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Mike Burd

Debt recovery
« on: January 14, 2021, 10:22:55 am »
Does anyone take people to court?

We used to write with a 14 day pay up or see you in court letter but never took them to court. Most paid with that. But since December I've adopted a compliant template from FSB that offers arbitration first and gives 30 days. Any that don't pay will be filed via MCOL.

Just wondered what people's experience. FYI, these may be for as little as £40 or so.

Stoots

  • Posts: 5986
Re: Debt recovery
« Reply #1 on: January 14, 2021, 10:43:03 am »
Took 3


Well, i say took i didnt get to court but i filed the small claim.

Can you give me more info where i can find the compliant template?

As mine are just letters probhably dont hold any legal weight.


I sent out my debt letters before christmas out of £412 outstanding ive recovered ££164.

The 14 days is now up. I cant be bothered taking the others to court though. My amounts are all £10 to £15.

I had a few tips over Christmas so when you add it all up im  less than a days work out of pocket, its not worth it write it off as a business expense.

I will just move them to the revenge list.   :-X



CleanClear

  • Posts: 14210
Re: Debt recovery
« Reply #2 on: January 14, 2021, 11:29:54 am »
Does anyone take people to court?

We used to write with a 14 day pay up or see you in court letter but never took them to court. Most paid with that. But since December I've adopted a compliant template from FSB that offers arbitration first and gives 30 days. Any that don't pay will be filed via MCOL.

Just wondered what people's experience. FYI, these may be for as little as £40 or so.

Just be aware that if you get them to Court and they get awarded a CCJ against them, that still does not get you your money. You'll need to pay again to enforce the debt.
*Status*--------Currently Online---------

dd

  • Posts: 2510
Re: Debt recovery
« Reply #3 on: January 14, 2021, 12:24:29 pm »
Took 3


Well, i say took i didnt get to court but i filed the small claim.

Can you give me more info where i can find the compliant template?

As mine are just letters probhably dont hold any legal weight.


I sent out my debt letters before christmas out of £412 outstanding ive recovered ££164.

The 14 days is now up. I cant be bothered taking the others to court though. My amounts are all £10 to £15.

I had a few tips over Christmas so when you add it all up im  less than a days work out of pocket, its not worth it write it off as a business expense.

I will just move them to the revenge list.   :-X
Revenge list - does that mean you poo in their garden?

Mike Burd

Re: Debt recovery
« Reply #4 on: January 14, 2021, 01:07:03 pm »
Took 3


Well, i say took i didnt get to court but i filed the small claim.

Can you give me more info where i can find the compliant template?

As mine are just letters probhably dont hold any legal weight.


I sent out my debt letters before christmas out of £412 outstanding ive recovered ££164.

The 14 days is now up. I cant be bothered taking the others to court though. My amounts are all £10 to £15.

I had a few tips over Christmas so when you add it all up im  less than a days work out of pocket, its not worth it write it off as a business expense.

I will just move them to the revenge list.   :-X


PRE-ACTION PROTOCOL LETTER BEFORE CLAIM

Dear Mrs MacCarthey

Our Claim: Breach of contract for failure to pay our invoices in the sum of £ 38.00


1.   Within this letter it is our intention to set out the scope and nature of our claim against you and so you should regard this letter as being the Claimant’s Letter before Claim as required by the Pre-Action Protocol for Debt Claims (the Protocol). In particular, we refer you to paragraph 7 of the Protocol and paragraphs 13 to 16 of the Practice Direction – Pre-Action Conduct and Protocols concerning the Court’s powers to impose sanctions for failing to comply with its provisions. 

2.   In the circumstances we request that you acknowledge receipt of this letter within 7 days of receiving it and that you provide us with a substantive response (i.e. your Letter of Response) within 30 days of the date of this letter.

3.   If you believe you will not be able to provide a substantive letter by then, please inform us of this when you acknowledge receipt of this letter and, at the same time, please inform us of the reason why you require more time and stipulate the date by which you will provide a Letter of Response.










Background


1.   We cleaned your windows or provided services on the dates in your enclosed statement or invoices.

Breach of Contract

2.   At the time of writing you have failed to pay the sum of £30.00  inclusive of VAT, which was due for payment by within 7 days as per our standard terms

Relevant Documents

3.   We enclose a copy of the following documents that are relevant to this matter:

a.   Our Terms and Conditions of Business;
b.   A statement of account.


Payment of the Debt

4.   The sum outstanding can be paid to the following bank account details:

Account Name:    Agleam Windows Ltd         
Bank:                  Santander           
Sort Code:       x           
Account Number:   x       

5.   You may contact us on the details at the top of this letter to discuss payment. You should note that free independent legal advice and assistance is available from the Citizens Advice Bureau.





Alternative Dispute Resolution

1.   Pursuant to the Civil Procedure Rules we are open to considering forms of Alternative Dispute Resolution with you. You are invited to consider the same and put forward your proposals to settle this dispute within the above stipulated period. However, we are confident in our claim against you and we are prepared to progress the matter to conclusion if required.

Summary and Next Steps

6.   We have a claim against you in the sum of £x. Should proceedings be issued, we will also seek interest on the outstanding sum, the Court issue fee and our costs as the Court may allow.

7.   We require payment of £x by no later than 30 days from date of letter.

8.   Ignoring this letter may result in the issue of legal proceedings against you without further notice and may increase your liability for costs.

9.   If you are unsure as to your position we suggest you seek independent legal advice.


Yours faithfully



Agleam Windows Ltd

Smudger

  • Posts: 13165
Re: Debt recovery
« Reply #5 on: January 14, 2021, 06:37:45 pm »
Are you doing this in the hope you don't need to do small claims or as a evidence that you entered a form of arbitration before finally taking court action

Darran
A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.

www.oddbodscleaning.co.uk

Mike Burd

Re: Debt recovery
« Reply #6 on: January 14, 2021, 06:51:36 pm »
Are you doing this in the hope you don't need to do small claims or as a evidence that you entered a form of arbitration before finally taking court action

Darran
The latter. It’s from the FSB template.

Smudger

  • Posts: 13165
Re: Debt recovery
« Reply #7 on: January 14, 2021, 07:03:30 pm »
I wouldn't waste your time - even with more substantial debts of £200 plus the time and money ( mostly time ) is just no worth it - small claims now is complex (to what is was) you can jump through all the hoops and when finally you get a date you will b asked to arbitrate with a court official before going into court - and the advice given is this " the judge may not look kindly on your case if you refuse to arbitrate "

Go through all that - and even win - your still unlikely to get the money, well maybe £3 a month

The courts with COVID are really behind as well

Darran
A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.

www.oddbodscleaning.co.uk

deeege

  • Posts: 4947
Re: Debt recovery
« Reply #8 on: January 14, 2021, 07:09:49 pm »
I’d have thought your time is better spent on other things rather than chasing debts of £50 or less.

Other than firing off a few initial threatening letters I’d just chalk it up as a cost of doing business and move on.
"....and it's lend me ten pounds, I'll buy you a drink, and mother wake me early in the morning."

Mike Burd

Re: Debt recovery
« Reply #9 on: January 14, 2021, 07:13:04 pm »
I wouldn't waste your time - even with more substantial debts of £200 plus the time and money ( mostly time ) is just no worth it - small claims now is complex (to what is was) you can jump through all the hoops and when finally you get a date you will b asked to arbitrate with a court official before going into court - and the advice given is this " the judge may not look kindly on your case if you refuse to arbitrate "

Go through all that - and even win - your still unlikely to get the money, well maybe £3 a month

The courts with COVID are really behind as well

Darran
The main reason for using the new template is because it is compliant with the new court process and includes an offer of arbitration.

When you’re picking up large numbers without the time to sniff out problem customers  you (or at least I) pick up a larger proportion of non payers. Possibly 30-40 out of around 900 new ones. it’s probably about £1,500. About 60% pay with the letter and the new template offers me the ability to selectively issue an MCOL. So either for larger sums or if they’ve really annoyed me.  ;D

robbo333

  • Posts: 2399
Re: Debt recovery
« Reply #10 on: January 14, 2021, 07:15:35 pm »
Get a Sum Up card reader and go knock on their door on a Sunday morning around 10am.

PS. Park your van like a w@nker and wear a high vis jacket so everyone can see.
"Thank you for calling: if you have a 1st floor flat, mid terraced house, lots of dogs, no parking, no side access, or no sense of humour, please press hold!
For all other enquiries, please press1"

Smudger

  • Posts: 13165
Re: Debt recovery
« Reply #11 on: January 14, 2021, 07:21:35 pm »
Well good luck to you, its really is not worth the effort - if it's 35 customers out of 900 why worry about it your spending hour plus more money for 1,500  when your getting in 60k plus

Your time is better spent looking after the paying customers  - don't loose sight of the bigger picture

Darran

A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.

www.oddbodscleaning.co.uk

simon w

  • Posts: 1563
Re: Debt recovery
« Reply #12 on: January 14, 2021, 07:39:23 pm »
Go around on an evening and expect to walk away with all the money owed to you, you need to make them understand their only option is to get you paid. I've used Thomas higgings for commercial work successfully twice but they'll tell you it's not worth it for such a small sum of money.

P @ F

  • Posts: 6312
Re: Debt recovery
« Reply #13 on: January 14, 2021, 08:41:56 pm »
And I bet they are all Facebook custies  ;D ;D ;D
I'm so lazy I'm getting tired of it !

Mike Burd

Re: Debt recovery
« Reply #14 on: January 14, 2021, 09:22:49 pm »
Well good luck to you, its really is not worth the effort - if it's 35 customers out of 900 why worry about it your spending hour plus more money for 1,500  when your getting in 60k plus

Your time is better spent looking after the paying customers  - don't loose sight of the bigger picture

Darran
It annoys me if I’m honest. About the only thing I do now is the bank reconciliation and every time I see the debt list it pees me off. The letters do bring a good chunk in and filling in a few MCOL claims is as much fun as winding Tosh up.  ;D

Mike Burd

Re: Debt recovery
« Reply #15 on: January 14, 2021, 09:24:00 pm »
And I bet they are all Facebook custies  ;D ;D ;D
I really ought to track this. I’m certain there’s a higher percentage of messers from Facebook.

Smudger

  • Posts: 13165
Re: Debt recovery
« Reply #16 on: January 14, 2021, 09:28:15 pm »
you have to look at the percentages....

back in the early days I would have £200 outstanding and the odd 30 quid bad debt...

now its more like £7k outstanding and somewhere land a couple of hundred in bad debts.... 

at around £40 average its not worth my precious time to follow them more than a phone call and possibly a letter, don't get me wrong if its in the hundreds I'd do more but still not do court - id rather spend time quoting and getting new work..

Darran
A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.

www.oddbodscleaning.co.uk

Soupy

  • Posts: 19326
Re: Debt recovery
« Reply #17 on: January 15, 2021, 06:39:33 am »
And I bet they are all Facebook custies  ;D ;D ;D
I really ought to track this. I’m certain there’s a higher percentage of messers from Facebook.

I do track it, it's over 80% for me.
Every line of serious work that I have written since 1936 has been written, directly or indirectly, against totalitarianism and for democratic socialism, as I understand it - George Orwell

Mike Burd

Re: Debt recovery
« Reply #18 on: January 15, 2021, 07:45:32 am »
And I bet they are all Facebook custies  ;D ;D ;D
I really ought to track this. I’m certain there’s a higher percentage of messers from Facebook.

I do track it, it's over 80% for me.
80% of Facebook customers are messers or 80% of your messers are Facebook customers?

I don’t have many from there. I had a guy bring in a fair few last year but still only about 10% of all the new ones.

Do you put in a claim to MCOL for any of your non payers?

james peters

  • Posts: 931
Re: Debt recovery
« Reply #19 on: January 15, 2021, 08:19:38 am »
i used face book for a while last year.
I picked up a few good customers , but  most of them them turned out a waste of time.
wont be using fb again.
Its ok for one off add ons , but a nightmare for regular good paying customers.

dazmond

  • Posts: 23504
Re: Debt recovery
« Reply #20 on: January 15, 2021, 08:39:08 am »
The only debt I have to write off is customers who die or move.I cant remember the last time anyone blatantly didnt pay.it was many years ago now.

I think I had to write off £55 last year.

price higher/work harder!

Soupy

  • Posts: 19326
Re: Debt recovery
« Reply #21 on: January 15, 2021, 08:46:14 am »
And I bet they are all Facebook custies  ;D ;D ;D
I really ought to track this. I’m certain there’s a higher percentage of messers from Facebook.

I do track it, it's over 80% for me.
80% of Facebook customers are messers or 80% of your messers are Facebook customers?

I don’t have many from there. I had a guy bring in a fair few last year but still only about 10% of all the new ones.

Do you put in a claim to MCOL for any of your non payers?

80% of my most recent (2019 - 2020) bad debt write offs first contacted me directly through Facebook.

I've only been prepared to go to court once for £700. I've threatened it many times though.
Every line of serious work that I have written since 1936 has been written, directly or indirectly, against totalitarianism and for democratic socialism, as I understand it - George Orwell

P @ F

  • Posts: 6312
Re: Debt recovery
« Reply #22 on: January 15, 2021, 09:41:23 am »
I am on Facebook but in no way use it for work , it’s purely there as a point of contact for existing custies  .

I very rarely get enquiries for quotes and when I do it’s normally friends of my custies , them I do look at as I see them as low risk .

I used to push it but soon realised it was mainly people who didn’t have a cleaner for the exact reason for this thread , or of course they were complete idiots  ;D
I'm so lazy I'm getting tired of it !