Expert: Christine Janklow - 11/20/2009

Question
QUESTION: We are collecting on small amount - $480.00 in California on goods that were invoiced late, but shipped in Feb 2007. We are distributors where parts are drop-shipped from the east coast to southern California with UPS. We have supplied packing slips for the goods from the vendor showing us as the bill to, and the customer in question as the ship to. At this time, tracking with name and signature is unavailable. They are unable to verify their purchase orders, and this order was verbal by their supervisor, and so named on the packing slips and invoice. Customer says they refuse to pay without a signature. What rights do we still have? Thank you, John-Paul

ANSWER: John-Paul:
Thank you for your question. This is a billing issue, and depending upon how recently this happened you should be sure to exhaust all efforts to invoice and follow through on collecting in a reasonable manner. You have proof of sale and delivery so utilize this in your efforts. Also, you may wish to discontinue sales to this client until the debt is paid. If the client disputes the invoices your firm must enforce its efforts according to the policies of your company. There are also timeframes to collect upon both verbal and written contracts that differ from state to state. See http://www.fair-debt-collection.com/statue-limitations.html
If you are unsuccessful in collecting, you may also turn the debt over to a professional debt collection agency or attorney for further action.

Respectfully,

Christine Janklow

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

QUESTION: Thank you for your prompt reply, Christine. So I fully understand - in your thinking - and I understand I would need firm advice from a California lawyer - is the client's refusal to pay without merit given the paper work I have submitted to them so far?

Regards, John-Paul

Answer
John-Paul:
In response to your follow up, it is difficult for me to assess the merit of your claim or the position of your client. However, if you have spent significant time (more than 6 months) pursuing payment on a relatively small claim for money, your firm surely needs to evaluate the most cost effective way to obtain payment or let it go. To get a money judgment would be something you would need to seek counsel on as it would likely need to be done in small claims court. Some suggestions would be to review your company policy on sales invoices and how you disclose possible collections efforts to clients, so you don't encounter this issue in the future particularly on a larger matter. Good luck, and if these answers have been helpful please take a moment to provide a positive rating so others may benefit as well.

Respectfully,

Christine Janklow