I have a client who I worked with starting this past November up until January when I had to cut off my services because he was so far behind on his invoices. He paid $50 toward the balance (approx. $1,000) in January and said would make payments toward the balance until it is paid off - he has made several payment plans with me, made the first payment and then fell off the payment schedule. The whole situation sucks but I just want to get my money from him and move on. I already have a new good client that I am working with so I don't plan to work for this delinquent client again. So, here is my issue. It has been well over a month since he paid that measly $50 and, at the time, said would make another payment soon. That has not happened and now he is not responding to my emails. I sent him an email this past week stating if I did not hear from him by Wednesday, I would have no choice but to get my attorney involved and pursue further collection efforts. So, I don't have an attorney and I am just wondering what I can do from here to collect my balance from this guy. Is it worth taking legal action? Are there any resources where I can send him an attorney letter without paying a ton of money?

Hi there. Sorry to hear about your payment issues with this client. Unfortunately in this industry unless you are doing some kind of work where you could terminate services, such as email accounts or a website, you have no hold over the client and can be 'taken for a ride'.
I'm from South Africa and don't know much about US laws, but perhaps there is a legal aid centre you could contact or small claims court?
I wish you all the best in retrieving what is due to you

You may want to consider joining PPL - it's a legal sevice and there is a monthly fee, varies from state to state I think. They have written letters for me and I got my money back from an online host provider that refused to return my money or give me any kind of support at all. As long as I am in business I feel I need to have this type of coverage. A letter from an attorney might be enough to turn this situation around. Here's the link http://www.prepaidlegal.com/

Let us know what happens next with this and good luck!

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JoCarole
http://www.shoreofficeservices.com

This is always disappointing to hear, I feel for you!

To offer you my best advice I need to know what kind of terminology you have in your contract regarding late payments. If you have late payment policies in place, have you implemented them up until this point? And did you take any kind of deposit from the client initially (at the start of the working relationship)?

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I'm so sorry to hear about this, but I really have to thank you for posting your situation. After reading what happened to you and what Tess mentioned about what is stipulated in your agreement, I realized that I don't have anything in my agreement regarding late payments.

So ... your post was very helpful, if that is any comfort, to anyone such as me who needs to take a second look at what's in (and what's not in) our agreements. I do hope that you find a resolution. I can only feel for you and shake my head in the utter dishonesty of people.

That was also excellent advice on seeking help from the legal advice service as mentioned by JoCarole. Sometimes it makes sense to seek legal advice.

Please keep us posted on your situation, and I wish you the best of luck -- and again, I'm so sorry that this happened to you.

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Patty

It's unfortunate whenever this happens but especially depressing when you are just starting out in business.

I have, luckily, only had to deal with two clients like this over the last 4 years. The first, it took me 3 months to get paid but I had the advantage of knowing another VA who was having the same problem with this client, so we worked together to get us both paid.

The second, which was just 6 months ago, had a fairly small balance left to pay and was ignoring my emails & invoices. In my contract I state very clearly that they have 10 days to pay any invoice, after that time I charge a late fee DAILY. This client decided to send an email after he finally paid (45 days late but with the late charges) and ask if I thought it was a good business practice to charge such fees as it may turn off future clients. I had to laugh but responded nicely and thanked him for his concern. (FYI- The late fee policy has been included in every contract to every client since 2008)

You've gotten some great advice above. Look into every avenue to getting your money but, if it starts causing you undue stress it may be best to write it off as a learning experience and move on. Sometimes it's better to let things go rather than make yourself crazy.

Good Luck,

~C

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~Christina|BD Mag|VOSTeam

Maybe it wouldn't cost too much to have a lawyer send him a stern letter? That might get him to co-operate. It may be that he's having financial difficulties of his own. Is there any chance you could speak with him directly and see what his problem is?

Many years ago I came close to being stiffed for $1,000 by an elderly lawyer. Fortunately I had in my possession the company record books for 3 or 4 of his corporate clients so I had a bargaining chip - no money, no record books. On receiving his cheque I went directly to his bank and cashed it then (suggesting sweetly that he'd be better served finding someone closer - his office was at the other side of the city) I fired him.

It really is essential to get a deposit up front so if a new client turns out to be (being politically correct here) somewhat unreliable, you haven't lost everything.

Lynne

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The Wordpro Wizard
www.wordprowizard.com

I would follow up and get what the guy owes you if possible, you worked for it! I know it is easier said than done.

Why not just charge upfront from now on for a retained client? No money, no work.

Thanks everyone. I have talked to him over the phone and he is having financial problems. He is a Realtor but hasn't had a closing since November of last year (maybe he needs to find a new profession). Luckily, we are both located in the Metro Detroit area so I plan to take him to small claims court. It is only a $25 fee and I can add this fee to the amount he owes me. I would love to work with him more considering his situation, but the problem is he continues to just say he will get me a payment "soon" and will not commit to anything more. I wish I would have put something in there about late fees - I was just so desperate when I got this client that I was trying to be as accommodating as possible. Luckily now I have more of a client base and I don't feel the need to "over -accommodate" my clients anymore. Thanks for all your help!

Yes, I hoped this worked out in your favor. However, I agree with @La Virtual Admin Support Always charge upfront. No money, no work. I know of some many professionals not just VAs that have gotten stiff with providing services first without pay. For some reason people get lethargic once they have already received the services.