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Business Debt/no contract debt collection

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Expert: - 1/8/2009


Question
QUESTION: I did some remodeling work for a residential home owner in Utah and I gave the customer a bill but didn't get any signature from the customer. I received half the bill and haven't been able to collect anything since. They are saying I did a crumby job and charged too much and won't pay the rest which is about 450 bucks. Is there anything I can do to get the rest of the payment? Can I send them to a collection agency without a signed document? What are my options? Thanks for any help.

ANSWER: James,
Did you have any written agreement BEFORE any work was done? If so, you can use that as well as the bill for documentation. I would go ahead and either file with small claims court or place the debt with an agency. If you choose to place the account with an agency, let them know the person is disputing the debt claiming poor work, that will help them when they are trying to collect.
Sincerely,
Michelle Dunn

---------- FOLLOW-UP ----------

QUESTION: I wrote on a piece of paper what I was going to do for them with our address and the cost of the work and handed it to them before any work was done but they didn't sign anything and give it back or anything like that. Don't I need more proof of debt before a collection agency can get involved?

Answer
Your first step might be to try to work with the customer to find out if there is
anything you can do to correct what they perceive as a wrong with the work, but if that
is not an option and you feel you did a quality job and kept your end of the bargain, you
might want to consider small claims court or you could use a collection agency.
Based on the amount due, you can file a claim with your local court house in small claims
court, and the bill and check for half of the bill as well as any receipts and notes you
have about any conversations you had with the customer would be the documentation you
would want to bring with you to court.  Also, the judge will ask you if you tried to work
with the customer to resolve the balance due before filing with the court.
If you decide to place the account with a collection agency, you would want to provide
them with the same documentation, even though there is not signature.  The debt has been
acknowledged since the customer paid half of the bill.  It sounds as though they are
disputing the other half but they will have to prove their case in order to avoid paying
that.  Make sure you let the collection agency know the circumstances and that half of
the bill was paid and that they are claiming it is now an overpriced job and that they
are not happy with the work. This will help the agency in their efforts when they are
trying to collect for you.
Good luck!

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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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