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Business Debt/Used car dealership owes my business for services.

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Expert: - 10/16/2008


Question
I run a mobil locksmith business from my home in Colorado. A local used car dealership requested my services to make new keys for 6 of their repossessed vehicles.
I told them, in writing, what the cost of the services would be and had them initial the receipt before I got started. Once the job was completed I had them sign the receipt and asked what form of payment they would be using.
I was told that they cut the checks on Fridays and would drop the check in the mail. This was several weeks ago and I have not received payment.

When I initially contacted general manager about the late payment he complained about the charges on the bill and was not going to send the payment until we renegotiated the price of my services. I told him that he had agreed to the price beforehand, initialed the Bid/estimate and then signed the receipt, promising payment, when the work was completed.

I have worked for other locksmith companies that would file a "Theft of service" report with the county Sherrif or put leins on the persons vehicle. I did not get any info on the vehicles, so I know that this is not one of my options.

What can I legally do to expedite payment from this company?  Can I file a police report for theft of service?
If I hire a collections attorney, can I add the attorney fees to the current unpaid balance?
Any advice that you can offer would be awesome.

Thank you in advance,
Sean

Answer
If you hire a collections attorney or a collection agency, the only way you can add the fees to the unpaid balance is if you provided for that on the paperwork signed by the debtor and if your state law allows it.

You can file with small claims court and they will add interest and any fees, but that does take some time to obtain a judgment and then you have to collect on the judgment, but with a judgment you can attach any assets.

I would suggest you send a final demand letter and send it in a flat rate priority mail envelope with delivery confirmation. Once you have that letter sent and they do not pay by the date you specify in your demand letter, i would pursue legal action either by using small claims court or a collection agency or attorney.

Good luck!
Michelle Dunn

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Michelle Dunn

Expertise

As one of the Top 5 Women in Collections, one of the Top 50 Collection Professionals, and winner of the Business Excellence award, I can answer any questions about debt, debt collection, improving business credit, creating a credit policy, enforcing a credit policy and collecting on past due accounts. I can also answer questions in regards to starting a debt collection agency since I have been a bill collector for over 24 years, started and ran my own collection agency for 8 years, and maintain my 12 year old Credit & Collections Association for members of the credit & debt collection industry. I am also the author of the popular and award winning book "Starting a Collection Agency, how to make money collecting money" now on it's 3rd edition. This book has won a the Writers Digest self published award as well as the New York Book Festival Award. I am a repeat contributor to the Wall Street Journal, and have been featured on NPR, CNN, as well as many other national radio and television programs. I have also been featured in national publications such as the Wall Street Journal, Forbes, Smart Money, MSNBC and much more. I have 17 published books to my name and am an accomplished speaker and consultant. I currently write 9 columns for newspapers, magazines and online portals worldwide.

Experience

I have over 24 years experience in debt collection, I started and ran my own collection agency for 8 years and I am the founder & owner of my Credit & Collections Association that I founded in 1998. www.credit-and-collections.com

Organizations
My Credit & Collections Association, I was also a member of the American Collectors Association and Plymouth Chamber of Commerce for 11 years. I am a member of many writing groups as well as my local Women Inspiring Women chapter. I am a member of Know More Media as an expert for their blog on business credit.

Publications
Business NH Magazine, Smart Money Magazine, MSNBC, CNN, Forbes.com, The Wall Street Journal, Home Business Magazine, Entrepreneur Magazine and website, many books, newspapers and television programs as well.

Education/Credentials
I have written 17 books in my collecting money series and one for Entrepreneur Press called the Ultimate Credit and Collections Handbook. My newest book is being published by John Wiley & Sons in May titled, The Guide to Getting Paid, how to weed out bad paying customers, collect on past due balances and avoid bad debt. This book is also being sold to many colleges as a text book.

Awards and Honors
My book Starting a Collection Agency, how to make money collecting money won an award from Writers Digest and the 2007 New York Book Festival in the "How to" category. I have won 2 awards from Dun & Bradstreet and Governor Jean Shaheen. I was nominated as one of the Top 5 Women in Collections twice as well as having been selected as one of Collection Advisor's Top 50 Collection Professionals by my peers.

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