agreeing everything and the latest email was promising to pay (last Friday) so I think we're reasonably good. It's just deciding whether to use a collection agency or go the small claims route (hence the thread).
StevieBee said:
A quick note (speaking from experience) - do some checks to determine if the company is on its knees before you embark on spending money to recover the debt. If they're weeks away from liquidation then all you'll be doing is racking up more costs. As long your invoice is in the system, you may get something following the liquidation process but in this situation, best to make piece with the fact that you'll not see the money.
Good advice. Their last company accounts (31st July 2021) show cash at bank and in hand as over £400,000, and the same for the previous year, so hopefully got something worth going after. Junglebert said:
The new version of small claims court. Cheap, easy and quick. I’ve used it with success. Get started now! You know they’re not going to pay otherwise.
https://www.moneyclaim.gov.uk/web/mcol/welcome
First of all email them with the moneyclaim link above and state this is your last chance and if you aren't paid within 7 days you'll be completing the claim and they'll be liable for any additional costs. I've used this service before and got paid straight away. I've also threatened another company and they paid within the 7 days. https://www.moneyclaim.gov.uk/web/mcol/welcome
My comment was in response to your concern over not having 'formal terms and conditions'. I don't think that's necessary for you to have entered into a contract with them, but I stand to be corrected.
I'd go down the Money Claim route. Junglebert says it's quick, it'll cost you £80 to get started but you can write and tell them you've started a claim and that your costs will be £80 + interest at 8% pa on the debt from when it became overdue (as per MC website). Then they're welcome to take their sweet time over it and watch the debt accumulate, or pull their finger out.
I'd go down the Money Claim route. Junglebert says it's quick, it'll cost you £80 to get started but you can write and tell them you've started a claim and that your costs will be £80 + interest at 8% pa on the debt from when it became overdue (as per MC website). Then they're welcome to take their sweet time over it and watch the debt accumulate, or pull their finger out.
I bit the bullet this morning and sent a formal email informing that we would now be chasing the full amount plus costs and interest through the MCOL.
Full payment was deposited in my bank 7 minutes later!
There's a lesson for me here about not letting these things slide (although to be fair, this is the only one we've had since starting well over a decade ago).
Huge thanks to all who replied and helped. It worked!
Full payment was deposited in my bank 7 minutes later!
There's a lesson for me here about not letting these things slide (although to be fair, this is the only one we've had since starting well over a decade ago).
Huge thanks to all who replied and helped. It worked!
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