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Collection Agencies?

Discussion in 'Pesticide & Herbicide Application' started by Rebs, Sep 15, 2005.

  1. Rebs

    Rebs LawnSite Member
    Posts: 34

    How many of you use a Collection Agency? I was wondering if they are worth it? If not, what method do you use to collect from people who are always late or just keep giving you the run around. (which if I can get my money from some they will be canceled) Do you have a letter that you send or what?

    Any info would be helpful.

    Thanks
     
  2. ant

    ant LawnSite Silver Member
    Posts: 2,431

    the one i use and i don't use him anymore charges 1/2 (big rip off and a shister). i so far collected a total of 3 out of 5 that bin in the works since year 2000.
    ant
     
  3. coyoteman

    coyoteman LawnSite Member
    Posts: 89

    Once we have made every attempt at recovering an outstanding balance we will place accounts with a collection service. Most times people will pay once we scare them with the chance of their accounts going to collections. Nobody wants a bad credit file. We are charged 30% of the recovery amount.
     
  4. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    mechanics lien..................... cheap and if you can wait you will get all your money plus fees
     
  5. i_plant_art

    i_plant_art LawnSite Senior Member
    Posts: 558



    if you get money from them they will be canceled???????????????????????? HELLO NEWSFLASH ...................... umm how bout lets cancel them now instead of doing more work for non paying customers.....
    recently i have used www.olddebts.com giving them a try one time to see how they compared to the local company i have used and they seemed to be cheaper in costs and got just as good of service.
     
  6. Rebs

    Rebs LawnSite Member
    Posts: 34

    Let me know how that comes out with them. I read on another thread about them, but I would like to here from more than one customer how they do.

    Thanks for the info.
     
  7. twindiddy

    twindiddy LawnSite Member
    Posts: 138

    few weeks ago we did a clean up for a guy who lives out of town. 2 acres of lawn, but whole property was 10 acres. up for sale, $370K. mowed and weedeated the 2 acres. dumped the grass on his property. $400. tried for 3 weeks to get payed. left him a voice mail on friday, around 10am. told him if i didn't here from him by 2pm, i was putting a lien on the property. called me an hour later from the bank wanting account numbers to wire money. bank charged me $10 for the transfer. cost me 10 bucks, but we got our money. $10 wire fee from now on!

    liens are the way to go. check your state, though. there are some time restraints and certain procedures you have to go through. $20 filing fee in florida.
     
  8. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Amazing how the thought of losing the sale of a 300K+ home makes a customer pay fast ! Plus you can add a lot of additional fees + intrest if your contracts set up right. Most customers would rather pay the "lawn boy" a few K, than loose the sale. Seen it happen once though, and when it was over he stilled payed and lost the original buyer and the second best offer that he was forced to accept was 15 k less than the original buyer was willing to pay
    :cry: :cry: :D
     

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