Ever used a Collection Agency?

[Kelemvor]

Howdy all,

My wife does at home parties for Pampered Chef and one of her hosts is refusing to pay her for the items that she ordered. The only two options we seem to have is to take her to Small Claims Court or to use a Collection Agency.

If we go to SCC, there's no doubt we would win but most likely the person still wouldn't pay it anyway. There is the option of having someone's wages garnished but I have no idea how that works, if there's a time frame to wait first, or if it's even guaranteed to happen. Plus the fact that it's a hassle just to have to file and then go to court and such....

So we thought maybe a collection agency could help. However I know nothing about them to know if they even help just one off people like this or what. Anyone have any experience with them to know if it's even worth looking in to?

Thanks.

 

[BigJ]

For something else eh? :evil:

 

[funkymatt]

they either take a pretty big percentage or give you the money, tack on interest and surcharges and then bug the crap out of the offender.

 

[Ns1]

SCC is probably the better bet. Your wife does passion parties?

 

[Kelemvor]

Originally posted by: NeuroSynapsis
SCC is probably the better bet. Your wife does passion parties?

No it's not lingerie or sex toys or anything like that. It's Pampered Chef. Not sure why I didn't just put that in the OP. Oh well.

 

[Ns1]

Originally posted by: Kelemvor

Originally posted by: NeuroSynapsis
SCC is probably the better bet. Your wife does passion parties?

No it's not lingerie or sex toys or anything like that. It's Pampered Chef. Not sure why I didn't just put that in the OP. Oh well.

ah PC. they have some cool stuff; was thinkin about having the wifey do that for a while too. What's her comm if you don't mind me asking? 20?

 

[EagleKeeper]

If the SCC rules in your favor (no show by the defendent is a sure fire win),
You can then take the judgement and fill out a wage garnishment form at the courthouse.

Usually, then you pay some fees for the court to monitor it.
A notice is given to the employer by the legal system; and the employer will start sending $$ to the legal system.
The legal system may take their handling cut and send the rest to you.
You have the responsibility to ensure that the legal system knows when the full payments to you (inlcuding handling fees and court costs) have been collected.
The legal system will then notify the employer that the debt is paid.

 

[RKS]

I have done a couple debt collections.

Basically I send out a letter via certified mail that clearly states their rights and gives them an opportunity to contact the creditor to work out a payment plan or ask for more info on the debt. If they don't respond I can then go to the court and ask for a summary judgment and begin garnishment proceedings.

 

[kranky]

Does your wife still have the items, or did she already deliver them?

 

[Kelemvor]

The items were shipped directly to the individuals who ordered them. Most of the time she won't even place the order until she has the money but this was a time crunch so she made an exception. You can bet it is the last time an exception will be made.

So the people have their products and the host has their money.

She has had all kinds of excuses like the check is in the mail, i lost the money order I had, I lost your phone number, etc. There's basically no hope this will get resolved without some sort of 3rd party getting involved.

RKS, are you some sort of collection agent or can we just send a letter and then go to court for garnishment and skip the whole small claims court since there's really no disputing that she owes the money. That'd sure make things easier.

 

[RKS]

Originally posted by: Kelemvor
The items were shipped directly to the individuals who ordered them. Most of the time she won't even place the order until she has the money but this was a time crunch so she made an exception. You can bet it is the last time an exception will be made.

So the people have their products and the host has their money.

She has had all kinds of excuses like the check is in the mail, i lost the money order I had, I lost your phone number, etc. There's basically no hope this will get resolved without some sort of 3rd party getting involved.

RKS, are you some sort of collection agent or can we just send a letter and then go to court for garnishment and skip the whole small claims court since there's really no disputing that she owes the money. That'd sure make things easier.

Sorry I am an attorney in OH. I would send out a letter for you but I am not licensed in any other state.

 

[jpeyton]

What kind of sum are we talking about (not the retail, but your cost)?

Might be better to chalk it up as a lesson learned.

 

[Kelemvor]

There is no cost vs retail. Customers order an item and pay that price. My wife just passes the money on. If my wife were to order it for herself she could get a discount. She ends up making 10-20% or something total off the sales in the end.

And this is in Wisconsin if I didn't mention that anywhere yet.

 

[paulney]

I have a small claims court pending for a deadbeat client.

The client ordered services, was informed of the rate and late cancellation policy. Client bailed at the last moment, and still owes us money.
I filed the papers in the SC court, and the hearing is set in 2 weeks. Hopefully he signed for a certified mail from court, otherwise I'll have to get someone to serve him the papers in person.

 

[Kelemvor]

Well I'm heading up north for the weekend so I'll check this again SUnday night.

Thanks all.