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Client refuses to pay!

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  • # 100804

I am looking for advice on small claims. I have taken an ex client to small claims court for non payment but I really dont know if it was the right thing to do. I cant go into too much detail but would appreciate any comment son experiences people have had with this subject.

  • 3 posts
  • # 100806

loops said:

“I am looking for advice on small claims. I have taken an ex client to small claims court for non payment but I really dont know if it was the right thing to do. I cant go into too much detail but would appreciate any comment son experiences people have had with this subject.”

 I have only had a problem with one existing client.  When they requested their paperwork to be returned I refused until payment was sent and cleared.  Small claims is another option and would certainly have done the same.  The courts are sympathetic to small businesses  and often the defendant will settle in advance to a hearing.

 

Good luck 

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  • # 100831

Traciebel@aol.com said:

loops said:

“I am looking for advice on small claims. I have taken an ex client to small claims court for non payment but I really dont know if it was the right thing to do. I cant go into too much detail but would appreciate any comment son experiences people have had with this subject.”

 I have only had a problem with one existing client.  When they requested their paperwork to be returned I refused until payment was sent and cleared.  Small claims is another option and would certainly have done the same.  The courts are sympathetic to small businesses  and often the defendant will settle in advance to a hearing.

 

Good luck 


 The client this relates to I was working on their premises so unfortunately that was not an option.  Thanks for comments. Just looking for reassurance that I had done the right thing I think. I don't think I will know until the result comes in from the courts. 

 

Thanks Again

 

Louise

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  • # 100832

Hi Loops

 

Has the client provided any grounds on which they are refusing to pay?

 

Do you have anything approaching a written contract with them, thta they have signed?

 

Phil

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  • # 100843

PhilCo said:

Hi Loops

 

Has the client provided any grounds on which they are refusing to pay?

 

Do you have anything approaching a written contract with them, thta they have signed?

 

Phil


 Hi Phil

The client had a previous bookkeeper who made a number of errors even though they had 23 years experience (who he sacked). The business was bought outright, so the accounts would have been fresh accounts. There was also another lady, self employed, to cover the payroll who came in after myself as I am not qualified to run payroll.

The issue really was there were items/errors on the system like for example when he hand wrote his sales invoices the amounts were different on sage accounts as the adding of the VAT can fall short or be 1p more in difference!!! I knew these items were there and was prepared to balance these off whilst doing the year end!!Also until the payroll clerk came in I used the nominal code 7004 regular wages for the employees so I could balance the bank account, to which I informed the payroll clerk.

 

Did I do anything wrong?? This caused me to end my practice, with the acception of one client as they are friends, and go into employment again as the stress is too much too bear.

 

I have a letter of engagement and also the correspondence after he refjsed to pay.

 

What do you think??

 

Thanks

 

Louise

 

 

 

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  • # 100850

It doesn't sound like you have done anything fundamenatlly wrong. Is the client claiming loss (i.e. having to pay another bookkeeper to put something right which you did)? How much are we talking about here in terms of the outstanding fee? And you are certainly not to blame for errors made by previous bookkeepers.

  • Member PM.Dip
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  • # 100853

Hi

My advice to you is  - if you've done nothing wrong, issue a county court summons. It cost £60 which you get back if you win the case. Keep all correspondence relating to the client, They should give you the opportunity to corect anything they feel is wrong so if they haven't issue a 'Final letter before court' and start the ball rolling. Prepare to go to court if necessay but I recently had a client who paid up as soon as the summons was issued (they don't want to end up with a CCJ against them), and courts are sympathetic to small business's. Too many think they can ask you to do something and then when you've invested your time and effort they think they can get away without paying.

good luck and keep us posted as to how it turns out Smile

CAP

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  • # 100854

PhilCo said:

“It doesn't sound like you have done anything fundamenatlly wrong. Is the client claiming loss (i.e. having to pay another bookkeeper to put something right which you did)? How much are we talking about here in terms of the outstanding fee? And you are certainly not to blame for errors made by previous bookkeepers.”

Hi,

He has decidedcounter claimed but I have letters i sent and vice versa and the last he doesn't even respond. I think he believes I have done something wrong but if so he hasn't even allowed me to take a look properly with himself and then given me the oportunity to rectify errors, if there are indeed any. I have submitted the paperwork and will keep you all posted.

 

Thanks for your comments

  • 8 posts
  • # 100905

Hello

Having worked as a court officer and then re-trained as a book-keeper, I would say continuing with small claims court is the way to go.  Often if I client decides at the last moment they are in the wrong they will not turn up on the day and the court may find in your favour.  You may however be asked to go back for a new hearing which will cost you in time. 

On the day if thing are not clear cut the sheriff may ask you to come to an amicable agreement.  Believe me when I say I have had to bring people back from anti rooms where there has been tension you could cut with a knife.  The sheriff will help to mediate and in most cases will try to come to a solution on the day to avoid any party coming back to court.  Take you folder of evidence with you, stay positive and state your case clearly to the sheriff when asked.  The normal procedure is that you will sit in court as cases are called.  Observe what others are doing, this will be hard because you will be nervous.  You will be called to the front at some stage and the sheriff will ask a few questions about your case.  Try to be as clear and to the point as possible, dont go in to too much detail.  What I have observed most is that often people try to cram all the detail in a few minutes.  Just keep your statements clear and to the point, you can back up with your evidence if needed.  Just have it ordered so you can quote from it when asked. The whole process will be over in about half an hour.  Good luck.

 

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  • # 113968

Having viewed this thread and another similar, I was wondering what the outcome was for loops (success I hope). My firm took an ex-client to Court earlier this year and I read with interest the comments made by moyo, as my experience was somewhat removed from the account given by moyo - though I do appreciate court procedures may have moved on.

I think it would be valuable for Members in Practice to recount my experience here, as the Court "service" hasn't filled me with a great deal of confidence in the "Justice" system.

The court appointent was set, but when we turned up on the relevant morning we were told we could be waiting a number of hours because the judge (who the case had been listed with) was sitting another case. We were told that the court double books cases, in case parties don't turn up. In the event we were seen by another judge who initially tried to conduct some mediation I informed him (as was evidently unaware) that the court had previously passed our case for mediation before and we were unable to reach agreement.

That established, the judge then went on to talk about adverse costs (in the small claims??!!) and, get this, the ex-client had hired a barrister who would have cost a muliple of the unpaid fee we were seeking to recover! The judged suggested (what was quite obviously a 'finger in the air') settlement figure and we were released over lunchtime with a very strong inference that we were expected to come back having reached a settlement.

We reached a settlement over the lunch period and returned to see the same judge who signed off, what I understand is called, a Tomlin agreement. He then addressed me, saying (something along the lines of): "it's not for me to give advice, but I suggest these things are better dealt with over a cup of coffee and a croissant". I pointed out that I had made numerous attempts to reach settlement before the matter ended up in court.

It has since dawned on me that the judge directing the hearing to matters of mediation and adverse costs, was a misdirection from the fact that he had not given the case papers any more than a cursory glance and was not wanting to look any other than omnipotent. I believe had we been in front of someone who had throughly equipped themselves with facts, the matter would, indeed, have been over with in half an hour, and in our favour.

I'm very interested in other members experiences as if there is some commonality, I think we should do something about this. I've noticed how this, and other similar posts have gone quiet and it intrigues me.



Edited at 16 Oct 2016 08:22 PM GMT

Edited at 17 Oct 2016 06:45 AM GMT

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