Comments on: How to Deal With Clients Who Refuse To Pay

By: Maria

Maria — Sun, 22 Apr 2018 21:50:55 +0000

Hi Derek – Great video and great advice! I have a question that I can’t seem to find an answer.
I have a small e-commerce business. I always put the customer first and always give a refund even for errors the customer may not be aware of … ex: a product was listed as Back Order, therefore, the cart did not apply the coupon code to that item. I discovered the error, applied the discount and issued the discount amount as a refund to the customer. Some may feel I didn’t have to, but I feel it was the right thing to do … all about showing a customer that you care and are honest. On to my question. This is the first time in 10 years of operating my business that this has happened. Instead of applying a 25% off on a particular order, my cart applied 50% off. I can not find how this error occurred and cannot duplicate the error. I contacted the customer explaining the error and how my cart miscalculated and gave them a 50% discount instead of a 25% by mistake (the coupon code clearly stats 25% off). I included the original invoice and a corrected invoice that showed the small balance remaining ($6.50). I offered that the remaining balance could be handled by 2 ways… 1) send a full refund and the customer could replace their order or 2) send a separate PayPal invoice for the remaining balance. I also told the customer that their order was all packed up and would ship as soon as hear back as to how they would like to proceed. No answer. After not hearing back for a couple of days and knowing my customer is on Facebook in the same community group, I messaged them through the group. They said they got my email and yet responded as though they had no idea about a balance. So, I kindly explained the situation again. Back to no answer from the customer. Honestly, I am starting to feel like this is making me out to be the jerk over $6.50. My question … how would you suggest handling this situation now? I am reading this behavior as a passive-aggressive way of telling me since the error was on my side, too bad…. and if I had discovered the error after shipping the product, I wouldn’t have contacted them. Should I have never brought up the error? Now that I am stuck in limbo, how would you recommend resolving it? The customer’s silence is frustrating and I am not how to resolve a situation when the other side is hiding. Thank you in advance!!!!

By: puneetsharma

puneetsharma — Mon, 05 Mar 2018 10:12:11 +0000

I was furstated when my client from Germany, currently stating in Brazil, refused to pay me The amount of 61,000 Euro. He is a business person. I am really dishearted with this experience.

By: Drew

Drew — Sat, 18 Mar 2017 20:50:01 +0000

The 180 comments seem to be missing a voice from the film industry. There is always oversupply, and a but like graphics and photography work, you’re competing with a continuous spectrum of the next kid over who says “I can do it for $5!” and some clients that can’t tell the difference. Sometimes, this mentality seeps over to payment habits.

Most comments are about people dealing with individuals. Often the problem can be much worse when your client is much bigger than you. A friend of mine does commercial music for Mercedes, Adidas campaigns etc., and says the major ad agencies he regularly works with are the worst. The pay Net90 and beyond, and they constantly have to phone and play that game to get paid. There isn’t much you can do to sway the mind of an accounting clerk that follows some unwritten, conceited corporate policy.

By: Kevin

Kevin — Sat, 04 Mar 2017 00:20:45 +0000

I had a customer who wrote me a bad check. I’m a small business owner and this hurts. He said he was happy with the service and the price too. Now I can’t get in touch with him at all.

By: Becky Blanton

Becky Blanton — Sun, 26 Feb 2017 18:59:25 +0000

Getting clients to pay begins with the contract. If you don’t have a written contract outlining who gets, pays or does what (in detail), your legal options are severely limited.

So, pay an attorney to draft a standard, air and water tight contract and use it. If people don’t or won’t sign a contract then they’re deadbeats who plan to stiff you. You’re better off never working with them. Once you know and trust clients, STILL use a contract. It’s how adults do business. Good friend? High school buddy? Family member? CONTRACT!!

In that contract SHOULD be a clause that you hold ALL RIGHTS, copyright, creative rights etc. to all content, graphics and work UNTIL you are paid in full. When they pay in full you send them a copyright release. If they use the work without the copyright release you sic an attorney on them and sue the nuts off of them. Very simple. Finally, if you didn’t have a contract, didn’t have a release, all you have is half-assed paperwork, invoice them three times then send the unpaid invoice to collections where they will have to deal with them, and ultimately have to pay someone to protect their credit rating.

By: Rang De

Rang De — Fri, 16 Dec 2016 08:45:13 +0000

Hi Bev!
A few questions you should be asking yourself. Was there an understanding that you would be charging them someday? Did you ever discuss renumeration with them?
Did you baby sit your grandchild out of love and that of support to your daughter and son in law then?

This should help you.

By: Bev Farnquist

Bev Farnquist — Sat, 03 Dec 2016 13:07:12 +0000

If i have been babysitting for my daughter n son in law for free for 6 years. But know they are separated n i what my ex son inlaw to pay me. The problem is that he refuses to. I have no contract with him. Do have have a change in small claims court with no agreement?

By: Mukesh

Mukesh — Thu, 01 Dec 2016 22:28:55 +0000

Hello Cristina.
How did u deal with your client (Motorcycle owner) ?
I have the same issue going on with a stupid company.
They approached me for their painting work and deposited 30% as an advance.
Now when I have designed more than 10 concepts for approval to start the work, they are saying to get their advance refund.
Now my question is: Who will pay for my designs ?

By: Charles

Charles — Fri, 25 Nov 2016 16:30:44 +0000

Most states allow you to sue in small claims court for up to $10-15,000. Sue them. It will not cost you anywhere near 10k; you don’t need a lawyer and, if you have written proof of your agreements, you will likely win.

By: Charles

Charles — Fri, 25 Nov 2016 16:28:38 +0000

Wherever you live, you may file a claim in small claims court for usually around fifteen bucks. You don’t need a lawyer; just bring your paperwork and any witnesses you may have and all you have to do is convince the judge that it is more likely than not that you are telling the truth and he will order them to pay. With this at your disposal, beforehand, either go online and google ‘sample demand letter,’ or something to that effect, to try and locate an example of how to write a legal claim letter, or just write it out intelligently yourself. Send these people a certified letter, to prove you sent it, stating what the agreement was and their failure to honor it and give them 10 days to pay in full or you will pursue further legal action. Tell them they should give this letter to their attorney immediately. You will likely receive your payment. If you don’t, after 10 days, go down to small claims and sue them. You will get all the instructions you need at the court. You will need their names and addresses. ONLY sue the person with whom you had an agreement and who is liable for the expenses. Good luck and Godspeed.