Collection Agency - recommendations?

[Table 5]

I have a client who is over a year delinquent paying off his invoice.... I think it's time to take it to the next level. I'm not a fan of using these types of services, but hey, 4 grand is 4 grand.

Anyone have any recommendations for collection agencies? I know some here in the US, but they are Montreal, so I'd rather use a Canadian based company.

[Rubicant]

This may be a stupid question, but are you sure they know they owe you the money?

I have been taken to collections by Bell... twice... because they never sent me a bill. I'm sure that with $4000 they would be aware of it but just to make sure.

Commercial credit adjusters was one that I've dealt with, NCO financial services was the other.

[Table 5]

Oh they're plenty aware. I make sure to call and email monthly. The weird thing is they paid the first few jobs I've done for them just fine....it's just this last one that they don't seem to want to push through, even though they agreed to all the terms in the beginning, and ensured payment would be forthcoming.

It's basically at the point where they stopped answering emails in hopes it goes away.

[CaptainCrunch]

You can use the collection agency, however you're not going to recover your full amount.

Collection agencies charge in two different ways, either a fixed fee, or a percentage and I think the industry standard is about 25%.

If you can't reach the client you need to either threaten to report the debt which effects credit ratings, or just set a date and tell them that you're sending it in for collections. If they don't get back to you, then you move forward.

Or you go to the nearest hells angels bar and ask them to collect the debt for you.

[Table 5]

Montreal is more of a Rock Machine kind of town no?

It's probably a good idea to force the issue a bit and tell them what I'm planning to do if they don't comply. I think at this stage I'm prepared to take a hit on what I get back, even if it's 25%. After waiting so long, any recovery would be better than nothing.

[CaptainCrunch]

I would think that the best course of action is to turn up the heat a little before you go to the collection agency.

And I don't know if you want to use Rock Machine, you want you're money back, not a bomb through their front window.

[drewboy12]

I know this amazing collection agency based in Montreal. Should be easy to talk to someone at a local bar or night club. They call them selfs the Mafia.

[HPLovecraft]

Before sending it to an agency, try scaring them into action first by letting them know your plans if they don't pay by x date. That will often work when someone is just trying to forget the problem.

[troutman]

Why not sue them in Small Claims Court?

[Rathji]

^
This.

AFAIK the leg work required to collect after you get a judgement is a little bit of a pain if they don't pay outright, but at least you can get most of your money out of it.

[Table 5]

Originally Posted by troutman

Why not sue them in Small Claims Court?

Well, mostly because I live in the US and they are in Canada. It seems like something that I would have to be available for in person, no?

[Sample00]

Why not send them a "formal demand for payment" by way of registered letter.
In the letter state the amount owed, how much interest has accumulated, the per disk
Rate of interest and the time that it has to be paid by. If they don't pay it by that date
State that you will elevate the outstanding debt to the next level which is either a collection agency and/or small claims court.
Make sure you follow through with what you say.

NCO was calling us daily looking for someone that doesn't live here (I don't who it is...) I told them 5 times to take my number off their list.

If you want relentless, get these guys.

[SweetDoc]

Originally Posted by Table 5

Well, mostly because I live in the US and they are in Canada. It seems like something that I would have to be available for in person, no?

You will have a hard time collecting this. Collection agencies have no legal duristiction to collect American debt in Canada. The only thing you can do is come to Canada and get a judgement, and it might not be worth it.

[TylerSVT]

Yea a formal letter outlining your plans should be enough, most places would rather pay than go to small claims court or deal with any sort of legal action.

[Chingas]

Have you asked them in French?

[eddly]

Offer them a discount (if they pay within the next month). In your letter/email inform them that after a month it will be going to collections.

[Ducay]

Originally Posted by TylerSVT

Yea a formal letter outlining your plans should be enough, most places would rather pay than go to small claims court or deal with any sort of legal action.

Clearly you've never been involved in business. If they've avoided paying the amount for this long, they're not going to pay up just with the threat from a letter or small claims court.

Sell the receivable and cut your losses. How is your time worth all this hassle? Take what you can get (50% would be a steal) and laugh all the way to the bank.

[csnarpy]

Not sure what you did for them but what about repo? Is this something that can be taken back? If so, then that would be a good threat.

[CaptainCrunch]

Originally Posted by eddly

Offer them a discount (if they pay within the next month). In your letter/email inform them that after a month it will be going to collections.

I wouldn't offer them any kind of a discount at this point, why reward them for not paying?