Business owner blues: SC stiffed me

[Hitokiri Akins]

So as I said on another recent thread, I started my own business in order to use my degree. Most of the time, customers are polite and grateful for my work, because I am saving them money on both gas and fees that the big names are charging for my kind of work.

And then, you get people like the butcher shop in the basement guy, or today's, the guy who stiffed me.

Like last time, I went to someone's home, and I got the same scenario; maintained home, shoveled and salted walk, clean interior....basically nothing that gave me an indication that I was going to have trouble with these people.

So I go in, I do my job, working on any computer issue that this household has, and the time comes to tally up payment; about $75. I should have known right then and there that I was going to get screwed, because I swear all the blood drained from their face.

So they wrote out the check, and I figured that I should deposit this check right away. So I dropped by my bank on my way home, I deposit the check. And wouldn't you know, the check bounced. Out of a 75 dollar check, I managed to get $18.50; not even enough to cover the gas.

I really need to find out my rights when this happens.

[Aethian]

You can charge them bounced check fees.

[IT Grunt]

You can charge them bounced check fees.

This. A lot of the small businesses around here do this, I've seen them range from $30 to $50 if a check bounces.

[MoonCat]

Did they know what the fee was likely to be when they scheduled the work? I only ask because it sounds like they were shocked ($75 sounds quite reasonable if there's more than one issue to work on). I would definitely set up some kind of form to be signed showing an estimate at least; that way if they change their minds, you find out before you start working on their problems and you've only lost a little time and the cost of the gas to drive to their place.

[Sapphire Silk]

So they wrote out the check, and I figured that I should deposit this check right away. So I dropped by my bank on my way home, I deposit the check. And wouldn't you know, the check bounced. Out of a 75 dollar check, I managed to get $18.50; not even enough to cover the gas.

I really need to find out my rights when this happens.

You can also charge them criminally if they don't pay up (including a bounced check fee and reimbursing you for any fees you incur from YOUR bank). Writing a bad check is a crime. That can be enough to make most deadbeats pay up (expect screaming and other SC behavior, though).

Small claims court is an option, though it may be too much trouble for a small bill.

Lots of small businesses rely on checks. I pay my lawn guy by check. But if too many customers stiff you, you may need to insist on cash only and/or a deposit.

[Grendus]

Get a contract that stipulates your fees up front and penalties for not paying, bounced checks, etc. It won't help much with bouncing checks and other scammers, but it gives you a paper trail for when you take them to court (make sure the fees are high enough to be worth your time suing them in small claims court).

[Hitokiri Akins]

Did they know what the fee was likely to be when they scheduled the work?

I tell people my rate when they initially call me; $25 to come out, and then $15 an hour after that. I know that doesn't quite make $75 when you do the math, but I modify my fee for the hour if I spend more than a half hour, but less than a full hour. So they knew what to expect, but they weren't expecting the job to take that long, since I flat out tell people "most jobs are 1 hour or less", because most jobs do.

What gets me though is that they only had $18.50 in their checking, but they knew that the fee to come out is $25.

You can also charge them criminally if they don't pay up (including a bounced check fee and reimbursing you for any fees you incur from YOUR bank). Writing a bad check is a crime. That can be enough to make most deadbeats pay up (expect screaming and other SC behavior, though).

Small claims court is an option, though it may be too much trouble for a small bill.

Lots of small businesses rely on checks. I pay my lawn guy by check. But if too many customers stiff you, you may need to insist on cash only and/or a deposit.

Yes, less than $500 dollars isn't worth the court costs.

No longer accept checks from people - cash or credit cards only. If they don't like it, tough shit. Also, 50% down payment up front before you even touch their stuff.

My phone doesn't have the ability to take credit cards, and I'm still building my business. I can't afford to turn off older customers with that policy.

[emax4]

At least you know where they live and can come and collect again personally, but you don't want to border on trespassing or harassment either.

[It's me]

My phone doesn't have the ability to take credit cards, and I'm still building my business. I can't afford to turn off older customers with that policy.

How about https://squareup.com/ for credit cards? And really, most people have cash or a credit card. Maybe your policy should be 25 dollars cash or credit up front, balance paid However they want?

[cleorose]

For Credit cards you can do a business paypal account

And you can send them an invoice right then and there.

But yeah I would say NO MORE CHECKS.

I can tell you sadly I have been married to my husband for 13 years. If he has checks he uses them . regardless of what is in the account. We have no had checks since 2007 for that reason. CAsh ONLY FAMILY. Some people are just that way. My sister in law did the same thing, she actually was nearly charged with check fraud. she wrote 4k or 5k in bad checks around town. Being broke didn't stop her from spending money, only got her to think of new ways to get what she wanted.

[Teskeria]

I like the PayPal Dongle for Credit Cards.

[BroSCFischer]

I would say:

#1) If they call back and ask you to come fix another problem, tell them that you require $165-$200 cash up front ($75 previous balance, $50 returned check fee, $25 new visit, and $15-$50 deposit for any additional work that needs to be done). That last part is partially/wholly refundable and is just in case the job runs long again. You can also halve the returned check fee (which would make it $140-175 cash upfront).

#2) Any future jobs for them, require $40 cash upfront, with $15 partially/wholly refundable depending on the length of the job.

#3) Absolutely refuse to accept checks from THIS customer until they have earned your trust back (whenever you feel like taking another shot at it) and make it clear that if you have any other problems with their checks, you won't accept that method of payment form them again.

If they balk at your restrictions, then it's up to you whether or not/how much you cave to them.

SC

[Hitokiri Akins]

I would say:

#1) If they call back and ask you to come fix another problem, tell them that you require $165-$200 cash up front ($75 previous balance, $50 returned check fee, $25 new visit, and $15-$50 deposit for any additional work that needs to be done). That last part is partially/wholly refundable and is just in case the job runs long again. You can also halve the returned check fee (which would make it $140-175 cash upfront).

#2) Any future jobs for them, require $40 cash upfront, with $15 partially/wholly refundable depending on the length of the job.

#3) Absolutely refuse to accept checks from THIS customer until they have earned your trust back (whenever you feel like taking another shot at it) and make it clear that if you have any other problems with their checks, you won't accept that method of payment form them again.

If they balk at your restrictions, then it's up to you whether or not/how much you cave to them.

SC

That's actually a good idea, as is the "$25 up front" in order to at least cover the gas.

[MaseMan]

Most towns have a local collection agency. Tell the customer they have 30 days to pay the full balance due, or they will be sent to collections. It ends up getting reported on their credit history.

[tedmchugh]

I have this problem everynow and then. In Illinois, we have a "Bad Check" program. Basically, after 3 attemtps to collect, I fill out some paperwork and send it off to the DA. In return, the state goes after the check writer. Once they collect the money, the state sends us a check for the exact amount plus bank charges. The check writer has to go to state run courses on why you shouldn't write bad checks...the check writer has to pay for these classes. This is a free program in our state, and it really works. It takes a while, but I have had lots of luck with the program. Check your state department.