Collecting Bad Debts from
Out-of-State Customers
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Question:
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Category:
Business Law
Location: NJ
Subject: Nonpaying Customers,
what are my options?
I own a product distributorship with
national customers in the specialty beverage industry.
What
legal recourse do I have for customers who have neglected to pay
their accounts?
One of my customers, who was on pre-pay, sent
three bad checks in a row for COD orders. Then has ignored any
further payment requests after several months of attempted
communication. This particular customer is in MA, whereas our
headquarters is in NJ.
I have materials to substantiate the
sale, and the passing of the bad checks. The total amount is not
very large, about $1500.00, what do you think are my
options?
Thank you in
advance.
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Reply:
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Category: Business Law
Location:
NJ
Subject: Re: Nonpaying Customers, what are my
options?
There are no easy choices. The amount is small and
is probably not worth your time to file suit. If you file suit in
MA, you or an employee will be needed to testify in court. Is this
the best use of your business resources?
If you are looking
for an MA attorney, my brother in Law, Michael
Mulcahy practices in Springfield.
To solve the
problem in the future, why don't you arrange for a merchant account
to accept credit cards and checks by phone?
I hope this
helps!
Ron Cappuccio
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