Taking someone to small claims court or money claim online

fleeze69

Hi

I am a freelance designer and have a client who owes me over £4000 in unpaid invoices, I am looking for advice regarding taking the client to court or using money claim online.

Some of the invoices stem back to March 2009, which the last one being October 2009 so they are all well overdue - I have been chasing payment on these via email since july and have had numerous replies of cheques being sent next week, cash flow problems etc. I finally sent the owner a letter last week stating I wanted paying in 10 days or I'd have to take him to court. I received a reply today (via letter) stating that they are resolving their cash flow problems and I will start to receive payments sometime next week.

The problem is I have had similar replies via email on numerous occasions since September but still had no payment, should I wait for next week to come and go, or am I in my rights to make a claim once the 10 days are up. I feel from past experience with this client that if I wait until next week he will give me a "fob off" cheque of a few hundred pounds - then stop paying again. I believe he may have cash flow problems, but he spends £100's on corporate gifts for his client and suppliers regularly, I'd like a legal way to tie my invoices to his income to make sure I get the money eventually.

I have just bought my first house so £4000 means a huge amount, in fact I am having to pay a bigger % on my mortgage due to having a smaller deposit.

Should I start court proceedings, or wait?

Also am I right by saying that Money Claim Online is an online way of taking someone to court, if so does anyone have any experience with using it, is it as effective as taking someone to small claims.

Finally does his emails and letters saying that payments are coming stand up in a court of law as proof that he has accepted my invoices - as I don't want him to have anyway of squirming out of paying.

I have always been very impressed with peoples replies on this forum so thanks in advance anyone who replies.

hippyadam

fleeze69 wrote: »

am I in my rights to make a claim once the 10 days are up

Yes you are.

fleeze69 wrote: »

I'd like a legal way to tie my invoices to his income to make sure I get the money eventually.

No, what you will have if successful is a CCJ that will show against him (or the company). Enforcing it (Ie getting your money) may not be as easy and may even cost you more money!

fleeze69 wrote: »

Should I start court proceedings, or wait?

If you gave him 10 days, wait the 10 days. On day 11 its time for action...

fleeze69 wrote: »

Also am I right by saying that Money Claim Online is an online way of taking someone to court, if so does anyone have any experience with using it, is it as effective as taking someone to small claims.

It is exactly the same procedure, the only difference is in the way you submit your documentation etc to the court.

fleeze69 wrote: »

Finally does his emails and letters saying that payments are coming stand up in a court of law as proof that he has accepted my invoices - as I don't want him to have anyway of squirming out of paying.

Whilst email's promising payment will help, they are no magic bullet. However it should severely limit his ability to mount a defence along the lines of questioning the work or quality etc etc...

But as i have said, securing judgement is the easy part, if the guy knows the system well enough even that might not be enough to get paid. Plus you have to foot the initial costs for issuing, entering judgement & bailiffs fee's. Which if he never pays, you never get back!

Ideally tho we need more info, is it a Ltd company, partnership or sole trader?

Have you given any thought to using a pre legal collections agent?

fleeze69

Thank for your advice it's much appreciated.

To answer your questions the company is an LTD, does this make a difference?

In regards to other methods of collection (other than court) I'm not sure of my options, I realise I could pay a debt collector but I'd imagine they charge a good percentage - I think I'd prefer to try and get the money myself through the courts.

Thanks again

hippyadam

Being a Ltd company does make a difference as you can not pursue the director personally for your money, which if it was a sole trader or partnership you could.

So the first thing you need to do is find out if it's worth spending the money to start the court ball rolling As if this company has a string of unpaid CCJ's it probably isn't worth the time or expense of getting another judgement.

You can buy credit reports on ltd companys all over the internet these days, a website called riskdisk do a pay as you go service the wife's boss uses, or if you pm me the name i can have a look for you.

As for outside collectors their fee's can vary pretty dramatically and as in all things the cheapest or most expensive might not be the best... Ask around in the industry etc to see if anyone knows a good agency. Most only charge if succesful so theoretically you've nothing to lose if you try that before court and again if you want a name let me know :beer: