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Money owed by a client.

  • 129 posts
  • # 112536

Hi everyone,

I have completed some work for someone and and he has paid me a lump sum with the remainder paid off in installments. To cut a long story short he has since dispensed with my services with a significant sum still outstanding. Dispite him paying £40 towards the total, I am still owed a three figure sum. 

He  has  not made a complaint against the work I have done, or I have yet to receive a complaint.

Even though I have sent a few emails reminding him of the fact he still oews me money, he is now complaining about the fact that I am harrassing him for the money and threatened legal action. As far as I am concerned I have a perfect right to ask for the money owed and I now feel that he has got no intention of paying me.

Can anyone out there offer any advice please? I understand that there are legal compensation fees I can charge for non-payment, but i did not include these in my letter of engagement when I took the client on. Would I be allowed to follow this route?

Any advice would be appreciated.

Kind Regards,

Andrew Fleming - AJ Bookkeeping Services.

  • 129 posts
  • # 112537

Rockyfleming said:

Hi everyone,

I have completed some work for someone and and he has paid me a lump sum with the remainder paid off in installments. To cut a long story short he has since dispensed with my services with a significant sum still outstanding. Dispite him paying £40 towards the total, I am still owed a three figure sum. 

He  has  not made a complaint against the work I have done, or I have yet to receive a complaint.

Even though I have sent a few emails reminding him of the fact he still oews me money, he is now complaining about the fact that I am harrassing him for the money and threatened legal action. As far as I am concerned I have a perfect right to ask for the money owed and I now feel that he has got no intention of paying me.

Can anyone out there offer any advice please? I understand that there are legal compensation fees I can charge for non-payment, but i did not include these in my letter of engagement when I took the client on. Would I be allowed to follow this route?

Any advice would be appreciated.

Kind Regards,

Andrew Fleming - AJ Bookkeeping Services.


 

  • 794 posts
  • # 112540

Hi Andrew,

Firstly, not much point in adding late payment compensation if he is refusing to pay you what he already owes you.

I always put a clause on my invoices stating late payment fees will apply - see http://payontime.co.uk/

I don't have many late payers but if they have not paid by the due date I email a statement - if no response within 7 days then send a letter by Recorded Delivery - if no response within another 7 days send a final letter by Recorded Delivery advising court action will be taken and they will be responsible for court costs. If no response then proceed with court action.

The longer you let a debt go unpaid the less chance you have of being paid.

I am in Scotland so the law may be different for you.

If you are able to raise a small claims summons in the court then do it - only cost me £71 plus £35 to my solicitor for filling out the relevant form which I handed into the court.

Client paid up the minute he got the summons so then I claimed for court costs etc and he promptly paid that too!

Fortunately, the only client I have had like this in 10 years and it was a Ltd Co.

Sorry can't help you further unless you take the 'heavies' round to his house! (only joking by the way as that would be harrassment!)

Marilyn


  • 129 posts
  • # 112544

Hi Marilyn,

Thank you very much for your response. Yes, I have feeling I am going to have to go legal if I wish to recover the  money, but before I do, I want to make sure I am going to win before I go down that route. It is a Ltd Co, however, I do not believe he has read the emails I have sent him, as although he still owes me, where I have given him the opportunity to pay the debt outstanding in installments. I am left with the feeling that he does not want to pay the money owed.

The debt itself is not that old, but since he has seen fit to dispose of my services, I have taken the decision to recover the money owed. I may contact Member Services, and see what they have to say about the matter.

Kind Regards,

Andrew Fleming

AJ Bookkeeping Services.

  • 141 posts
  • # 112545

Have you only contacted him via email or have to telephoned him too?  Sometimes emails can be read in the wrong way whereas a phonecall can sometimes seem a little less pushy once they hear the tone of your voice.  If you haven't phoned him yet, I would be inclined to do so just to try smooth things out a little and to also get a definite  answer as to whether he is going to be paying the remainder of your invoice.  At the moment you are just guessing that he isn't going to pay without having any actual proof of that.  If he does say that he isn't going to pay then definitely begin court proceedings in order to claim it back (and get some advice from the ICB legal helpline too).  However, you might find that one phonecall will sort everything out for you.  Best of luck!

  • 129 posts
  • # 112550

Hi Jennifer,

I tried to ring him yesterday without any response, I have tried texting him and ringing him before without much response and found that email is the best way of contacting him. No he either wants to talk to me or he does not. I will be intouch with the ICB tomorrow.

Kind regards,

Andrew Fleming,

AJ Bookkeeping Services.

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  • 119 posts
  • # 113969

Having viewed this thread and another similar, I was wondering what the outcome was for Rockyfleming (success I hope). My firm took an ex-client to Court earlier this year and 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 08:18 PM GMT

Edited at 16 Oct 2016 08:19 PM GMT

Edited at 16 Oct 2016 08:21 PM GMT

Edited at 17 Oct 2016 06:43 AM GMT

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