deadbeat customers, lets hear it.

[The motor guy]

Any of you who are self-employed ever have issues collecting money? I think with the cost of living being what it is these days, you really have to stay on top of invoicing. I had a customer who sold his property I was servicing (or so he says) then says he didn't think the work I did was necessary. I told the guy no worries, but it would have been nice if you told me you sold the property. I could have argued until I was blue in the face with the guy, but decided it wouldn't be wise to upset someone I don't really know. I don't think he ever planned to tell me either. It's part of business, sometimes you get hosed. Anyone have any stories? Mine wasn't even enough to bother trying to collect.

 

[redhat]

Yes, happened here. I am out about 5-7k worth of equipment + labor to the company my FIL works for. Have called, e-mailed, texted... nothing. Been over 2 years now.

I debate from time to time wanting to do more but do not want to screw up anything for my FIL or his employment/health ins... etc.

It really stinks to be honest.

 

[The motor guy]

Yes, happened here. I am out about 5-7k worth of equipment + labor to the company my FIL works for. Have called, e-mailed, texted... nothing. Been over 2 years now.

I debate from time to time wanting to do more but do not want to screw up anything for my FIL or his employment/health ins... etc.

It really stinks to be honest.

I like to account for small losses over the year by adding a little extra on here and there to what ever extra small side jobs I get. 5-7k is quite a chunk of change. Honestly, it's not something that happens often though. Usually if there is a miscommunication they just pay regardless, then we both change accordingly so both parties are happy.

 

[ecotourist]

When I practised fee for service medicine (in Canada) I had occasional uncollectable accounts.

I learned to bill patients from Quebec directly because their government at that time anyway was very bad at paying. One large business asked me to do some workplace assessments (which aren't covered under Canadian medicare) and then wouldn't pay. I never collected on that but I figured out what they were doing quite quickly so it wasn't a lot of money.

My rule of thumb was that if a regular patient asked me to see a visiting friend or relative from another country I would do so for free. It only happened a few times a year. It's not fun being sick in another country without having to worry about medical costs.

 

[ArrestMeRedZ]

My wife had a number in her various business. If she judged something uncollectable, she would send them a 1099C. They would have to claim the forgiven debt as income on their taxes, otherwise it's audit and penalty time. The amount then came off of her income.
If the property is being sold you can also file a lien on the property. That screws with the sale until you are paid.

 

[The motor guy]

My wife had a number in her various business. If she judged something uncollectable, she would send them a 1099C. They would have to claim the forgiven debt as income on their taxes, otherwise it's audit and penalty time. The amount then came off of her income.
If the property is being sold you can also file a lien on the property. That screws with the sale until you are paid.

Unless they don't check and the sale goes through regardless. Then things get real exciting when the new owner finds he bought a debt lol

 

[ArrestMeRedZ]

Unless they don't check and the sale goes through regardless. Then things get real exciting when the new owner finds he bought a debt lol

In that case, the title company would have to pay.

 

[Dave Hess]

Any of you who are self-employed ever have issues collecting money? I think with the cost of living being what it is these days, you really have to stay on top of invoicing. I had a customer who sold his property I was servicing (or so he says) then says he didn't think the work I did was necessary. I told the guy no worries, but it would have been nice if you told me you sold the property. I could have argued until I was blue in the face with the guy, but decided it wouldn't be wise to upset someone I don't really know. I don't think he ever planned to tell me either. It's part of business, sometimes you get hosed. Anyone have any stories? Mine wasn't even enough to bother trying to collect.

Have you tried small claims court, are there invoices or signatures approving this work ?

 

[The motor guy]

Have you tried small claims court, are there invoices or signatures approving this work ?

The amount owed isn't large enough to be worth chasing. My guess is since the property was bought when the market was super hot, then selling a short time later, I bet they're upside down on it. I didn't do anything wrong, they just decided not to pay for the last two months worth of work. Was working for them for 3 years. I wanted to ask on here thinking it was a good topic for entertainment purposes lol

 

[97K15004WD]

About Form 1099-C, Cancellation of Debt | Internal Revenue Service

Information about Form 1099-C, Cancellation of Debt (Info Copy Only), including recent updates, related forms, and instructions on how to file. File 1099-C for canceled debt of $600 or more, if you are an applicable financial entity and an identifiable event has occurred.

www.irs.gov

When to Use Tax Form 1099-C for Cancellation of Debt

In most situations, if you receive a Form 1099-C from a lender after negotiating a debt cancellation with them, you'll have to report the amount on that form to the Internal Revenue Service as taxable income. Certain exceptions do apply.

turbotax.intuit.com

 

[TiGeo]

Not yet. Had to remind a few of my Ts&Cs (net 30 payment) but over the last 7 years of being an independent geologist I've always been paid. Choose clients wisely. Even had one goof international wire fees and short an invoice...he paid the balance using PayPal haha.

 

[Zee09]

I have several dishonest customers that require me to photograph their order contents next to the parcel and tracking number as they always claim they were shorted.

In the past I would simply refuse to deal with them and endure a week of internet spree kill so I just do this now. Seriously all it takes is one to get caught and it halts the nonsense for a month and eventually it starts all over again.

Yesterday I got a newbie and he was shocked when he got the picture.

Nothing new as it has been this way for decades... sadly the losers make you forget the great people sometimes

 

[andrew_j]

Yes, happened here. I am out about 5-7k worth of equipment + labor to the company my FIL works for. Have called, e-mailed, texted... nothing. Been over 2 years now.

I debate from time to time wanting to do more but do not want to screw up anything for my FIL or his employment/health ins... etc.

It really stinks to be honest.

Your FIL is useless unfortunate you got involved . I got screwed on an invoice with major company and met a VP of completely different division skiing a weekend and mentioned during with apres ski. Was paid by end of next week.

 

[ragtoplvr]

I have several dishonest customers that require me to photograph their order contents next to the parcel and tracking number as they always claim they were shorted.

In the past I would simply refuse to deal with them and endure a week of internet spree kill so I just do this now. Seriously all it takes is one to get caught and it halts the nonsense for a month and eventually it starts all over again.

Yesterday I got a newbie and he was shocked when he got the picture.

Nothing new as it has been this way for decades... sadly the losers make you forget the great people sometimes

we ship truck on pallet. We had a customer that ended up was doing the same thing to cook to books before a sale. I double checked each load, photographed it. It was wrapped with a special cap plastic with our logo on it. We denied their claims after that. The manager of the company was suprised first time he got the photos. Their sale was completed shortly after that and all lost their jobs, only a few got rewarded. We still have the cap ply, and have to use it once and a while.

Rod

 

[nickaluch]

When I had my business every Tuesday morning was spent chasing money invoices past due. Some just like paying slow a few times I got beat. More than a few times i needed to knock on the door get my money up to date then cut them off. Doing business in NYC is extremely cut throat

 

[ATex7239]

I’ve never owned my own business, but I have definitely been stiffed on deals before. I think there are some people who just don’t think they should have to pay for things. I don’t believe it has anything to do with them having or not having money. It is an entitlement issue. I have seen well off people who act this way. They have plenty in their pocket, but they want something out of yours too.

Through experience, I’ve gotten a lot better at identifying the type of person who would stiff me beforehand. There are subtle clues in behavior.

An aside: the folks who come on here and rant about poor service from McD’s or WM are the types of people who would probably make my spidey-sense tingle on being stiffed for payment.

 

[atikovi]

The amount owed isn't large enough to be worth chasing.

Then it isn't worth complaining about either. Just put it behind you and move on.

 

[Vern_in_IL]

Our local Concealed Carry Instructor requires 50 percent up front 10 days in advance of classes because of deadbeats. Used to be pay in full at end of class.

Our local firewood dealer delivered a load of wood, then the customer wanted to pay with a personal check and wanted to haggle on the price after the wood was already unloaded..... after ten he got his cash and did not budge on price.

 

[Pablo]

I was only ripped off fairly bad once in my life. Canadian.

Yes I've had a few people claim they were shorted.

Worse in my businesses were chargebacks which people even here consider to be innocent or something. They always burn the merchant. Always. Luckily the last few years before closing only one or two per year. A "parent" claiming their "kid" used their card without authorization is NOT the merchant's fault.

 

[ATex7239]

Our local Concealed Carry Instructor requires 50 percent up front 10 days in advance of classes because of deadbeats. Used to be pay in full at end of class.

Our local firewood dealer delivered a load of wood, then the customer wanted to pay with a personal check and wanted to haggle on the price after the wood was already unloaded..... after ten he got his cash and did not budge on price.

People like this are exactly why I stopped doing the garage sales. There are people who get off on haggling and getting over on someone. It’s low-key predatory behavior and it’s disgusting.