If you have a small business and a customer pays you weekly, then all of a sudden they skip out on you and do not pay thier bill what can you do to collect from him? I know I can take him to court, but that cost money & time. What do you know about writing your own collection letters such as if the person owes you $20 and then you tack on a service charge.

I don't know what type of business you have but I own and operate a machine shop. I may sound a little hard a$$ed but my policy is this--the work doesn't leave the shop until the money is in my hand. I have an agreement with the bank--I don't loan money and they don't do machining. In other words I don't give credit.

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1983 300-D turbo
1985 300-D turbo
1959 Harley Panhead chopper
1929 Ford coupe restored
I hang out with Boneheaddoctor at Schuman Automotive OBK#5
All liberals are mattoids but not all mattoids are liberal.

it depends on your contract with the customer, some states limit service charges. The quickest and easiest method is to go to small claims and get a judgment, if you're successful the court will file the lien on his credit report.


Or turn it over to a debt collection agency, but they'll cost some money. If you do your own collection to a consumer make sure you read the fair debt collection act, your intentions on saving money may end up costing you...and often does. If it's a business its fair game and they have no legal protection via the FDCA.

As above some local laws vary.

Through necessity I've become an expert in New York State landlord/tenant law.

Thus if I have a delinquent tenant I can write up the paperwork,submit it to the proper court,pay the nominal filing fee and await the results.

It also helps if you know the court clerks and officers by name and schmooze with them and occasionally buy them lunch and drinks.

Making friends with the Suffolk County Sherrif's office personnell does not hurt either.

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I owned a collection agency for years and worked in credit and finance for over 17 years. If this a a B2B situation, do whatever you feel comfortable with .. if it's a personal debt check your local laws. FDCPA is more geared to agencies than private collections. If you want a letter to send him check the web or one of the legal search engines. There are tons of preformatted letters out there. Fees and cost (sometimes interest) can be added in most states. If it's a business I would suggest threatening legal and advise him it is public record and his customers will know he doesn't pay his bills, that may effect his business and "presuede" him into paying. Communication is most important, find out why he stopped paying ... is it temporary or what? If you just want the money don't play games and get the the root cause of things. If he's broke no need to spend more money on a judgement you cannot collect on .... throwing good money away on bad.
Just my experience and prespective.
Good luck.

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Jeff SE PA
1981 300 CD 85K miles "Heidi"
84 El Camino (what an SS should have been in 84)
01 Jeep Cherokee lifted 3", goes anywhere

Thanks!!!

Learning stuff everyday.