Who Do You Use For Collections?

One of my customers has stopped responding to phone calls and emails. They have a balance of about $20K, and it is four months past due. We have sent several notices and have offered payment plans with no response. This customer has several other locations with us and has always been a little late to pay but not like this. At this point, the relationship is not worth keeping IMO, and I am ready to terminate all of their accounts. We have never had someone not pay us like this (in 25 years) and have no idea how to go about collecting. I have been trying to avoid going through a collection agency but at this point, I am OK with losing a little cash.

Any advice would be appreciated.


Have you filed any liens at this point? Is there any concern that they may file bankruptcy?

I havent filed a lien yet and there's no concern for bankruptcy. I just read in the newspaper that they received over 3 million dollars in grant money from the state government.

Ever try paying a visit to their offices to see whats going on? I would meet the guys who signed off on the project or the person you are addressing your notices too.

Have you done the "Legal Letter' yet, written by your legal service, detailing specifically they can pay the $20K now, or pay $20K plus legal and administrative overhead, that could be $30K or more.

And just because they got grant money, don't assume that might make your life easier, even if they did want to give you any of it. Grants come with very specific spending guidelines that knowingly deviating from them can be almost tantamount to fraud.

Out of curiosity for anyone else, is there insurance you can get if a customer who owes money declares bankruptcy?

I have stopped by a few times, no one is there who can talk to me.

I will reach out to the lawyer who wrote our contracts and ask if he can send a legal notice. I think that's probably the best place to start.

Kip Rufini
Operations Manager
DeGrasse & Rolnick
Attorneys at Law
1800 Bering, Suite 1000
Houston, Texas 77057
krufini@degrasserolnick.com
Direct Line #713-800-8077
Telephone #713-840-9111 Ext 8077
Fax #713-840-7263

Do you have remote access to their site?

www.AlarmContracts.com They do collections.