Customer Ignoring letters?

Hi there,

We are a small family business based in Herts, in July this year we came upon a difficult customer who continually changed dates and other info regarding her move. However her move day itself was nothing more than a nightmare! She agreed to pay her bill by cash (following several discounts) and paid the first half of £550.00 before we set off to her new address, well apart from her overbearing way and traffic we did not arrive at her new address until very late. At the end of the day everyone tired and just wanting to get away to go to bed I went to collect the remainder of her balance however she said she had forgotten to get it en-route and her secretary had gone home and being a new town etc etc she did not know where the nearest ATM was? She shares an office address with us and as such said she would bring the remainder into the office on Saturday for collection on Monday. Monday came and there was no money waiting, she said we had broken some plastic lids on her storage crates and demanded our insurers details, I contacted our insurer who told me not to give out their details and that they would write to her outlining the rules for claims. She told me that I would be paid once she had received the insurance companies details. She has spoken with both our insurance brokers & the underwriters and still we have had no payment. We have sent her a solicitors letter outlining the amount owed and giving her a set time in which to respond but she continues to ignore us. How can I get this customer to pay us what is owed? We are struggling as it is and things like this hit us really hard. I know it is not a massive amount of money but every penny owed pays to keep us in business.

Aren't some customers just a joy?

Is it a business to business transaction? If so have you added the late payment charges yet?

Also have you been making regular collection calls to this "customer"?

Hi,

Thanks for your reply, this is just a member of the public, i.e someone who called to request our service but happens to share our office address. (which I found out later)
I did initially add £25.00 late fee when I sent details to the solicitor but nothing else other than the consumables used and services supplied. Other than solicitors letter and contact through our insurers we personally have had no contact with the customer since.

Alas you can't add late payment costs and interest to consumer accounts and you can only include the £25 if it is included in your contract or T&C's.

Try calling or speaking to the client face to face and explaining that unless you are paid or an instalment plan is agreed that you wont have any option but to go to small claims court.

If that does not work, then the next step is to actually issue the proceedings.