Small Claims Court and being self employed

cherylsurrey

Take them to court, in my last job I did this all the time, and almost always they would pay up right at the last minute just before they got a judgement against them.

I also used a debt collection agency, who did charge a fee, and they were also bailiffs, they had a great success rate as well, so may be worth thinking about, although they will charge a fee it may be less hassle for you.

I found too many companies pleaded poverty but were just making it up, they assume as your a small business you will just give up and not chase the debt so they get goods or a service for free, unfortunately in my experience too many small businesses do just that when they could get the money if they took it to court.

suzyleusby

Thanks for all the replies. I have decided to take them to the small claims court. Luckily one of the clients actually paid up yesterday after the threat of this but the other one is still ignoring me so I'm going to start the process. I refuse to let this go.

Wywth

Which one paid up? Can't pay or won't pay?

suzyleusby

Won't pay. I think he finally caved in because I was getting in touch with him every week

Acc72

I am glad that you have received one payment - was it an electronic payment or cheque ? (if cheque, keep an eye on your account for the next week or so to be sure that it clears).

With regards to the client who still hasn't paid.

Google credit procedures / letter before action.

Send an initial letter (all correspondence needs to be in writing), stating that your invoice is unpaid and that as you are unaware of a reason as to why it has not been paid could they please settle their account immediately (attach a copy of your invoice, include a PO reference and also attach a copy of the contract/agreement if there was one).

If you do not receive payment within 7 days write a second letter - make reference to the first letter (and attach a copy of this letter plus the other items) stating that as you are unaware of a reason as to why it has not been paid could they please settle their account immediately.

If you do not receive payment within 7 days write a third letter (letter before action).

Make reference to the previous 2 letters.

State clearly that if you do not receive payment within 7 days that you will commence legal procedings and will take down their website without further notice.

On day number 7 if you have not received payment (cleared funds) then take down their website and send commence legal action using the on-line service (inexpensive and simple - there are lots of guides and info available).

And finally ...... in your line of work, I would insist on all payments being made in full before a future site goes live.

Good luck.

YEOVILGOM

Is the remaining client a limited company or partnership/sole trader?

Have you run any sort of credit check to establish if they have genuine cash flow issues?

suzyleusby

It's a limited company. Should I do a credit check before I start with the small claims court?

unexploded

Hi there, I'm also a designer and have been on the other side of this, even though I did do the work and as a result I successfully defended.

You may wish to go down the MCOL route, where you can file a case online for about £25.

How it works is, you'll file your claim, and the defendant receives a letter and a form. It says to the defendant to try and settle out of court first, either agree a sum, pay it all completely or continue with the court case. If it continues to court you'll need to make your case, collect your evidence and submit. Emails are incredibly important, especially if they've said they're happy with what you've done.

It's stressful but relatively a speedy process (took around three months for our date to come through). As the case was found in our favour, that was that. As you're trying to claim money, it may take longer and should you win I don't know how long it takes for you to retrieve your money.

Good luck to you. I know exactly how it feels to be waiting around for money. I'm afraid it just comes with the territory of running a business, but that's a long time to be waiting for that kind of money.

Brassedoff

suzyleusby wrote: »

Hi all,
I'm a self employed freelance web designer and have two clients that are refusing to pay for their websites which I have designed and created. They want the websites but are messing me about with payments which were due September last year. I have sent the three warning letters with not much success.
I just want to ask if anyone has any experience with taking something like this to the small claims court? Is it worth it to get my money as I am owed over £4000 in total. I do not have contracts in place but do have email correspondance saying they want and are happy with the websites etc
Suzanne

Why go down the small claims court? Go straight to issuing a stat demand, fill in athe form 6.1 (you don't need a solicitor), send a copy to their bank and everyone you know who the deal with. From experience I have done this a few times and been paid in full. Company's banks take this sort of thing seriously. Their solicitor may contact you asking you to withdraw or they will apply to the court. Tell them only if they give/issue a binding agreement to pay over a period.

You can still go don't the small claims, but you will then have admittance of debt and can ask the judge for summary judgement based on their admitting the debt.

Wywth

Brassedoff wrote: »

Why go down the small claims court? Go straight to issuing a stat demand, fill in athe form 6.1 (you don't need a solicitor), send a copy to their bank and everyone you know who the deal with. From experience I have done this a few times and been paid in full. Company's banks take this sort of thing seriously. Their solicitor may contact you asking you to withdraw or they will apply to the court. Tell them only if they give/issue a binding agreement to pay over a period.

You can still go don't the small claims, but you will then have admittance of debt and can ask the judge for summary judgement based on their admitting the debt.

:huh:

What would the OP put in Part A? :huh:

What if the defendant contacts the person mentioned in Part B to dispute the debt? :huh:

Following the small claims route (after checking the defendant can pay, LBAs, etc) is the correct way forward in this instance.