Customer not paying, feel like I’m getting the run around

[Sookme]

Hi all, biting my tongue here!

Have recently gone self employed in January, so cashflow is critical right now.

I done some work for a lady, agreed an hourly rate which she was happy with as it worked out almost £180 cheaper than job price she had been quoted elsewhere. Originally she wanted 2 x up lighters fitted, 5 switch/socket faceplates changed.

When I arrived it turned in to 24 switch/socket plates, 2 up lighter installed, 2 up lighters not working, 1 socket not working, 1 intermediate circuit not working (she had attempted to change them all herself and mixed cables up). Also for good will she removed the door lock and couldn’t fit the new one so done that too. Agreed it was more than she enquired and estimated , that she was happy to pay the hourly rate to complete all requested work.

She was very happy and complimented how hard I worked, asked me to invoice and she will pay the following day. She wanted invoiced to her company to pay as an expense, which I did but put her name and home details on where work was carried out. I stated on invoice payable on receipt.

She rang me the following day saying she’s ordered loads of new smart gear can I fit, I said yes once invoice is paid we will arrange a date. It wasn’t paid that day, email reminder and text she replied will pay by the end of today, still nothing so I text again and she said I was going to pay all at once you complete the next lot of work. Once again I explained invoice cleared first before we arrange further work. Now had 5 agreed “payment by the end of the day” and nothing. I told her if there’s any problems let me know, she’s said no I will pay today.

It’s now 30 days overdue and I feel she has no intention of paying, also not heard anything from her since. Probably moved on to someone else to not pay.

Is the best course of action to just send her a final reminder by email and post with 7 days to pay before I submit it to small claims court? Do I submit to a sole trader as invoiced (her company) or individual? Can I claim late compensation and interest?

Thanks

 

[NateCreekside]

Unfortunately sounds like one of those times you're going to have to threaten small claims. Have you ever been self employed before this year? Always good to get a specific specification of work in writing before the start - sounds like a lot of verbal agreements going on here

 

[JBW175]

I’d try giving her a phone call first and ask her what the problem is. If there’s no movement and she doesn’t pay up, you’ve got no option but to threaten small claims court.

If she does pay up, I’d take my money and run, don’t need customers like that.

I don’t know what your policy is, but in normally hold off issuing any certification until the bills paid, it’s stated on my T&C’s along with any materials provided remain property of etc… until bills paid.

 

[timhoward]

I'd be inclined to:
1) Register with MCOL - Money Claim Online - Welcome - https://www.moneyclaim.gov.uk/ today so you can instantly follow up if required to without further delay.
2) Send written letter, recorded delivery. (This is adapted from one I had to write which was supplied to me by a solicitor friend )

I am writing to you about the fact that invoice number xxxxx dated DD/MM/YYYY remains unpaid despite several reminders. You have agreed to pay it verbally and by text message several times, yet payment has not been received.
The amount due for payment is £---. The original invoice is enclosed. Payment became due on DD/MM/YY.
If the full amount of the sum outstanding as set out above is not paid within 14 days of the date of this letter, I will begin legal action without further warning to obtain a court order requiring payment. The court may order costs of legal proceedings and other amounts to be paid in addition to the outstanding debt.
This letter is being sent in accordance with the pre-action conduct requirements set out in the Civil Procedure Rules which stipulate you must acknowledge receipt of this letter within 14 days. The court has the power to rule against you if you fail to respond.

I await your immediate payment of the outstanding amount. Payment can be made by bank transfer etc....
Yours sincerely

3) On day 15 register your claim. You need to look like you mean business so don't delay any further.

The process does allow claiming interest (8% per year pro rata) but as you didn't have written terms I personally wouldn't complicate proceedings by doing so. Keep it simple.
I predict either instant payment, or payment once they receive the claim pack.

All the best with it - it's the bad side of being self employed when people don't pay.

 

[Sookme]

I'd be inclined to:
1) Register with MCOL - Money Claim Online - Welcome - https://www.moneyclaim.gov.uk/ today so you can instantly follow up if required to without further delay.
2) Send written letter, recorded delivery. (This is adapted from one I had to write which was supplied to me by a solicitor friend )

I am writing to you about the fact that invoice number xxxxx dated DD/MM/YYYY remains unpaid despite several reminders. You have agreed to pay it verbally and by text message several times, yet payment has not been received.
The amount due for payment is £---. The original invoice is enclosed. Payment became due on DD/MM/YY.
If the full amount of the sum outstanding as set out above is not paid within 14 days of the date of this letter, I will begin legal action without further warning to obtain a court order requiring payment. The court may order costs of legal proceedings and other amounts to be paid in addition to the outstanding debt.
This letter is being sent in accordance with the pre-action conduct requirements set out in the Civil Procedure Rules which stipulate you must acknowledge receipt of this letter within 14 days. The court has the power to rule against you if you fail to respond.

I await your immediate payment of the outstanding amount. Payment can be made by bank transfer etc....
Yours sincerely

3) On day 15 register your claim. You need to look like you mean business so don't delay any further.

The process does allow claiming interest (8% per year pro rata) but as you didn't have written terms I personally wouldn't complicate proceedings by doing so. Keep it simple.
I predict either instant payment, or payment once they receive the claim pack.

All the best with it - it's the bad side of being self employed when people don't pay.

Much appreciated! Some sound advice.

Is there a fee to register MCOL? For example if I register and she gets the claim pack and pays me, do I then need to pay a fee of any kind?

Cheers

 

[Sookme]

I’d try giving her a phone call first and ask her what the problem is. If there’s no movement and she doesn’t pay up, you’ve got no option but to threaten small claims court.

If she does pay up, I’d take my money and run, don’t need customers like that.

I don’t know what your policy is, but in normally hold off issuing any certification until the bills paid, it’s stated on my T&C’s along with any materials provided remain property of etc… until bills paid.

Thanks for the advice.

Like I said I’ve just gone self employed so it’s new to me, all a learning curve I guess. But most definitely will be looking in to what you’ve mentioned.

Cheers

 

[Sookme]

Unfortunately sounds like one of those times you're going to have to threaten small claims. Have you ever been self employed before this year? Always good to get a specific specification of work in writing before the start - sounds like a lot of verbal agreements going on here

It’s my first time. You’re right, ideally it should’ve been written and signed. Maybe I will keep some blank templates in the van to hand write and sign in the future.

 

[timhoward]

Much appreciated! Some sound advice.

Is there a fee to register MCOL? For example if I register and she gets the claim pack and pays me, do I then need to pay a fee of any kind?

Cheers

No fee to register. Registering doesn't start any action of any kind.

If you do a claim application there is a fee for that that you pay up front (see below)
If they get a claim pack and decide to pay you directly, not through the process, it actually becomes complicated and you then have to decide what to do. I've not had that happen myself.
My understanding is that you either cancel the process and lose your fee, or continue with a reduced claim to cover court fees.

(There are lots of guides to this process online btw)

 

[Markyd]

Find her or her company on Social media..Then tell her if its not paid will let all her clients and friends know she is a bad payer...Money will be in bank in 10 mins Guaranteed

 

[Mike Johnson]

One additional threat is that if this work was carried out in her home and she is trying to use your invoice as a business expense it would seem to indicate a possible tax fraud, Inland Revenue take these sort of things very seriously, also is she registered for VAT, a VAT inspection is to be feared especially by someone that has proven herself, shale we say not of her word.

If you go this route, do make sure your own books are up to date.