I have not been paid, what shall I do

[dksanders]

If I have a customer who doesn't pay, I don't mess about but go directly to MCOL. It's painless, adds the cost to the debtor, and once they get the court paper work through, it often scares them into paying. If they don't pay, not only do they end up with a CCJ against them, but if they try to sell the property, raise money against it etc, the Land Registry will flag up that there is an outstanding debt on it which will have to be settled first.

However, I can't understand why you left it so long, don't do so again; however you have 6 years to get his sorted so do so now, hit him with MCOL, do not use a solicitor unless MCOL fails as you'll be paying through the nose for something that can be done without that extra cost.

 

[sham]

If I have a customer who doesn't pay, I don't mess about but go directly to MCOL. It's painless, adds the cost to the debtor, and once they get the court paper work through, it often scares them into paying. If they don't pay, not only do they end up with a CCJ against them, but if they try to sell the property, raise money against it etc, the Land Registry will flag up that there is an outstanding debt on it which will have to be settled first.

However, I can't understand why you left it so long, don't do so again; however you have 6 years to get his sorted so do so now, hit him with MCOL, do not use a solicitor unless MCOL fails as you'll be paying through the nose for something that can be done without that extra cost.

Can you please explain the process.

 

[telectrix]

read this:
Make a money claim online - https://www.gov.uk/make-money-claim

 

[kjw32]

Have twice used the small claims court. Is simple if not a bit daunting on the day. On both occasions the judge is looking for flaws on each side. If you've been truthful you have nothing to fear. I have come away winning both times with the other party clearly having to lie to try and win. The judges's are not fools and will not let someone get away with not paying for work done correctly. Use all your emails and text's in your evidence.

 

[Marti]

WOW! Typed "debt collection" into the EF search and immediately realised this a bigger issue than our old favourites - "Which MFT, What Van and Why Apprentice". Should probably be in the OUR training. I'll read the above carefully before taking action. Essentially, I now have a situation with good records and high enough value to be worth retrieving. I'm an ST, subbed to a small Ltd. All work attended was notified by email to me daily. Invoiced from Quick books monthly with an Excel sheet detailing expenses et-cetra.

My wife's in and out of hospital, being tested for Leukaemia ATM so going use this period to nail down a process for future use - no more business on a handshake.

Advice and experiences appreciated.

 

[baldelectrician]

For anything above what you can throw away (£100) I send a quote in writing with terms and conditions
I also record telephone calls (and clients know this) which helps.
I had a client two months ago who refused to pay a £46 bill, I sent him a 7 day notice telling him he would be taken to court after the specified date
He paid at 10.50 at night - 2 hours before the expiry of the 7 day notice.

 

[dksanders]

Wether I've given a written quote (which always has my T&C's attached) or a verbal one, I always send a written invoice, with payment due on receipt (I'm not rich enough nor in the game of, providing credit to people). If that's not paid I use MCOL, the costs of which, plus interest, are added to the summons the court issues. I'm running my electrical business, I haven't time to waste chasing debtors so let MCOL do it for me.

 

[Dan]

WOW! Typed "debt collection" into the EF search and immediately realised this a bigger issue than our old favourites - "Which MFT, What Van and Why Apprentice". Should probably be in the OUR training. I'll read the above carefully before taking action. Essentially, I now have a situation with good records and high enough value to be worth retrieving. I'm an ST, subbed to a small Ltd. All work attended was notified by email to me daily. Invoiced from Quick books monthly with an Excel sheet detailing expenses et-cetra.

My wife's in and out of hospital, being tested for Leukaemia ATM so going use this period to nail down a process for future use - no more business on a handshake.

Advice and experiences appreciated.

So sorry to hear about wifey. Hope she's okay.

It always worries me when I see threads like this. I'm glad this one is from 2018 and not a fresh one, which worried me for a second then!

Well worth always talking about so that people are aware. So good on you for replying to it.
[automerge]1568997543[/automerge]

Wether I've given a written quote (which always has my T&C's attached) or a verbal one, I always send a written invoice, with payment due on receipt (I'm not rich enough nor in the game of, providing credit to people). If that's not paid I use MCOL, the costs of which, plus interest, are added to the summons the court issues. I'm running my electrical business, I haven't time to waste chasing debtors so let MCOL do it for me.

That's the way to go these days.

 

[Marti]

Returning to this as neither my August or September invoices have been paid or challenged. One of the themes that ran through this was "act without delay" so that's what I'm doing. One polite reminder and a communication to Thomas Higgins (mentioned above).

Thank you for the advice and kind words about wifey's leukaemia results - still testing.

 

[SparkyHarry]

Returning to this as neither my August or September invoices have been paid or challenged. One of the themes that ran through this was "act without delay" so that's what I'm doing. One polite reminder and a communication to Thomas Higgins (mentioned above).

Thank you for the advice and kind words about wifey's leukaemia results - still testing.

Sorry to hear about your wife and that you are still chasing payments. I usually send a recorded letter or email. Then you have proof of your communications.

 

[Marti]

As suggested above, I've now raised a case with Business Debt Collection & Recovery Solicitors | Thomas Higgins Limited - https://www.thomashiggins.com/

The website takes a few basic details and there are two starting points. In plain English, The letter before action chasesfor just the debt amount but if you wish to issue and add on compensation and interest then the late payment demand letter can be issued.

I'll report back on how it goes so others can make a decision as to whether their service suits.

 

[Risteard]

As suggested above, I've now raised a case with Business Debt Collection & Recovery Solicitors | Thomas Higgins Limited - https://www.thomashiggins.com/

The website takes a few basic details and there are two starting points. In plain English, The letter before action chasesfor just the debt amount but if you wish to issue and add on compensation and interest then the late payment demand letter can be issued.

I'll report back on how it goes so others can make a decision as to whether their service suits.

Why are you not demanding statutory interest and compensation?

 

[Marti]

Why are you not demanding statutory interest and compensation?

Oh, I certainly am
The way the, very wordy, website explains it - if you wish to retain a working relationship with the debtor then a letter-before-action is a firm nudge without legal action. If you just want to get paid with a little comp' added then go straight to legal and the late-payment-demand is the way to go!

There were a number of excellent suggestions in this discussion and I chose this one but we'll see how it goes and I'll report back as it appears to be something every trade goes through.

Interestingly, I have only ever had problems when subbing to other sparks operating two or three sub's. My current contractor has been excellent but he is the exception, not the rule in my experience.

 

[SparkyHarry]

Oh, I certainly am
The way the, very wordy, website explains it - if you wish to retain a working relationship with the debtor then a letter-before-action is a firm nudge without legal action. If you just want to get paid with a little comp' added then go straight to legal and the late-payment-demand is the way to go!

Do you wish to retain a working relationship though? What if it happens again?
Its not fair on you to have to go through this, even if you do get your money and a little compensation, he still gets away with it.

 

[Marti]

Certainly not planing to maintain any connection with the debtor-contractor; why would anyone put themselves in that position twice! One of the risks others need to be aware of is how big and fast the costs mount up to collect a debt. As well as the debt, I'm now owed hundreds in costs so can not afford to let this go at nearly £6k. Unravelling the layers of limited company and who's a director will probably cost more. Starting to look at £20-30k PAYE as a good, reliable deal. Be careful out there guys; it's not just the amps that bite you in the a**e!