One of our clients owed over £3000 and stopped paying. The matter went to court and some of the debts were written off but it was agreed that he was to pay just over £2000 by monthly installments.
Some of his payments were hit and miss with a few bounced cheques but over the course of two years his balance has come down to £500. He stopped sending cheques a few months ago and when trying to contact him his number no longer existed.
We then started to receive letters back that he is no longer at the same address.
Last week, out of the blue, he came in saying that he had paid more than he should have and that we owe him money. We looked into this but he hadn't taken into account the bounced cheques. We asked him for a telephone number which he refused to give. We asked him for his new address and he said he had no fixed address. He said everything had been cut off, mobile phone etc then walked out and drove off in a brand new car
We use a debt collection agency but their letters are coming back too.
Is there anything we can do about this outstanding amount? How would you tackle this situation? Its not something we would like to let go because unfortunately quite a few of our clients are reluctant to pay and this is mounting up
Hi - sorry to hear about your situation A little concerning you have a few outstanding amounts, its really important that this is dealt with at an early stage. Are you sending out credit facility letters to all your clients letting them know the credit you have agreed ? This should really be followed and kept to - its a little like children if the boundaries arent kept to they step outside and see if they get away with it.
Have you tried a trace on them ? Direct Route do a trace service?
let me know if I can help at all - please feel free to send over an email
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Donna Curling - Complete Book-Keeping Ltd (CBKLtd) - 07939 101900
We have a process with each client whereby we'll send out an up to date statement with a polite note on it that we would appreciate immediate remittance or the chance to contact us to arrange installments by standing order.
If this is ignored, our director sends out letters saying that if we don't receive payment it will be passed to a debt collection agency and that it could be difficult to obtain further credit etc.
If this is ignored we outsource the debt after a little time has passed to give them a chance to pay.
However with this particular one, its gone through the debt collection agency and court and he is still reluctant to pay.
Did you get the license plate from the brand new car?
If the police need to become involved then that could be used to track them down.
Not sure if debt collection agencies have access to that information.
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
