Chasing Bad Debts - Debt Collection Agencies

Lorz said:
I'm surprised you're looking for names - we're being hounded several times dailly with Credit Control companies looking to speak to the owner/MD!
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You'd better start paying the bills so. ;)
 
Two questions:

1. Typically, how much should one expect to pay for a solicitor's letter?

2. If it gets to that stage, do others pursue this cost also? e.g. If, having issued a solicitor's letter, you receive a cheque for the invoiced amount, do you return it uncashed with a bill for the total including the cost of the solicitor? Or do you cut your losses?

I almost never have bad debts. I've got one at the moment for about €1800 and he is annoying me to the point where I'm tempted to screw him for my legal costs too ( though I haven't instructed a solicitor yet).

Will try the registered letter first though.

Thanks.

D.
 
Registered letter has had no effect yet.

I'll give them until next week and then send a solicitor's letter.

This is so(!) time consuming!

D.
 
I seem to have to "take a day off" every six weeks to chase money. I always call to where the person works/lives and I find it works in most cases. I try not to think about money owed unless I'm actively chasing it, otherwise you would be driven mad.

As it's been said already, It is par for the course and thankfully most people pay their bills on time with no hassle.
 
DavyJones said:
thankfully most people pay their bills on time with no hassle.
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I agree with you here.

I have always worked to the honour principle being that 99% people will pay their debts when presented with the bill so I do everything possible to get the job done right in order to have the job up to scratch ie I honour my half of the agreement even though I never know if I'll be stung.

I never needed a written contract because 99% of the people who I dealt with have been decent and upstanding and I have always gotten paid.

However there is the 1% who are scumbags have no morals whatsoever and will think up any excuse whatsoever not to pay you what you are entitled to.

Having recently been stung for over a thousand euro I'm revising my ways to ensure people know they will owe me interest after 30 days and having read some of the links there will be other costs involved as well.

So in 30 days I'll be owed over a thousand euro plus interest and a flat fee of €70 plus legal costs, if that is not met then I'll go to the commercial court where I'll get a judgment against the people concerned.

This ought to mess up their credit rating too!

I don't have time to be chasing people to pay me my money, I've done the work I should get paid. In full.

End of rant.
 
Luckily in the industry I'm in we are able to require 100% payment up front, or at least to cover the first amount of work (and then we simply don't work beyond that until we receive second payment). We've lost the *very* odd client due to this but the impact on our bad debts has been worth it - we simply haven't had any in the past six years and do not spend huge resources chasing it down. We made a decison that there is such thing as "bad business" and we are happy to lose it. You have to market hard enough to have more sales opportunties than you need in order to be able to do this though! Maybe there is a structure you can work within similar to this?
 
Hi ,
I have small outstanding debts that are not worth paying a solicitor to reclaim .
I was told by the court service that you can do this yourself.
I did my own divorce and the procedure is similar using the same court forms found at www.courts.ie. I still need exact advice to have everything correct as a judge is never too happy about a lay person in court.
Any help appreciated.
Atkin
 
did anyone hear all the chat on the Joe Duffy this week in relation to Briddock O'Sullivan Debt Collection company ? They sound like some outfit . i dont think....
 
For the record: -

A business can't charge legal costs to a consumer, only to another business. A district judge will only enforce payment of the bill. Never costs.
 
I work in Credit Control for my company. Its a pain but am glad of the work to be honest.

Calling Calling and more calling is what works in my opinion. Always and I mean Always record every conversation with a customer.

Ex: 08/12 09.08am

Spoke to Jimmy in Accounts

Jimmy said he would do out a cheque for outstanding invoices for the sum of 100e on Friday 11/12 and will post that evening.

Always confirm:

Amount owed with customer
When payment will be done
When payment will be posted.

Record this in every conservation. If customer miss the payment then you can go back to them and state well I spoke to you on the 08/12 and you said you where doing payment on Friday, that was the arrangements you made, you miss that and therefore send on payment this evening as you agreed last week.

Also we allow payment plans to be set up with customers whereby the customers spreads the debt over 4 weeks say with 4 post dated cheques.

Also calling into the customer works as well. If you have reps on the road then they should contact their customers a couple of days in advance stating am due to call next week, "the account is € X have a cheque ready unless there is any queries which I will go through with you then and then afterwards you can settle up the account".

We have a UK operation as well and there is no one over there doing my job because in the UK and European the consenus is you pay your bills on time. OK the manager spends a couple of days ringing the odd customer but nothing to the extent that is required with Irish customers.

I also find you need to be tough with Irish customers and dont be afraid to be tough but polite and professional. Do not swear and threaten people. Irish attitude is attack is the best defensive or igornace is bliss. Dont let this happen. Remind the customer they where the ones who made the arrangements and its their repsonsibility to fulfill it.

Finally, every year you should set out a credit contol bad debt target. "Bad Debts can be no more than 2% of annual sales". There will also be bad debts. Dont lose focus with collecting debts, focus on the business and if your a one man band set aside one day every two weeks to ring customers, record calls, follow up.

Good Luck.
 
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