Hi Guys,

 

I did post this is a different area of the forum but I think this is a more appropriate place. I am currently having an issue with a client in which we are owed for several different jobs. As it stands we are owed for business card design, 2 months SEO, domain renewal and 34% of a final fee for a project.

 

We have sent plenty of reminders and were promised 50% of the payment about 5 times but never received it. I became suspicious when the client had their IT guy ask me what we had access too, then he told me they were moving offices and finally said he had trouble paying because they had been knocked on a job.

 

After waiting 2/3 months we notified them that their account would be suspended.....still no response.

 

As a last resort we suspended their account. Once the client realised their website had been suspended he accused us of blackmail.

 

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After a few days I suggested that they make a payment of 50%, we would reactivated the account and we can discuss the remaining 50%. They agreed and that part went smoothly.

 

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Currently they want access to the backend of their website (which they have paid for but owe us for the 2 months SEO), access to the domain name (part of the outstanding invoice). Of course once they have access they will move the website and knock me for the remaining amount. I have informed them that we cannot give them access till we have come to an agreement.

 

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2 weeks later they still have not provided me with a reason why they will not pay. They even acknowledge they are not denying they owe me it, however they want a meeting. The client rang me yesterday and the message of the phone call was basically 'I want a meeting to see if you will talk to me like you do in your emails. If you do you can have your money'.

No good can come out of having a meeting as there is nothing to discuss. He accepts he owes the money but will not pay unless I meet him in person, which is hard, because as he know, I am not located in the UK. He is now threatning me with court action!

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So what do I do? Is it ok for me to deny him access to his website even though he has paid for it but his account is in arrears? Can I still suspend his account?

 

Any good advice would be great!

Thank you for your good advice. I am of the same thought that I should not give them any access till their account is cleared.

 

Should I still suspend their account and put their websites offline? I really do not believe a meeting will solve this matter. Firstly it will cost me £££ to get there, secondly he only wants a meeting because he is pissed off that he is in this situation.

 

I have asked multiple times: why is the payment being withheld (no answer) and what is the subject matter of the meeting (to explain what SEO work had been carried).

Edited October 18, 201411 yr by cudedesign

Thanks for the advice! The account was originally suspended and we then agreed 50% and the website would go live while we discuss the remaining 50%.

 

We traded a few emails where they demanded access details but would not tell me why they would not pay the remaining amount. Last Tuesday I gave them 7 days to provide a valid reason or pay, if they do not pay I said their account would be suspended again.

I do credit control for a living - giving 7 days for them to pay until suspending an account is standard.

 

You can also up the pressure by threatening to charge late payment interest and fees, as per UK Late Payment Legislation.

 

If they still don't pay when suspended, then send a 'letter before action' and mention that you will go to the Small Claims Court.

 

It might be worth trying to find out what their issue is - if cashflow then maybe offer a 3-month repayment plan - if a more general dispute over your work then maybe time to think about negotiating a settlement. Sometimes it isn't worth the hassle, stress and negativity to get every pound back, when you could be spending your time more productively earning on another project.

 

Good luck.

Hello,

 

Thanks for the responses, I was away last week and thought I was getting somewhere with the client.

 

The deadline to make payment was 5pm 21st October and at 4pm I received an email stating that they believe I am owed £100 but as a good will gesture would pay £400.

 

- They also tried telling me they had made a payment earlier on in the year but having requested a date to check they are unable to tell me. Again they cannot provide a reason why they will not pay the outstanding amount.

 

On the 22nd I spoke to the accountant and he asked what figure would I be happy to settle at and I offered two options:

 

Option One: 50% payment and they gain access to their website etc. Once the remaining 50% is paid they will gain access to their second website.

 

Option Two: £100 reduction from the total fee if the total amount is paid immediately.

 

Having spoken to the account 3 times since then he has been unable to speak with the client but says he is aware of the offer I have made.

 

I really don't want to suspend the website but have been left with no choice when they seem incapable of communicating.

It's gone too far, forget trying to hold a client relationship as that has broken down anyway.. Apply to small claims for the revovery of what is owed plus expenses and interest fees.

 

They are giving you the runaround, it's time to take action, the site is suspended pending payment and will not be re activated until full payment has been made, the court process is the only action left

Thanks Fuzzy. I have written to them now stating I can charge them a late payment fee etc and have now suspended the account. I am the client will now get in touch.

 

The client seems to think they can take me to court for loss of earnings while the website is down which I think is ridiculous.

Indeed that is ridiculous if you have suspended due to non payment with no valid dispute raised in writing.

If you go down the Small Claims route then they may use this as a defence and counterclaim but I would expect a judge to strike this out - clearly I cannot be 100% certain of this. But from experience I would expect this.

 

Ideally it would be settled before then anyway, though you would also be expected to show the court that you have made all reasonable attempts to settle.

 

All sounds like they are playing for time as they are short of funds.

Quick update: Have not been able to get hold of the client however their solicitor has agreed to that they will be paying £100 p/w until the total amount has been cleared. First payment to be paid on Monday so fingers crossed!

If their solicitor has said that then I would assume that's good news

Sounds like an admission of liability :-)

Quick update: Have not been able to get hold of the client however their solicitor has agreed to that they will be paying £100 p/w until the total amount has been cleared. First payment to be paid on Monday so fingers crossed!

Nice 1 broski