Rising Sun Member Forums  

Go Back   Rising Sun Member Forums > Toyota 4x4 > General Chit Chat

Reply
 
Thread Tools
  #1  
Old 07-06-2012, 10:48 AM
Corbet's Avatar
Corbet Corbet is offline
Hard Core 4+
 
Join Date: Oct 2006
Location: Durango, Colorado
Posts: 3,879
Default small claims court or collection agency?

Unfortunately I am faced with an account that is over 90 days past due for the first time as a business owner. Anyone have any experience trying to collect accounts that are past the point of "may I please have my money?"

I'm considering a small claims court or local collection agency.
__________________
Speski OffRoad LTD, Cargo Solutions for Toyota 4x4's http://www.SpeskiOffRoad.com
"80 series, with a fridge"
1976 FJ40, Project with little progress.
2004 Starcraft 10RT

Reply With Quote
  #2  
Old 07-06-2012, 11:46 AM
Woodsman's Avatar
Woodsman Woodsman is offline
Trail Ready
 
Join Date: Oct 2010
Location: Batesville, Indiana
Posts: 300
Default

I would start with a certified letter requesting payment of the past due account (along with pertinent facts/dates etc) within a specific time frame/number of days.

If they don't pay up, when you take them to small claims court this provides written evidence that you made efforts to get paid beyond just phone calls.

Other avenues: I sold a used wide belt sander to a friend (don't say it) for $2500. He paid $1,000 down and was to pay $375 per month to pay it off. I went a year and was tired of waiting for my money so I started calling and leaving messages but was not getting any return calls. Finally, I started being more firm and "unpleasantly serious" and simply said "If I don't receive the $1500 balance within a week I will be setting in front of your place with a trailer waiting to load up the machine." He finally called back all apologetic and stuff and paid me within a few days.

In another case, I paid a used machinery salesman $3000 for the sliding table for a SCMI sliding table saw. He told me where to have it picked up in Atlanta but I called and there was no such saw there. He kept telling me there was a misunderstanding and he was "working on it". Later phone calls were not returned. A few months later I was in Pataskala, OH and looked him up thinking I would "take care of the situation". I found an empty house with overgrown lawn. Stopped at the neighbors house and found out he moved to Florida where I tried to track him but there are way too many with the same name down there. I stopped and left a report with the local police. I still continue to look him up because I figure there's a good chance he'll resurface in the woodworking industry. Found out from a machinery dealer in Nebraska that he took a guy for $25K. If he owed me that much I would've sent Guido to bust his knee caps.

Edit: just found him and I was correct. He started another used machinery website...http://cornerstoneremarketing.com/Contact-Us.html Now to figure out how the scare the bejesus out of him. Thanks for making me think about this !
__________________
- - - - - - - - -
08 FJ Cruiser with a few mods
TLCA#19287 -Since 12/08

Last edited by Woodsman; 07-06-2012 at 04:53 PM.
Reply With Quote
  #3  
Old 07-06-2012, 02:46 PM
AxleIke's Avatar
AxleIke AxleIke is offline
Rising Sun Member
 
Join Date: Apr 2006
Location: Arvada, CO
Posts: 3,309
Default

Check into the costs associated with it as well. I know collection agencies usually buy the debt from you at a discount (so you would only get some fraction of what you are owed, not the whole amount). Not sure how much you are owed, but when I looked into doing this a while back, it was going to cost me more to go after the guy than it would to just let it slide. Still burns me knowing that he got away with ripping me off though.
__________________
Isaac

Baby Beast 2- 1999 4Runner SR5

Baby Beast -1987 4Runner SR5-Gone, but not forgotten

Generation Dead
Reply With Quote
  #4  
Old 07-06-2012, 03:16 PM
nakman's Avatar
nakman nakman is offline
Rising Sun Commander
 
Join Date: Aug 2005
Location: north side
Posts: 9,878
Default

Holy cow, James, what a turn of events here.. can't wait to see how this turns out!

My only experience is at a more corporate level, but yeah like Isaac said you only get a fraction of what's owed, they get the rest.
__________________
99 uzj100, 05 525EXC

www.gamiviti.com

Reply With Quote
  #5  
Old 07-06-2012, 04:59 PM
brentbba's Avatar
brentbba brentbba is offline
Wincher
 
Join Date: Apr 2011
Location: OC, CA
Posts: 48
Default

Similar to Tim - all at corporate, but a collection agency fee will usually run you at least 30% or more and with only one account, depending on the amount due, you may have trouble even finding an agency to take the claim. I agree with the comments about the letters. Send it certified, return receipt required and keep that proof. If the deadbeat is not in CO, you may get a judgement in a CO small claims court, but you still might have trouble collecting.

Do you have any lawyer friends willing to write you a letter on their letterhead to scare the debtor even more? Any club members perhaps willing to do some pro bono work? Good luck!
__________________
Brent
'94 White LC; Kaymar Rear Bumper w/tire carrier; Hanna Sliders; ARB winch ready Front Bumper; Slee Transfer Case Skid Plate; BFG MT KM2 285's, OME 850/863 Heavy 2" lift, INTI Rack; Warn M12000 Winch, Snorkel; Sputnik!, M101CDN
TLCA Member #13420; KI6SGO
Reply With Quote
  #6  
Old 07-06-2012, 05:22 PM
DaveInDenver's Avatar
DaveInDenver DaveInDenver is offline
Hard Core 4+
 
Join Date: Jun 2006
Location: Larimer County
Posts: 6,475
Default

__________________
'91 Toyota Pickup
'09 Kawasaki KLR650
'12 Gunnar Rockhound 29

"They say the test of literary power is whether a man can write an inscription. I say, 'Can he name a kitten?'" -- Samuel Butler
Reply With Quote
  #7  
Old 07-06-2012, 06:29 PM
Corbet's Avatar
Corbet Corbet is offline
Hard Core 4+
 
Join Date: Oct 2006
Location: Durango, Colorado
Posts: 3,879
Default

My local collection agency will take the single account at 33%. Pretty much what I expected there.
__________________
Speski OffRoad LTD, Cargo Solutions for Toyota 4x4's http://www.SpeskiOffRoad.com
"80 series, with a fridge"
1976 FJ40, Project with little progress.
2004 Starcraft 10RT

Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -6. The time now is 03:29 AM.


Powered by vBulletin® Version 3.7.1
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.