Getting a collection agency

Discussion in 'Starting a Lawn Care Business' started by sweatyclippingcoveredguy, Jun 29, 2006.

  1. sweatyclippingcoveredguy

    sweatyclippingcoveredguy LawnSite Member
    Posts: 183

    Anyone know how I would go about setting this up? I have never had a problem getting paid until this one guy recently. The only other option I've heard of is placing a lien on someone's house. I'm in PA.

    I know this may have been asked a million times, but any feedback would be appreciated. I'd rather just get my money, but I'm pissed enough to maul this guy.

    Thanks
     
  2. 29 Palms Property Management

    29 Palms Property Management LawnSite Senior Member
    Posts: 347

  3. sweatyclippingcoveredguy

    sweatyclippingcoveredguy LawnSite Member
    Posts: 183

  4. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    It is not worth it for 1 guy in my opinon. most want a contract

    Number of Packages Price per Package Credit Bureau Notification Call Center NCOA Credit Report
    1 16.95 +3.00 +12.00 +1.00 +15.00

    How much does he owe you I see $47.95 of costs
     
  5. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Here's 10 free collection letters:
    http://members.aol.com/collectletters/

    For olddebts.com, get the Instant Collect:
    6.95 + 3.00 credit bureau, ncoa is free.
    But do your own follow-up first, use the Instant Collect thing as your final step.
     
  6. 29 Palms Property Management

    29 Palms Property Management LawnSite Senior Member
    Posts: 347

    Yeah, depending on how much this guy owes, will tell if it's worth it or not. Sometimes it's less of a hassle and costs less to just chalk it up as a loss, and a learning experience.
     
  7. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Yes, but when it burns, I go after them.
    When they give me the reason, when they either tried to rip me off or played me like Johnny Lawnboy or just acted like they're better than me so now they don't have to pay, I got news for them - 10 minutes and 10 dollars is my cost to chase (ok not quite, but that's the idea, always work on a low-cost way to chase and then it's almost always worth it).
     
  8. sweatyclippingcoveredguy

    sweatyclippingcoveredguy LawnSite Member
    Posts: 183

    Well he owes 150, since about December of last year, that's entitled to a late fee which will cover the cost of the package. I looked at it already, I don't need the credit report or a change of address option, so it should only be 15. The only reason this has went on so long is the guy is bed-ridden and I've even gone there twice with him saying he'll pay when he get's his SS check... I'm a pretty damn nice guy when I say he can pay in small increments monthly to fit his ability as long as he pays, but he has blatantly avoided payment. Would you guys just let that go?
     
  9. sweatyclippingcoveredguy

    sweatyclippingcoveredguy LawnSite Member
    Posts: 183

    The guy had paid before in the past, so there isn't too much to learn from except for maybe going the total contract route... but from what I've heard from most estimates is that people don't really like that in the sense that they feel you can rip them off by coming out anytime, rain, drought whatever. I'd rather have close routes and growing friendships with customers instead of milking people just to have them say they found someone else next year. We've really had some people over a decade, and those customers are trusting, don't nitpick, and don't call you at 7am screaming when are you coming when it's been exactly 7 days...
     
  10. 29 Palms Property Management

    29 Palms Property Management LawnSite Senior Member
    Posts: 347

    Go after him! Tack on a late fee for every month overdue. That way you can get a little more then just covering the cost of package. Inconvenience. It has been a total inconvenience for you since December. Your visa credit card company will charge you a late fee every time payment is late. So will the bank on a loan. And a bunch of other companies do the same. Cell phone, home/business phone company, electric company, and so on. Make him pay for the inconvenience, and your time trying to collect time and time again.
    Just my thoughts!
     

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