If a client you place on a 'Black List' found out about it, yes they could certainly sue you for libel, claiming that your list portrayed them in a negative light and believe it or not, they would have a valid claim in a court of law.
It's much better to pursue your unpaid invoices without publicly revealing your deadbeat clients names. That's not to say you aren't free to privately pass that information along to another virtual assistant, but to actually create a list and distribute it would leave you and your business at risk legally.

While a signed contract is vital, it doesn't provide you with protection for every possible legal technicality out there. Unless you've written in a clause that specifically states that clients who fail to pay invoices within a certain period of time will be added to this distributed list, your contract would be no help should you be sued for libel. And even then, it wouldn't be a guarantee it would protect you.

And when I mentioned changing your pricing structure, I believe that it's actually more professional to ask for a deposit up front. I believe that it makes it clear that I am a business woman who understands just what my services are worth. I don't see where changing your pricing structure to ask for at least a part of your payment up front would make ones business look like a hobby at all.

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~Tina Marie Hilton of Clerical Advantage
& founder of VA Survival School

This is a summary of how the Supreme Court defines Defamation, Libel and Slander.


The tort of defamation began in American common law as an action completely defined by state law. When a state determined a statement to be libelous, that statement was not entitled to First Amendment protection.

In 1964, the Supreme Court's ruling in New York Times v. Sullivan dramatically changed the face of defamation in the United States. Sullivan, the plaintiff, was an Alabama public official whose public duties included supervising the Montgomery Police Department. During his time in office, the New York Times printed an advertisement that criticized the police department for what the advertisers considered harassment of the African Americans in the South and an attempt to terrorize Martin Luther King, Jr. The advertisement contained several inaccuracies, but did not identify Sullivan or his office. Sullivan sued the Times, claiming that he had been defamed. The courts in Alabama all held for Sullivan, but the United States Supreme Court reversed the decision. In doing so, the Court established that state defamation rules are limited by First Amendment principles. Furthermore, the Court held that when public officials sue for defamation, they must prove a higher standard of fault than private individuals. They must prove the defendant publisher acted with actual malice, which it defined as knowledge of falsity or reckless disregard of the truth.

In subsequent cases, the Supreme Court extended the actual malice standard to public figures, and held that private individuals must prove actual malice only when trying to obtain punitive damages in a case dealing with a matter of public concern. When a private individual sues for defamation regarding a matter of private concern, no actual malice must be proven, even for punitive damages.

Although defamation in the United States has changed substantially over the years, it is now fairly well-established. For today's plaintiff to prevail in a defamation action, he must prove publication of the defamatory statement, identification of the plaintiff, falsity, defamatory content, injury and fault. If the plaintiff is a public official or public figure and the subject matter is a matter of public concern, or if the plaintiff is a private individual seeking punitive damages for a statement involving a matter of public concern, he must prove actual malice to establish the fault element.Otherwise, states are free to establish their own fault standards for recovery.

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Phyllis L
UNIQUELY40, LLC
http://www.uniquely40.com

To the original poster of the thread - Lynne, my apologies, I didn't realize you'd directed a question at me here I wanted to pop in and give a quick answer but got caught up in reading everyone's replies. The short answer is 'No', but let me explain a bit.

Tina is absolutely correct about the issue of libel ]re: a blacklist] and Phyllis, if you carefully read the info you've supplied you'll find that it contains the exact reason why she's correct, and why we would not implement a blacklist here at VAF: When a private individual sues for defamation regarding a matter of private concern, no actual malice must be proven, even for punitive damages. Now we can argue the semantics of what is private and what is public - but I'm just going to say that VAF at least, is not willing to take any chances.

I couldn't agree with you more Tina - it is our responsibility as business owners to put policies and procedures in place that protect us. I learned the hard way the first time I experienced a non-pay issue, and made changes to my own business immediately. I don't have issues with payment anymore. End of story. I took proactive measures to curb the issue.

I'd suggest that instead of looking for ways to 'call out' bad clients, look for ways to fortify your business so you don't get stung; create intake procedures that help you weed out the bad clients from the start so you never have to go down that road.

It's a way to put your energy in a positive direction, rather than a negative one and will ultimately make you a stronger business owner, rather than a bitter one.

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Originally Posted by Tess

I'd suggest that instead of looking for ways to 'call out' bad clients, look for ways to fortify your business so you don't get stung; create intake procedures that help you weed out the bad clients from the start so you never have to go down that road. It's a way to put your energy in a positive direction, rather than a negative one and will ultimately make you a stronger business owner, rather than a bitter one.

Tess and others, this is a bit off-topic, but would you suggest one of the 'intake measures' be that besides getting all pertinent business information (name, address, phone(s), business bank name, address, phone, etc.) that a PC also supplies credit references to us? I've thought about adding that to my new client form - and make sure to check the credit references they give. I always did this in my former j-o-b for clients/customers/other businesses and it saved a lot of headaches down the road. If a PC wouldn't supply this information, then (JMO) one should be very hesitant to take them on as a client and should discuss this missing information when the form is returned.

To me, since we are businesses, this would just make good business sense.

Thoughts?

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Jules, SunRise Virtual Solutions - WordPress Customization & XHTML/CSS Web Sites

Good question... It's not something I've ever done and can't see myself doing it - although I never say 'never'

I always take a deposit from new clients and hold the funds for six months of regularly paid invoices, for ongoing work. For single projects I take 50% min up front and the rest of the payments are worked out in the proposal at various stages of completion. I also do have late payment penalties written into all of my proposals, contracts, and invoices - and I implement them when need be, no matter who the client is. That's been enough for me so far.

I'm curious to know if anyone else has ever taken credit info from a PC - and Jules, if this is something you'll be adding to your practice after all?

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The way I handled my non-paying client after multiple phone calls was to send a series of 3 collection letters. The last one said you have 10 days to pay or you would be reported to Dun & Bradstreet and forwarded on to a collection agency. Fortunately this was enough to get them to pay.

Cindy
Bright Bookkeeping LLC
http://www.Bright-Bookkeeping.com

Originally Posted by Tess

To the original poster of the thread - Lynne, my apologies, I didn't realize you'd directed a question at me here I wanted to pop in and give a quick answer but got caught up in reading everyone's replies. The short answer is 'No', but let me explain a bit. Tina is absolutely correct about the issue of libel ]re: a blacklist] and Phyllis, if you carefully read the info you've supplied you'll find that it contains the exact reason why she's correct, and why we would not implement a blacklist here at VAF: When a private individual sues for defamation regarding a matter of private concern, no actual malice must be proven, even for punitive damages. Now we can argue the semantics of what is private and what is public - but I'm just going to say that VAF at least, is not willing to take any chances. I couldn't agree with you more Tina - it is our responsibility as business owners to put policies and procedures in place that protect us. I learned the hard way the first time I experienced a non-pay issue, and made changes to my own business immediately. I don't have issues with payment anymore. End of story. I took proactive measures to curb the issue. I'd suggest that instead of looking for ways to 'call out' bad clients, look for ways to fortify your business so you don't get stung; create intake procedures that help you weed out the bad clients from the start so you never have to go down that road. It's a way to put your energy in a positive direction, rather than a negative one and will ultimately make you a stronger business owner, rather than a bitter one.

I never said I wanted to start a blacklist on this Forum. I have started my own blacklist of clients that simply don't want to pay. I follow the same criteria the Credit Card Reporting companies do. You must have proof to back up your claim. You can not be sued if what is written is TRUE.

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Phyllis L
UNIQUELY40, LLC
http://www.uniquely40.com

Originally Posted by Tess

Good question... It's not something I've ever done and can't see myself doing it - although I never say 'never' I always take a deposit from new clients and hold the funds for six months of regularly paid invoices, for ongoing work. For single projects I take 50% min up front and the rest of the payments are worked out in the proposal at various stages of completion. I also do have late payment penalties written into all of my proposals, contracts, and invoices - and I implement them when need be, no matter who the client is. That's been enough for me so far. I'm curious to know if anyone else has ever taken credit info from a PC - and Jules, if this is something you'll be adding to your practice after all?

I've never done a credit check on a client and doubt that I would start adding that to my screening process. Of course, I haven't had any major non-payment issues since changing my payment structure either. A part of me wonders if you might miss out on a fantastic client if you judged by a credit report.
Granted you wouldn't want to work with someone whose report blatantly showed a disregard for paying bills. but especially in the current economic atmosphere lots of people have black marks on their credit reports. Once you've seen that credit report, you can't go back, it sets an opinion of that client in your head.
I'd also want to make sure that I disclosed the fact that I ran a credit check to potential clients. That disclosure could discourage even clients with great credit from contacting me for services due to their personal beliefs on privacy.

And Phyllis, as for someone not being able to sue you if what you're revealing is true. I'm sure there are many people who have been sued for defamation of character and libel that thought the same thing. The practice of law is complicated and the interpretation of what is and isn't slanderous doesn't always seem to make sense to those of us who haven't gone to law school.

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~Tina Marie Hilton of Clerical Advantage
& founder of VA Survival School

Originally Posted by uniquely40

I never said I wanted to start a blacklist on this Forum.

Phyllis, I understand... I was responding to the original poster of this thread and the topic that started this conversation.

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I totally agree that we should be looking at best practices and how best to secure our payment. As VAs we all run the risk of clients bailing on us but if we take the necessary means to protect ourselves and secure payment before we release a project is a great way to start.

Make sure your terms and conditions that you pass on to your clients state this fact. They get paid for their services so why shouldn't you do the same.

A blacklist is a good idea but nothing stops a client changing their name, email address and doing the same thing again.

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Althea
Virtually Yours PA