letter to non-paying client

[Hgrove]

Recently I posted a request for help with a letter to a non-paying client. This was for my friend the builder. I spoke to his wife recently and apparently they sent the letter but the client has not paid or made contact. They now want to write another letter, which they will deliver by hand through the letter box. Here is my effort, partly based on the answers to my previous post. I would be grateful if someone could tell me if this letter is ok/correct:

"By Hand"
Dear Mrs xxx
We wrote to you on (date) regarding our outstanding invoice no. xxx for � xxx (copy attached).
As we have not received your remittance or any reason for the non-payment we wonder whether you have not received our letter.
This letter is, accordingly, being delivered by hand at your address to ensure you receive it safely.
Once again, we trust you are satisfied with our work and would appreciate the sum of �xxx to ourselves at the above address.
If you have sent your payment in the last few days then please disregard this letter.

Yours sincerely

[stanleyman]

You need to send any letter recorded delivery to show proof to the County Court that they have received it. This will be your next step, personally I wouldn't waste too much time, a couple of letters are sufficient and a County Court summons will make them take notice. Hopefully they will ignore that as well and you can get judgement by default. The bailiff will do the rest.

[Oneeyedvic]

I'd agree with Stanleyman - whilst a hand delivered letter should be more efficient, there is no way of proving he received it - where as there is with a recorded delivery letter.

I would also put something along the lines of "This invoice was due on [date] and is now overdue*. If there are any reasons for not paying, please contact us immeadiately with the reason. If payment is not made within 7 days, further action will be taken."

It is important to find out when payment was due - if there is no time limit specified on the invoice (should say payment terms 30 days or similar) then you may want to insert: In line with industry practice,, this invoice was due.....

The chances are that they have had the previous letter. If they are in financial trouble, the longer that your frined waits, the less money he will probably get (other creditors acting promptly). Whilst your friend may see them as good customers, a custoemr is only a customer if they pay!

Make sure you put a deadline in (7, 14 days etc), again so that if you go to court you can show a clearly defined time scale.

[erimus1]

Firstly, write the letter 'Without Prejudice' - this is made in an offer of settlement, but means that should court action be required, the content of the letter, which is asking for 'full and final settlement' would not preclude the claimant from additional claims should the need arise.
Send it recorded - you need proof of delivery. You must also give a full seven days from receipt of the letter for payment. After this, make a County Court Application (moneyclaim online guarantee service within 48 hours - great).

I'm afraid that Oneeyedvic is incorrect about assumptions of a 30 payment in the absence of anything to express otherwise.

Simple 'contract' and 'consideration' rules dictate that the benefit and detriment of both parties would be straight away.

Good luck.
Regards,
Steve

[erimus1]

PS - don't mention anything about them being satisfied with work - this could just give them ideas for an out.

[gammaray]

I wouldn't waste time with any of the social niceties. You've written once and given them the oportunity to pay, or give a reason for non payment. Go straight to the county court and start proceedings. You could also suggest that your builder friend will be coming round to reclaim the materials that they haven't yet paid for.

[Hgrove]

Many thanks for all the help and advice. I spoke to him last night and in fact all I can do is pass the advice on to him - I am just a friend, not an employee or business partner. At the moment he says he does not want to know about issuing proceedings, he says the amount is not high enough, he insists he just wants to deliver the letter by hand. As a friend I want to be supportive, but I can't force him to do what I think is best. Anyhow, thank you for all the advice, I shall draft the letter accordingly. Also, I shall refer back to it if he gets another non-playing client.

[Oneeyedvic]

Hi Hgraove - can you tell your friend that to make things easier in future should this kind of thing happen in future, can he make sure his invoices go out with "Terms: Payment due within x days" and if appropriate "Goods remain property of X Builders until invoice is paid in full".

[gammaray]

I can endorse what oneeyedvic has said. It's vital in either your terms and conditions or on the invoice that you say what will happen in the event of non payment. On my T&C I make it clear that clients actually do not have title to the goods until cleared funds are in my account. I have on occasion taken back and refused license to use images that I have supplied when clients have been "slow" to pay.