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Turning a client over to collection

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Lisa@srts-inc.com:
Hi,

We are a billing service and have a client who has refused to pay us.  They are no longer an active client and had been paying us when they were, but our last 2 invoices have been outstanding for for 4 months now.  I have called, emailed, sent a final notice and we are just being ignored.

Has anyone turned a client over to collection?  if so could you recommend one?  We have an agency we use for patient balances for our clients but they charge 30% and i suspect this client will pay once they receive that initial letter, so I am hoping to find an agency that is flexible on their rates.

Any help is appreciated.
Thanks
Lisa

PMRNC:
Collections really doesn't work IMHO. I'd go right to small claims court! Most likely when they get the notice to appear they quickly pay. Check to see if  the amount qualifies in your area for small claims Depending on your state you could receive a judgement for full amount plus your filing fee, if your state doesn't provide judgement collection you could go and file liens with your city/court. I know a billing company who went that far and provider still didn't pay until she went and put lien on his boat. ;)

Michele:
Is the client in the same city?  If not, you have to do small claims in the city they are in. 

We use a company called Transworld.  They are all over the US.  I am not a fan of collection agencies but we've seen great results with this one.  If you aren't able to do the small claims I would give them a call.  I can put you in touch with the guy we use.  Let me know if you want his contact.

PMRNC:
I've used Transworld for patient acct's but not for clients who owe money, have you used them for this Michelle? I've only had to go after one client in all these years and I tried collections ..he just ignored it so I filed small claims suit in his county and won because he didn't even show up, this was in NJ so I got my money 10 days later.  I did have to eat $400 of it because of the small claims limit but it was worth it, was a principal. Funny too because he called me about 2 years later not realizing he had stiffed me, turns out he has done it to other billing companies as well.

Lisa@srts-inc.com:
Thank you all for the replies.  Unfortunately the client is in another state, pretty far from the state I am in.  I had checked into that, I was hoping she would have to appear in my local small claims court but turns out i would have to go to hers. 

I have also used quite a few different collection agencies and the person either pays when they get the first letter or typically not at all.

We have had a few clients we have had to chase and it is frustrating, I wish we could do what the banks do, if you leave an account overdrawn you go on a list that other banks can access and deny you an account.  We need a list to share amongst billing companies of clients to avoid.

What I really want to do but I can't is treat this like if you bought a car and didn't pay they would repo it, so we billed your claims and you are now refusing to pay us so I should be able to send in claim retractions and have the insurance companies take the money paid, back.  Even the threat of it might get the deadbeat's attention.

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