Skip on payment..

Originally Posted By: Kevin McMahon
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How many of you have trouble with clients skipping on payment, refusal to pay, bouncing checks or stopping payment on checks? What do you do when it happens?


Thanks,

Kevin


--
ABC Home Inspection, LLC

Originally Posted By: rpasquier
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If a client writes me a check for the inspection, and I collect BEFORE the inspection even starts, I immediately go to the bank that it is drawn on, and cash it. After I have the cash in hand, I go to my office, write up the report, and send it to the client.


So I have never had a problem with payment, because, no pay, no inspection, and if the check won't cash, NO report.


Originally Posted By: rpierson
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I’m not that hard core. It is all up to you, but I take a bit more lax approach. The only time I have been burned is by agents!


Originally Posted By: dbush
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I take lots of checks for inspections. I have one person who has not paid me, was scheduled for pmt at closing (which I don’t do often), and then I found out later there was no escrow money down on the house, if I had known that I wouldn’t have done it. I have never had a check bounce or be reversed. If you have FREA for your insurance, they include a collection if you do have a problem. You do need to seriously consider if you do not take checks, you COULD lose business over it from a convenience factor.



Dave Bush


MAB Member


"LIFE'S TOUGH, WEAR A HELMET"

Originally Posted By: slanicek
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I take pretty much the same approach as Richard. Also wondering, could something be put in the inspection agreement that if the client does not pay within x amount of days the inspection is deemed null and void? Allow enough days, say 30 or so, for the deal to close and get your money if you do agree to collect at closing. But if a few months after closing and you have still not been paid and the buyer suddenly calls and complains about something you might have missed, didn’t notate, etc. is there some way to get out of being liable since the agreed contract was never upheld?


Take for example a car insurance contract. If I make a down payment on a year term and agree to make monthly installments but after a few months I stop paying.......they don't continue covering me because I agreed to a year term. They'll send you a notice saying you have not lived up to your end of the deal so coverage is terminated.


Originally Posted By: rpierson
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We are talking about providing a service. And as such clients will judge you on the preceived convienances you provide. If you demand cash upfront, you may lose a client.


Business is all about taking risks. If you feel a couple of hundred dollars lost on canceled/bounced checks is unaccpetable, then collect cash upfront. But if an inspector asked me for cash upfront, I would be very hesitant on doing business with someone who does not trust me.


Originally Posted By: jpope
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Quote:
On the advice of my attorney, I placed a mechanics lien on a property after the check for my inspection bounced. Without getting into the legalities of a mechanics lien, let me just say that if this had gone as far as a court battle, the mechanics lien (in and of itself) would have been thrown out.

ALL escrow actions came to a screeching halt. I was paid two days after the escrow company was served with the papers. It cost me a total of $35 to collect almost 20 times that amount.

I didn't make any friends, but I got paid. If you want your money, there are ways to get it. I don't care what state you're in.

A mechanics lien is not the proper avenue for collecting in the case of a home inspection, but if you play dumb, there isn't anything anyone can do to release the lien for thirty to sixty days.

When the parties involved see their thousands of dollars "frozen," they tend to get a little bent

Their quickest "out" is to pay off the "pain in the a$$" inspector (that would be me) .



--
Jeff Pope
JPI Home Inspection Service
"At JPI, we'll help you look better"
(661) 212-0738

Originally Posted By: bemelander
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Kevin,


I feel taking checks is part of business and customers bouncing a check is unfortunately part of life. I have been lucky in my three years not to received a bounced check, but if you do there are ways to collect.


A short story.
A friend of mine received a bounced check from a renter. He would call the bank weekly. After 4 months his renter felt it was safe to start using that account. He then ran he check through again and received his money. She later called him complaining because 5 of her other checks had bounced.
Revenge is sometime gratifying.


--
Anchor Home Inspections

bill@anchorinspections.com

Originally Posted By: jsavino
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I had made a fuel oil delivery to one of our regular customers. She would pay me within 2 or 3 day after. Two days later, there’s the check. We deposit as normal. The check is returned for insufficient funds. Re-deposit again. I sent the customer a statement with a $25.00 re-deposit fee. The check was returned clearly marked “account closed”.


I put the check through collection and protest, waited 10 days for processing. I got the paper work back from the bank and (at that time) went to the D/A’s office.


3 months later, her daughter calls and said her mother was arrested when she was pulled over for running a red light. It seems there was a warrant on her for passing a bad check. I got my money, and she spent 2 days in a NYC jail. Sometimes there is justice!


John


Originally Posted By: dedwards
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Old Chinese Proverb…Revenge is best served cold…