Small Claims

Hi All,

I'm currently considering going to small claims for payment from a client and wondered if anyone could advise as to how to go about this, what it costs and how long it takes?

Cheers,
Tyler

[TheJoshM]

Have you tried everything else first?

http://www.payontime.co.uk/collect/collect_main.html

After you've done that you may find it cheaper to get a debt collection agency to contact them rather than taking them to court.

Josh,

Hi Josh,

Haven't yet tried anything else other than the initial invoice, a reminder after due date and suspending the hosting account. Small claims seemed the best way to go?

Cheers,
Tyler

[TheJoshM]

How much do they owe?

Is it really worth it?

http://www.debtclaim.co.uk/howitworks.php

This debt recovery company charges a minimum of £50... what are the fees for going to the Small Claims Court?

More advice is available here:
http://www.businesslink.gov.uk/bdotg...cId=1074453392
and here:
http://www.insolvency.gov.uk/guidanc...upacompany.htm

Hope that helps!

Josh

Thanks Josh will take a look at those. I think small claims charge £40 which I could also claim for client as costs. It's for £550 so worth it really yeah

[TheJoshM]

£550 worth of hosting? How long haven't they been paying for?

On an unrelated note would you mind if I email you? I've got a couple of things I think you may be interested in.

Cheers,
Josh

It's not for hosting its for a website design lol. I host the site also but they didnt pay for the design and hosting so suspended it.

Feel free to drop me an email to tyler @ webtotal.co.uk (remove spaces) or add me on msn at same address

Cheers,
Tyler

[TheJoshM]

It's not for hosting its for a website design lol. I host the site also but they didnt pay for the design and hosting so suspended it.

...ahh makes more sense

[MailOrderCo]

have you got paperwork between you and the client ? a debt collection agency will take a cut, probably really annoy your client and probably end up being paid over many months.

IF the client has a genuine cash flow problem at the minute you do not want to upset them from ever doing business with you again.

Have you tried talking with the client ? try and see if they have difficulties and if you can arrange a monthly payment plan direct with them ? then your not giving a % to a collection company for an easy task.

A webdesigner i once new never got paid for a job, he tried everything to get it back, turned out the client had died in a car crash and thats why there had been no contact.

I've known the client a few years. They've always been unreliable for payment. I used to work for them too lol. They take forever to do anything and in all honesty I'm not sure I want any more custom from them.

[James Smith]

If they are a known poor payer they I dont think they are likely to pay just on a single reminder!

You should be chasing them on the phone, 4 or 5 times over 2-3 weeks and then do a solicitors "letter before action". They may well pay on that.

Then go for the small claims court so long as you have your contract etc all watertight etc. It REALLY helps however to document at least one written promise to pay (email etc) becuase then you bascially can lose at the small claims court. If they have never promised to pay they may be able to claim you havent delivered the service etc.......

[nicolaca]

Tyler

You can do it online

http://www.hmcourts-service.gov.uk/o...mcol/index.htm

I've done it once and it took about 6 weeks from me doing the paperwork online to receiving the money from the client.

[lukehome]

remember to send any letters recorded post so they have to be signed for.
then you have evidence a letter was sent and recieved, from recovering debts from my dads business ive found a recorded letter seems to hit home when several reminders by normal 1st class fell on deaf ears.
to be honest for a debt the size of yours i wouldnt use debt collectors but i would use the small claims court.
at the end of the day the debt collector cant do anything different than you can if they do get the monies owed to you then you'll have to pay them a fee which would be at least 10% of the balance.
but a small claims court form landing on the doorstep normally results in full payment quickly as they dont want a black mark against there name.
in the past ive used both methods and if needed again i'd use the small claims as its a) cheaper b) quicker and c) more effective.