Collection Issues

Hey folks...

Looks like I may be having problems with collecting on an almost 3k debt. My partner, Mr. Majors, happens to subscribe to PrePaid Legal who has reviewed my correspondence with this contractor and believes we can bring a case to successful outcome though I will have to pay a percentage of the recovered funds as a fee LOL.

This fellow is over 30 days past due on almost 2400 and within 30 days on about 600. I have it on good info that he is paying his other people but keeps putting my payment on the 'backburner'. I am not posting his name and company because I am still giving him the opportunity to 'make good'.

I have not levied any late payment fees as a gesture of good will, this is in addition to the fact that I saved this fellow quite a bit of money by working at a reduced rate, rearranging my schedule to accomodate several "emergency" situations, and completing the assignments rapidly and at considerable discomfort to myself and my agents. Needless to say this subject is burning his bridges with me.

I have only been stiffed once in the past several years and that was for less than a hundred bucks, in addition all the other individuals I deal with I usually receive payment upon delivery unless I'm dealing with someone I know / trust.

The question I have for you all out there is this:

What proceedures do you guys/gals use with late payers?

How long do you wait to refer to an attorney, if you use one (while I do not like the idea of paying an attorney almost half of what I am owed, I guess a percentage of something is better than a hundred percent of nothing)?

If you do not use an attorney and instead use some type of collection agency... which one and are the fees reasonable?

_________________
-The Solution-
Indiana Agency #: PI20700211
Indiana Notary Public - Exp: 12/20/13

"Be without fear in the face of your enemies. Be brave and upright that God may love thee. Speak the truth always, even if it leads to your death. Safeguard the helpless and do no wrong. That is your oath."
- Kingdom of Heaven

Don,
We hold a collection license in the State of Indiana, Almost all collection agencies charge 30% of the amount collected on accounts up to 90 days old, more on older accounts. If i may ask is this a in state company or an out of state company? I will be gone Friday until Monday but when i return i will be glad to fire of a collection letter on your behalf our i will assist you in collecting the debt owed you for free as a favor to a friend and brother PI. I get a case of the red Ass when someone beats one of us out of our pay.

_________________
The Rose Investigations LLC
Collection Agency
Security & Investigations Consultant
Retired Private Investigator & Bail Enforcement
NAM VET 1969- 1975 US Army (RECON)
Office 260-220-3877
1-888-631-5520
Fax 260-456-6062

Don,

Normally my procedure for new clients/unproven clients is as follows:

1) Written contract specifying everything, including collection issues, attorney fees, late fees, etc. signed and notarized.

2) Some form of down payment or retainer

3) A promissory note signed and notarized specifying payment arrangements/dates etc.

I treat it just like 1 of my pi cases. As a pi I always have a signed contract and a retainer paid in advance (like an attorney) that will basically cover the majority of labor and expenses.

I too have been burned by former clients. No more.

For example, if an unknown surety company or bondsman wants to hire me to recover someone, then it is standard protocall to have the funds placed into an escrow account in advance to guarantee payment upon delivery of the fugitive.

Second option, is once I have the fugitive in custody but I have to extradite them a long way, then you can submit proof of custody to your client and request that 50% of the recovery fee be wired or overnighted to you before you begin extradition. If they refuse either of these, especially on really large bonds, then you can simply release the fugitive for non-payment of services rendered.

3rd option: Sue. You have breach of contract, Unethical business practices, and whatever else your attorney's may come up. Often times a simple "letter of intent" written by an attorney is enough to compel payment from your debtor.

You being a company yourself, you can also explore filing a grievance against this person through the BBB, chamber of Commerce, State Attorney General's office-Div of Consumer Affairs, Interstate Commerce Div (since your work involved crossing state lines), The Sheriff's office where the contract was signed, the DA's office -since a crime was committed-Theft of Services, etc.

You can also take out a full page ad in the debtor's hometown sunday newspaper stating the truthful facts: This individual owes money for lawful services rendered and you hereby advise and warn all interested parties to be wary of doing business with him.

Yes, that is legal. Do not defame, libel or slander him. Keep it honest and provable. The last thing anyone wants is there name out on front street in a negative manner.

I hope this helps.

Ruffin.

_________________
River City Associates
Decatur, Al. 35601

David,

Thanks for the offer to help! I may have to take you up on your offer, with one small change... your fee must be paid While I wouldn't mind accepting a slightly reduced rate... say 20/25 percent... I can not in good conscience have you working on my behalf without some type of compensation. The company is out of state (California) but I made all agreements from the comfort of my living room here in Indiana (and so I'm told I can file my claim here in Indiana). I have decided to give him to the end of the week to make good on his debt at which point I will begin pursing the course of action suggested by Ruffin first.

In addition I shall be contacting the Companies/Contractors he is contracting with to ascertain if he has received compensation from them for the assignments I performed (though I am saving this for last as I am told these types of agencies may withdraw their business from him if they get wind of any type of "appearance of inpropriety" and I don't want to reduce his ability to pay me at this time).

Then I shall then require your services as a collection agency... though I am hoping this whole mess doesn't have to go past this weekend.

You guys have been great on providing options and definately one of the reasons I love this site.

_________________
-The Solution-
Indiana Agency #: PI20700211
Indiana Notary Public - Exp: 12/20/13

"Be without fear in the face of your enemies. Be brave and upright that God may love thee. Speak the truth always, even if it leads to your death. Safeguard the helpless and do no wrong. That is your oath."
- Kingdom of Heaven

Don,

I too perform collections for various clients, both local and national. I am a licensed repossessions specialist, BEA, and PI.

I have attended several seminars and training programs that instruct us on all of the applicable federal, state, and city laws.

I also have contacts all over the country should you need an "on-the ground" asset in your debtor's area.

Please feel free to call upon me if I may be of any assistance.

Professional regards,

Thanks Bloodhound!

I am hoping to resolve this in an amicable manner but should I find myself in need I shall holler!

Feel free to do the same if there is anything I can asisst with as well.

_________________
-The Solution-
Indiana Agency #: PI20700211
Indiana Notary Public - Exp: 12/20/13

"Be without fear in the face of your enemies. Be brave and upright that God may love thee. Speak the truth always, even if it leads to your death. Safeguard the helpless and do no wrong. That is your oath."
- Kingdom of Heaven

Don I know who you are talking about and both my people are still waiting for their money--

as far as collecting on out of state debt i file in my state in small claims if under 5000.00 get the judgement plus court costs and any fees--i than ask the sheriff to file the judgement with the state that the debtor lives in and ask for an exacution of judgement-if viable in that state

Thanks Hadley.

I just spoke to him today and he says by the end of this week. David will be calling me Monday evenining and if he hasn't paid by then, then I will let David handle it. At which point he will have to pay the collection fees per Indiana law as well as the original debt.

I must confess of course that I share some personal (non legal) blame for allowing the debt to get that high but up till now I had no reason to believe he would be a "slow-payer".

He called me today and we had a good long talk. He is saying he is going to pay me by the end of this week and that he was not stalling. As they say, the proof is in the pudding so we shall see. I will definately advise if he has made good on his promise.

I hate to do this but I have got bills to pay and I had to cover the payment to my associate who worked with me.

I have gotten a lot of great advice from Dave and Ruffin and hopefully I will not have to put that advice to use.

On a side and more productive note...

situations like these should be prepared against by individuals new as well as old in the business. I have been pretty lucky as I have a pretty easy going way about me (a comment from a friend who is much more experienced in this biz then I, is that I am being a little too reasonable) and have only been stiffed once by a bondsman out of ohio, and that was for less than a hundred bucks...

I learned a lesson then and have always demanded payment either upon delivery or within 15 days. I have since extended it to 30 days but in this case I allowed it go further and did not heed my previously learned lesson.

This business isn't only about catching bail jumpers... it's also about managing a business and being "business minded".

A good learning experience and an example of the many facets of the industry.

_________________
-The Solution-
Indiana Agency #: PI20700211
Indiana Notary Public - Exp: 12/20/13

"Be without fear in the face of your enemies. Be brave and upright that God may love thee. Speak the truth always, even if it leads to your death. Safeguard the helpless and do no wrong. That is your oath."
- Kingdom of Heaven