Small claims court - effective? Thread poster: Ruth Braine
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Ruth Braine 
United Kingdom
Local time: 19:00
Arabic to English
Hi all,
I am having payment problems with a direct client, who currently owes me about £7,000 for three large jobs dating back to July. They have been a very good client to date and we have a good relationship, but they claim they have been experiencing cash flow difficulties since July and so haven't been able to pay. We have discussed the issue (in a cordial manner), they proposed a payment plan of four instalments starting this week, but have now missed the first deadline.
... See more Hi all,
I am having payment problems with a direct client, who currently owes me about £7,000 for three large jobs dating back to July. They have been a very good client to date and we have a good relationship, but they claim they have been experiencing cash flow difficulties since July and so haven't been able to pay. We have discussed the issue (in a cordial manner), they proposed a payment plan of four instalments starting this week, but have now missed the first deadline.
I am not sure how best to proceed. I have had a good relationship with this client to date, and think it probable that they really are experiencing problems, and are not just trying to mess me around. I have therefore tried to date to be pragmatic and to compromise. However, as they have now missed the deadline they themselves proposed, I don't know if I should trust them any more, and feel I have to escalate things. But how? The only step I can think of is to take them to the small claims court, but I'm not sure how effective that would be. Does the SCC actually have any power to enforce its rulings? The client agrees they have to pay me and admits they're severely overdue, so a ruling in my favour won't actually help - I need someone to forcibly make sure I get the money!
Many thanks for your thoughts. ▲ Collapse
| | | | Tom in London
United Kingdom
Local time: 19:00
Member (2008)
Italian to English
Ruth Braine wrote:
Does the SCC actually have any power to enforce its rulings?
AFAIK many people ordered to pay a fine by the SCC never bother to do so.
For that reason I would not advise anyone to take that route; it's a chimera of justice.
Instead, I would suggest that you identify a credit recovery agency with a good website, and point your client to that website.
I find this usually does the trick. The mere possibility that you might initiate proceedings through a credit recovery agency puts the fear of God into people.
This strategy has worked for me several times and I've never actually had to contact the credit recovery agency.
But you shouldn't be kidding. You should be seriously intending to do it. If you're only threatening, people will know.
[Edited at 2011-11-13 12:57 GMT]
| | | | Sheila Wilson
Spain
Local time: 19:00
Member (2007)
English
+ ...
| Just a few thoughts | Nov 13, 2011 |
Hello Ruth,
Sorry to hear about your problems, particularly as it's such a large sum (well, it is to me, anyway!). I can't give you any absolute information, as I don't live in the UK now.
My own experience of the French SCC (a very happy one) is that they have total effectiveness - if the debtor defaults then they are in contempt of court and the bailiffs will go in and sell their computers etc to pay you. ... See more Hello Ruth,
Sorry to hear about your problems, particularly as it's such a large sum (well, it is to me, anyway!). I can't give you any absolute information, as I don't live in the UK now.
My own experience of the French SCC (a very happy one) is that they have total effectiveness - if the debtor defaults then they are in contempt of court and the bailiffs will go in and sell their computers etc to pay you. However, £7,000 is certainly above the limit of the French SCC (3,000€ if I remember rightly) and I believe that's true of the European one too. So that could be one reason against this course of action. In addition, the courts can do absolutely nothing if the debtor is in real difficulty as once they file for bankruptcy everything is ruled by the receiver and no additional claims can be heard - you just take your place in the queue and wait patiently. We are at the bottom of the list so don't normally get anything. The French courts made sure I checked on the company's solvability before accepting my plea. I suspect you would be throwing good money after bad if you paid debt-collectors or lawyers to chase them, though I would certainly advise a short talk with a lawyer, just to get some expert advice for future use (I'm sorry, but it could happen again, couldn't it?).
In my opinion, as just another freelancer with no legal training whatsoever, you will be better off complying with their terms, seeing as they are clearly making every effort to pay you, than spending too much.
Good luck!
Sheila ▲ Collapse
| | | | | Better sooner than later, if at all | Nov 13, 2011 |
Have you had a look at the company's latest filings on the Companies House website? If you're considering the small claims route, it would be best to check whether the company is good for the money first, because if not, no court will be able to make it pay you money it doesn't have.
On the one and only occasion when I told a client I planned to pursue a small claim (for a modest amount, I should add), the agency concerned coughed up immediately. A few months later, it went bust, s... See more Have you had a look at the company's latest filings on the Companies House website? If you're considering the small claims route, it would be best to check whether the company is good for the money first, because if not, no court will be able to make it pay you money it doesn't have.
On the one and only occasion when I told a client I planned to pursue a small claim (for a modest amount, I should add), the agency concerned coughed up immediately. A few months later, it went bust, so I'm glad I got paid when I did, otherwise I doubt I'd ever have seen the money as I don't think I would have featured very highly on the list of creditors. That's why, if you do decide to pursue a small claim and you believe the company is simply reluctant to let go of the money but can pay, I'd act sooner rather than later. However good the client may have been in the past, if it's not solvent and is going to the wall, it won't be worth keeping in future anyway, and it sounds as though you've been more than reasonable already. ▲ Collapse
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