What do you do in this situation (client payment question)

6 replies
So I had a recent situation come up that seems very sketchy from a client I brought on about 6 weeks back.

He signed a 6 month contract for marketing services, paid by check. Both checks were bounced and their bank account was then closed. I spoke with the guy and he acted concerned - even told me he's going to speak with the bank first thing monday morning (we'll see).

This actually pissed me off bad but I'm not sure what to do. Like I said they signed a contract but now I'm not sure I'll ever get a penny from them.

Any advice is much appreciated.
#client #payment #question #situation
  • Profile picture of the author Mav91890
    Did you spend any time yet working for them? Unfortunately you're going to have to shrug this off if the guy doesn't straighten it out, which seems to me to be unlikely. This is just something you'll evenetually run into.
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  • Profile picture of the author savidge4
    Originally Posted by Headstart View Post

    So I had a recent situation come up that seems very sketchy from a client I brought on about 6 weeks back.

    He signed a 6 month contract for marketing services, paid by check. Both checks were bounced and their bank account was then closed. I spoke with the guy and he acted concerned - even told me he's going to speak with the bank first thing monday morning (we'll see).

    This actually pissed me off bad but I'm not sure what to do. Like I said they signed a contract but now I'm not sure I'll ever get a penny from them.

    Any advice is much appreciated.
    What State does the place of business reside in? where is your home office? Some states have a bounced checks office. if you send them the checks they make attempts at payment. if the issue goes past something like 30 days they revoke his driving privileges and he can not get them back until all bounce checks are paid.

    Clients generally only bounce checks once with me! lol
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  • Profile picture of the author Rus Sells
    You won't ever get a penny from them. Move on and in the future wait two weeks after depositing clients checks before beginning work if they are new clients.
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  • Profile picture of the author qu4rk
    Originally Posted by Headstart View Post

    He signed a 6 month contract
    This also shows how big of a facade contracts are. Out of curiosity, how many people have taken legal action and/or successfully collected in a situation like this?
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    • Profile picture of the author savidge4
      Originally Posted by qu4rk View Post

      This also shows how big of a facade contracts are. Out of curiosity, how many people have taken legal action and/or successfully collected in a situation like this?
      I have, and will again I am sure. business is business. and contracts are contracts. at the very least if you can show work done you can throw a contractors lien on there.

      A better question is... how many are in this business and actually have an actual "business"?

      Spend the money and get contracts written for you by a business attorney... and there are no questions. Early out clause are there to protect you and your clients. remember "leverage" here. They pull early ( especially with non payment ) they have locked up your time that you could have been working with a paying client. LAW is actually on your side here - BUT only if you are an actual state registered law following business.

      By state.. here is the law: http://www.ckfraud.org/penalties.html bounced checks are no joke, and the right amount can get the bad check writer in a bit of hot water fast. - when reading this by the way "treble" is 3x the amount of the check.

      If you care to look and see what South Carolina's laws are and wonder why I run with my SC corp when it comes to companies that pay with checks! lol
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  • Profile picture of the author nurz
    I hope you did not spend a lot of time working for him yet. If his check is bounced and did not act to remedy the situation in a week then I suggest you cancel the contract yourself rather than wait out and waste precious time in a false hope that he’s going to pay you eventually. Talk to him and straighten things out.
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